Iran Khodro Diesel, Daimler Deal Detailed

EghtesadOnline: Data released by Iran Khodro Diesel, a subsidiary of IKCO, sheds light on the company’s recent agreement with Mercedes Benz.

News ID: ۷۷۹۴۰۴

25 September 2017

On September 12 IKD said it had signed a deal with Daimler, the heavy vehicle manufacturing unit of the German auto giant Mercedes Benz.

A letter signed by the IKD chief Alireza Saji, published by codal.ir reveals details of the deal, Financial Tribune reported.

According to the letter, IKD is the exclusive partner of Daimler in Iran. In addition to imports of heavy-duty vehicles, the partnership incorporates production and assembly of Daimler trucks in Iran.

IKD has been named as the official representative of the German auto company and is required to offer after sales services on behalf of Daimler.  The deal was signed at a Daimler factory in Wörth am Rhein, in Germany’s western state of Rhineland-Palatinate.

During the signing ceremony, two additional memoranda of understanding were signed between the two sides.

One  MoU requires the two businesses to establish a joint company for sales of Daimler trucks in Iran. The other says the two sides will negotiate to revive the Iranian Diesel Engine Manufacturing Company (IDEM), a subsidiary of IKCO.

Founded in 1969, and based in the northern city of Tabriz, IDEM manufactures light, semi-heavy and heavy diesel engines.

The agreements are part of the German truck maker’s reentry into the large and expanding Iranian market following the easing of international sanctions last year.

During the ceremony IKCO chief Hashem Yekezare said his company and Mercedes-Benz are set to launch production and assembly of Daimler trucks.

The production deal should be finalized in the coming months, he was quoted as saying.

In a letter sent to Financial Tribune by the Iranian business, IKCO manager of international relations, Hassan Bananej, said a joint production deal will be signed between IKD and Daimler “within the coming months”.

He said the current and future generations of Actros trucks will be produced through the JV.

Initially introduced in 1995, Actros series has been popular with truckers in Iran and is used for long-distance haulage, heavy duty distribution haulage, and construction haulage. It is available in weights starting at 18 tons and is powered by a straight 6 cylinder diesel engine with turbocharger and intercooler.

Iran’s ambassador to Berlin, Ali Majedi, and deputy minister of industries Mohsen Salehinia were also present at the signing ceremony.