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