DaimlerChrysler discussing plan to build Mercedes-Benz cars in Iran

BERLIN February 6, 2003; The AP reports that DaimlerChrysler said Wednesday it is in talks to assemble Mercedes-Benz luxury autos in Iran with parts imported from Germany.

Spokesman Stephan Oeri said no decision has been made on a starting date or who the German-American firm's Iranian partner firms might be.

Setting up local assembly from imported parts, known as complete knockdown kits, can help get past some countries' requirements that cars sold have a certain share of local content. It is also a way around sometimes steep taxes on imported cars.

Mercedes-Benz chief Juergen Hubbert said in an interview last month that the brand expects to reach a deal by the end of 2003 on assembling cars from kits in China. It already does so in Egypt, Malaysia and India.