Mercedes-Benz officially returns to Iran

مرسدس بنز

Tehran (ISNA) - Germany’s Mercedes-Benz Trucks signed a contract with Tehran-based automaker Iran Khodro, parent company Daimler AG (DAIGn.DE) 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.

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 (PEUP.PA) -- the maker of Peugeots and Citroens -- and rival Renault (RENA.PA) have pushed hard into Iran since its 2015 deal with world powers that saw international sanctions lifted.

PSA has signed production deals worth 700 million euros ($768 million), while Renault has announced a new plant investment to increase its production capacity to 350,000 vehicles a year.

End Item