Mercedes-Benz Trucks signs contract with Iran
[LONDON] Germany's Mercedes-Benz Trucks signed a contract on Tuesday with Tehran-based automaker Iran Khodro, parent company Daimler AG told Reuters, laying the foundation for resuming distribution of its trucks in Iran.
The deal between Iran Khodro and Mercedes-Benz Trucks includes creating a joint company that provides sales and after-sale services in the Islamic Republic, Iran's semi-official Tasnim news agency reported.
According to Tasnim, a second deal would be also signed next month to create a joint venture in Iran for production of heavy vehicles including Actros trucks.
French PSA - the maker of Peugeots and Citroens - and rival Renault have pushed hard into Iran since its 2015 deal with world powers that saw international sanctions lifted in return for curbs on Tehran's nuclear activities.
PSA has signed production deals worth 700 million euros (S$1.12 billion), while Renault has announced a new plant investment to increase its production capacity to 350,000 vehicles a year.
Germany's Volkswagen and BMW are among those that have put Iranian ambitions on hold as they are concerned that any deal with Tehran might affect their sales operations in the United States.
REUTERS
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Transport & Logistics
Porsche posts Q1 profit drop on ramp-up costs
Air China orders homegrown C919s in challenge to jet duopoly
Huawei’s smart car tech offers automakers route to China sales
Sri Lanka to hand management of China-built airport to India, Russia companies
Tesla’s plan for affordable cars takes page from Detroit rivals
Toyota is investing US$1.4 billion to build another all-electric SUV in US