Saipa, Iran Khodro (IKCO) Lay Claim to Benz Partnership

Saipa, IKCO Lay Claim to Benz Partnership
Saipa, IKCO Lay Claim to Benz Partnership

Saipa Diesel, an Iranian manufacturer of trucks and trailers, is set to begin collaboration with Mercedes Benz, said the company's CEO on Tuesday.

According to Za'far Tanhapour, the two companies have been negotiating to produce trucks in Iran, IRNA reported.   

Saipa Diesel wishes to expand its production range and a deal is likely to be hammered out by the end of the current fiscal year (ends March 20, 2016), he noted.

The claim, however, was immediately rejected by the CEO of Iran Khodro Diesel (IKCO Diesel), on Wednesday.  

According to Gholamreza Razazi, Mercedes Benz has called IKCO Diesel and rejected the declaration while asserting that "IKCO Diesel is its only official partner in Iran," ISNA reported.

For more than half a century, IKCO Diesel has been the exclusive manufacturer and distributor of medium and heavy Mercedes trucks in Iran. Razazi also said that 'Setareh Iran Company' is the only official subsidiary and exclusive authorized retailer in Iran.  

Given that the business environment has improved in Iran, Mercedes and IKCO Diesel have increased collaboration on technical procedures; the official said adding that the Mercedes Benz Axor truck manufacturing line has resumed operation.

IKCO Diesel will also manufacture more Mercedes models in the near future, the official added.

Iran Khodro Diesel Company was initially established under the name of Khawar Industrial Group in early 1966. The company started its production by assembling one truck a day and increasing production over the first decade.

Today, Iran Khodro Diesel has a production site of 600,000 square meters. The company's total annual production is over 20,000 units of heavy and semi-heavy vehicles namely truck chassis, buses and minibuses.