German automaker Daimler has decided to put aside its expansion plans in Iran as a reaction to the sanctions being placed on the Asian country by US.
In a statement to Reuters, Daimler said, “We have ceased our already restricted activities in Iran in accordance with the applicable sanctions.”
Daimler had been operating in Iran under a joint venture with Iran Khodro Co. The joint venture was responsible for manufacturing and distributing Mercedes-Benz Trucks in the country.
Daimler’s plan to open a representative office in the Iranian capital has been put on hold. The automaker has ceased both passenger vehicle as well as commercial vehicle related activities in the country until further notice.
Although Iran hasn’t been a big market for Daimler, the company is said to be monitoring the situation closely.
Earlier in June, Groupe PSA had started retracting from its joint ventures in Iran to comply with the US laws.