Daily Management Review

New U.S. Sanctions On Iran Forces Daimler To Stop Expansion In The Market


08/09/2018




New U.S. Sanctions On Iran Forces Daimler To Stop Expansion In The Market
The German car manufacturer Daimler has announced that that "until further notice", the company would stop all for5ms of commercial operations in Iran as a consequence to the demand by the US administration of companies staying away from Tehran for business after new sanctions by the Donald Trump administration was implemented on the country yesterday.
 
While claiming that it had "limited activities" only in the Islamic Republic till now, the Stuttgart-based car maker said that it was putting on hold all of its plans for expansion in the country which were first announced in 2016 after the completion of the Iran nuclear deal in 2015.
 
Striking a partnership with the local Iranian company to manufacturing and selling trucks for the Iranian market had been announced by Daimler at that time.
 
"The Iranian economy and automotive market have developed much weaker than anticipated. We continue to monitor the political developments, in particular with view to the future of the nuclear accord very closely," a Daimler statement read.
 
In a similar reaction to Daimler, a spokesperson of another German auto manufacturer - Volkswagen Group told the media that the company would "monitor the political and economic environment in Iran and the surrounding region very closely".
 
Volkswagen "abided by all national and international laws and export regulations", said the spokesperson. And in this context, the implications of re-imposed U.S. sanctions on Iran would be assessed by the largest car makers in the world, the spokesperson added. 
 
The first round of sanctions on Iran by the US after the country pulled out of the Iran nuclear deal came into force from Wednesday. The pullout and the sanctions were announced by US president Donald Trump in May.
 
In a style that has become a signature of Trump, the US president wrote on Twitter that he had signed-off the "most biting sanctions ever imposed". He also warned companies of other countries that trade with the US not to maintain any business relations with Iran or else such companies would not be allowed to do nay business with the US.  
 
"Anyone doing business with Iran will NOT be doing business with the United States," Trump said.
 
The re-imposition of sanctions on Iran by the US have been criticized by the other signatories of the Iranian treaty, on Tuesday, the European Union again stressed its objects and criticism of the new U.S. sanctions while also announcing that the economic block would help Iran to continue with exporting its oil even after October this year.
 
The Iran nuclear deal has been regarded as a landmark diplomatic deal that is worth preserving bv both the EU and Germany. The deal was signed by China, Russia, Germany, France, the United Kingdom and the Eu apart from the US in 2015.
 
(Source:www.xinhuanet.com)






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