How Did Benz Return to Iran?

After about 20 months since the signing of the initial memorandum of understanding between Iran Khodro and Mercedes-Benz for the production of new Mercedes-Benz products in Iran, one of the three cooperation agreements between these two companies has been signed, and the other two agreements are expected to be signed soon, as announced by Iran Khodro. But how did Benz leave Iran and how has it returned? Iran Khodro has announced that Iran Khodro Diesel and Mercedes-Benz have signed a contract to establish a joint company in the field of sales and after-sales services for commercial vehicles. Additionally, the contract for two other joint companies will be finalized in the coming months. Hashim Yekeh Zareh, CEO of Iran Khodro Industrial Group, stated: "This contract will lead to the establishment of a joint company responsible for the exclusive sales of Mercedes-Benz commercial products. The second company, whose contract will be finalized next month, will be responsible for production, including the current and future generation of Actros trucks." Iran Khodro Diesel has announced that the current generation of Actros was produced until 2019, and the new generation of this truck will be produced according to modern European standards from 2019 onwards. In the next phase, another new production line is planned. According to the program, local production in the joint manufacturing company will reach 20% in the first year, and this figure could increase to 30-50% if economically viable. As Iran Khodro Diesel announced, the need assessment and production of new products and replacement of current products are also planned in the joint manufacturing company of Iran Khodro and Daimler. Additionally, the other company is negotiating regarding engine production between Iran Khodro Diesel and Daimler, which will be responsible for producing new engines based on market needs in the new joint company. Mercedes-Benz is one of the oldest active car manufacturers in the Iranian market, and even before the production of Paykan, the production of this company's products began with the manufacture of buses and trucks in the early 1960s in Iran. Before the revolution, this company also invested in the production of its engines in Iran at the Idem Tabriz company. After the revolution, Mercedes-Benz's activities in Iran slowed down, but they did not stop even during the war until the government of Mohammad Khatami, when the company's activities in Iran increased. During Khatami's presidency, Mercedes-Benz invested in both passenger and heavy vehicles in Iran. For example, the company increased its investment in Idem for the production of Benz engines and directed the German company ZF towards investment and cooperation with the Charkheshgar company in Iran for the production of Benz gearboxes. At that time, Mercedes-Benz held 30% of the shares of Idem Tabriz, and some engines produced in Iran were exported to the global Mercedes-Benz network. The company also made a direct investment by fully acquiring the shares of Setareh Iran for the production of Mercedes-Benz E-Class and C-Class vehicles. Iran was supposed to become the center for the production of Mercedes-Benz vehicles in the Middle East. Production of E-Class models had begun, but with the rise of Ahmadinejad's government and the deterioration of relations between Iran and Germany, production significantly decreased, and shortly before the imposition of sanctions, the company left Iran. However, after the nuclear agreement and before the finalization of new contracts with Renault and Peugeot, the German holding Daimler, which owns Mercedes-Benz, signed the first memorandum for the renewed production of its products in Iran with Iran Khodro Diesel. This memorandum has now led to the signing of the first cooperation agreement after 20 months. Two other agreements, which are expected to be signed soon, pertain to the joint production of trucks in Iran and the construction of heavy vehicle engines for Mercedes-Benz at Idem Tabriz. Additionally, Mercedes-Benz intends to start assembling several passenger models in Iran and revive the unfinished project of its first passenger car factory in the Middle East, which was halted during Ahmadinejad's government.