Daimler cuts ties with Iran

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Daimler cuts ties with Iran

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Daimler’s boss Dieter Zetsche has announced that the luxury carmaker will be the latest German firm to reduce its business ties with Iran because of the country’s nuclear programme.

The move followed US President Barack Obama’s call for swift sanctions to pressure Tehran.

Zetsche told shareholders at the company’s annual general meeting on Wednesday that there will be a freeze on the planned export to Iran of cars and trucks

German Chancellor Angela Merkel supports Iran’s isolation and major German firms Siemens, Munich Re and Allianz have already said they will reduce their ties.

The chief executive explained: “In light of current political developments, we will adjust our business relations with Iran. That means: we will relinquish our 30 percent stake in Iranian Diesel Engine Manufacturing.”

He added Daimler’s business activities with Iran will be limited to meeting its existing contractual obligations.

Zetsche also unveiled what he called an “ambitious but realistic” target of increasing the company’s sales by around double the rate of the global passenger car market this year.

Encouraged by a strong rise in sales since the start of the year, Daimler has forecast an operating profit this year of more than 1.5 billion euros.