Daimler has said it had dropped plans to expand its Iran business in reaction to renewed US sanctions, which came into effect on Tuesday (7 August).
"We have ceased our already restricted activities in Iran in accordance with the applicable sanctions," Daimler told Reuters in a statement.
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The news agency noted Daimler had, early in 2016, established a joint venture with Iranian vehicle manufacturer and dealer Iran Khodro to make and distribute Mercedes-Benz trucks in the country.
Daimler had planned to open a representative office in Teheran. It the statement, Daimler states that as for now, neither its car-related nor truck-related activities in Iran had been resumed, Reuters said.
Daimler added it continued to monitor political developments carefully.
German daily Stuttgarter Zeitung was first to report Daimler's retreat from Iran earlier on Tuesday, Reuters said.
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By GlobalDataFrench automakers have a strong presence in Iran.
Last June, Renault insisted it would "not abandon" Iran as manufacturers struggle to understand the impact of US sanctions against Tehran.
The French automaker appeared to be moving in a different direction from fellow manufacturer PSA which said then it has started the suspension of its joint venture activities in Iran following the re-imposition of sanctions on the country by the US.
