Daimler marks Iranian intentions after shift


Mercedes-Benz and Fuso could be back in Iran before the end of the year

Daimler marks Iranian intentions after shift
Dr Wolfgang Bernhard.

 

As the global community softens trade restrictions implemented for issues surrounding Iran’s nuclear program, Daimler AG has wasted no time in announcing its intention to return to the country.

Sanctions were only lifted on the country over weekend but Daimler has already announced plans to open an office in the country in the coming months and to locally produce Mercedes-Benz trucks and powertrain components.

"Daimler commercial vehicles have always had an excellent reputation in Iran," Daimler AG board member and truck and bus chief Dr Wolfgang Bernhard says.

"And right now, there is a huge demand for commercial vehicles, especially trucks.

"We will quickly resume our business activities in the market."

Aiding the move will be Daimler’s 50-year relationship with Iran Khodro Diesel (IKD), a subsidiary of Iran Khodro Industrial Group, the largest vehicle manufacturer in the Middle East and North Africa (MENA) region.

Dealings with the Dubai-based Mammut Group, a large truck bodybuilder and distributor, will also play a part.

"Our letters of intent with our local partners IKD and Mammut Industries are important pre-requisites to resume business quickly," Bernhard says.

While the letter of intent is only the beginning of the process, Daimler believes it will be able to import Actros and Axor trucks in completely knocked down (CKD) kits at some stage in 2016.

A Mammut Group subsidiary, Mayan, will be involved in the distribution of the light-duty Fuso brand in Iran, likely to be in the form of the Canter model.

Daimler has also marked its intentions to return as an Iranian Diesel Engine Manufacturing Co. shareholder.

The Iranian market has much to offer Daimler, with a 53-year presence in the country and, with exception of the 2010-2016 sanction window, a history of selling up to 10,000 vehicles annually.

 

 

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