TEHRAN- Iran Khodro Company (IKCO), the leading Iranian vehicle manufacturer, will finalize joint manufacturing of passenger cars with German automobile manufacturer Mercedes-Benz by the next two weeks, according to IKCO Managing Director Hashem Yekke-Zare’.

Yekke-Zare’ said it is a part of a deal Iran Khodro Diesel Company (a subsidiary of IKCO) and Mercedes-Benz will make on establishment of a joint company for the manufacturing of passenger and commercial vehicles, according to the Islamic Republic of Iran Broadcasting (IRIB).

Iran Khodro Diesel will hold 51 percent and Mercedes-Benz will hold 49 percent of the shares of the joint company, the IKCO’s managing director further announced.

He said a sales and after-sales services company will be also established jointly by the two companies; adding that Mercedes-Benz will account for 51 percent and Iran Khodro Diesel will account for 49 percent of this company’s shares.

The auto industry is the second largest source of foreign currency and foreign technology for Iran after oil.

Iranian automotive suppliers are strongly optimistic they will secure joint venture deals with Western partners following sanctions removal.

MA/