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Mercedes-Benz Trucks signs contract with Iran Khodro

LONDON (Reuters) – Germany’s Mercedes-Benz Trucks signed a contract on Tuesday with Tehran-based automaker Iran Khodro, parent company Daimler AG (DAIGn.DE) told Reuters, laying the foundation for resuming distribution of its trucks in Iran.

The deal between Iran Khodro and Mercedes-Benz Trucks includes creating a joint company that provides sales and after-sale services in the Islamic Republic, Iran’s semi-official Tasnim news agency reported.

According to Tasnim, a second deal would be also signed next month to create a joint venture in Iran for production of heavy vehicles including Actros trucks.

French PSA (PEUP.PA) — the maker of Peugeots and Citroens — and rival Renault (RENA.PA) have pushed hard into Iran since its 2015 deal with world powers that saw international sanctions lifted in return for curbs on Tehran’s nuclear activities.