Iran to seal deal with Mercedes-Benz soon
Iran says it will soon sign a major deal with German automaker Mercedes-Benz over production of medium-duty diesel engines.
Gholam-Reza Razzazi, the managing director of Iranian Diesel Engine Manufacturing (IDEM), told reporters that the cooperation with Mercedes-Benz will specifically involve the production of Arna mini-trucks as well as Arian mini-buses – both IDEM’s upcoming products.
Razzazi added that both vehicles will be equipped with the Mercedes-Benz Engine (MBE) 900 engine.
He said IDEM – which is a subsidiary of the country’s key auto brand Iran Khodro – and Mercedes-Benz will also cooperate over the production of the German manufacturer’s flagship truck brand named Actros.
Razzazi said Iran has requested Mercedes-Benz to provide an efficient customer support system as a precondition for cooperating with IDEM, adding that the related deals will be signed within weeks.
“We had previously worked with Benz and Hyundai to whom the quality of products was always important,” he said.
Razzazi said IDEM had to work with the Chinese auto brands over the past few years because the sanctions had kept credible producers away from Iran.
“The Chinese [auto brands] have become more experienced and improved [the quality of their products] over the past years,” he said. “They [the Chinese brands] are expected to be able to attract the satisfaction of the customers more than before”.
Chinese auto brands have drawn criticisms in Iran for the poor quality of their products and specifically an infamous truck brand named Hovo which is blamed for high road fatalities in the country.
The prospects for the removal of anti-Iran sanctions in light of the nuclear breakthrough in Vienna in July has already created an anticipation in the country to see Western auto brands replace the Chinese ones.
Many are already refusing to buy even the once-popular local brands over expectations that the Western models of cars will soon make their ways to the Iranian market over more competitive prices.
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