News ID: 4085946 -

IKCO, Benz ink deal to form joint venture

TEHRAN, Sep. 13 (MNA) – Iran Khodro automaker company (IKCO) and Germany’s Mercedes-Benz Automobile manufacturer signed a contract to form a joint venture.

Iran Khodro announced on Tuesday that its trucks division, Iran Khodro Diesel, has signed a deal with Mercedes-Benz Daimler to import heavy duty vehicles.

The deal was signed at a Daimler factory in Wörth am Rhein, in Germany’s western state of Rhineland-Palatinate.

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 of Iran.

According to the IKCO press office IKD has been named as the exclusive distributer of Daimler trucks in Iran. Furthermore, IKD will provide sales and after sales services in the country on behalf of the German auto giant.

The deal is part of the German truck maker’s reentry into the large and expanding Iranian market following the lifting of international sanctions.

During the ceremony CEO of IKCO Hashem Yekkeh Zare said his company and Mercedes-Benz are also in talks about the production of Benz vehicles and trucks in Iran.

The second deal is expected to be signed next month to create a joint venture in Iran for production of heavy vehicles including Actros trucks.

“The production deal should be finalized in the coming months,” he continued.

Iran’s ambassador to Berlin, Ali Majedi, Deputy Industry Mnister Mohsen Salehinia and Yekezare were present at the signing ceremony.

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