Daimler mulling partnership for access to Iranian truck market image

Daimler AG, the world’s largest heavy truck manufacturer, is looking for ways to return to the Iranian market to sell its trucks, vans and buses as the country has managed to gain a reprieve from western sanctions.

Daimler AG, also the parent company of Mercedes-Benz, the third biggest luxury automaker in the world, is looking for ways to establish a commercial business partnership and might nail an agreement with Iran Khodro Co., the largest auto producer in the country that is very rich in oil. Western companies, including numerous automakers – from PSA Peugeot Citroen to VW AG – have been hard at work devising new strategies to benefit from the lifting of the economic sanctions, with industry experts seeing Iran as one of the last emerging markets. Iran Khodro might sign an agreement with the German producer of commercial vehicles and luxury cars in just three months, according to the company’s chief executive officer Hashem Yeke Zare, talking to media representatives in Tehran on Tuesday. “Mercedes-Benz is an old partner for Iran Khodro, and it has announced to us its interest and readiness to work with us,” said the executive.

He declined to shed any further details on what Mercedes’ parent seeks to achieve from the newly established partnership or the financial agreements, but hinted Daimler might establish an office in Iran within the next two to three months. The German automaker ended its ties with the country back in 2010 as the political tensions were reaching boiling point and had to give up the 30 percent holding it had in a diesel-engine joint venture with Iran Khodro or the plans to export from the country three-axle trucks.

Via Bloomberg