Daimler to re-enter Iran market

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Germany’s Daimler said today that it had signed letters of intent with Iran Khodro Diesel (IKD) and the Mammut Group.

The areas of cooperation include a joint venture for local production of Mercedes-Benz trucks and powertrain components, plus the establishment of a sales company for Mercedes-Benz trucks and components, Reuters reported.

There are plans for Daimler to return as a shareholder in the former engine joint venture Iranian Diesel Engine Manufacturing Company (IDEM), Reuters said.

Daimler Trucks intends to open a representative office in Tehran during the first quarter of 2016, the company said.

The first Mercedes-Benz Actros and Axor trucks could be supplied to the country in the form of CKD (completely knocked down) kits – or fully disassembled – before the end of the year, Daimler said.

In addition to the plans for Mercedes-Benz trucks, Daimler Trucks also sees opportunities for its Mitsubishi FUSO brand – especially in the light-duty truck segment.

Daimler and Mammut have signed a FUSO distribution agreement.

Daimler has been present in Iran with Mercedes-Benz trucks and passenger cars since 1953.

Daimler sold up to 10,000 vehicles per year in Iran, most of them commercial vehicles, before the intensification of sanctions in 2012.