Daimler freezes Iran operations

Daimler will freeze operations in Iran, including a plan to make trucks, after the US renewed a host of sanctions and President Donald Trump threatened to penalise companies doing business in the country.

Daimler will freeze operations in Iran, including a plan to make trucks, after the US renewed a host of sanctions and President Donald Trump threatened to penalise companies doing business in the country.

It had suspended its “limited” activities because of the trade curbs due to take effect on Tuesday, the world’s biggest luxury car maker and commercial vehicles manufacturer said. The move is a reversal of Daimler’s 2016 effort to re-establish ties by selling and producing trucks with Iran Khodro, the nation’s biggest vehicle maker.

As the US walked back from the 2015 nuclear agreement, a host of other companies, including French car makers Renault and PSA, have said they are pulling back from doing business in Iran.

Airbus has delivered only a fraction of the 100 aircraft that were part of a deal before sanctions were re-established, and phone company MTN has dropped a $750m plan for fibre connections in Iran.

“Anyone doing business with Iran will not be doing business with the US,” Trump tweeted.

The German car maker’s decision flies in the face of EU efforts to protect companies.