Iran’s leading carmaker to ink deal with Germany’s Daimler AG soon

TEHRAN (Tasnim) – The managing director of Iran’s leading car manufacturer, Iran Khodro Company (IKCO), said the company plans to sign a contract with Germany’s Daimler AG, the manufacturer of Mercedes-Benz cars, in coming months.

The IKCO and Daimler AG have reached a preliminary agreement to cooperate in manufacturing of commercial vehicles and sedans, Hashem Yekke Zare said.

He added that the two automakers will sign a contract in the first half of the upcoming Iranian year, (March 20 – September 21, 2016).

Elsewhere in his remarks, the official pointed to IKCO’s ongoing negotiations with the world’s major automakers and said his company is in serious talks with an Italian carmaker, without mentioning its name.

He went on to say that a contract will be signed with the Italian company soon, which will be bigger than IKCO’s contract with French carmaker PSA Peugeot Citroen.

Earlier last month, Yekke Zare had said that US car manufacturing technology will be indirectly imported to Iran through cooperation with Italy’s Fiat.

“Fiat is a strong auto manufacturing complex,” he said at the time, adding that IKCO has made a good choice by selecting Fiat as its fourth foreign partner.

Iran’s automotive industry is the second largest in the country, after its oil and gas industry, accounting for 10% of the GDP.

By Tasnim News Agency