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Row looms over Iran plan to build Mercs in S. Africa
Page 29
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from a South African correspondent • Iran's biggest motor vehicle assembly company, Iran National, plans to establish an assembly plant in South Africa to produce Mercedes-Benz buses and trucks and possibly an Iran-designed passenger vehicle.
The move is likely to be bitterly contested by United Car and Diesel Distributors, holders of the Mercedes franchise for Southern Africa.
Iran National has established a South African subsidiary, Iran International Trading, and has received its first import permits from the Department of Commerce — for 10 buses. Plans are to build up a market through imports (300 in 1973), then to build an assembly plant to incorporate local content, "in two or three years," according to a spokesman.
The company's vehicles are based, on Mercedes 0392 luxury coaches and on 0309 three-ton trucks. The coaches will be available in a variety of seating configurations, and the trucks will come in two versions. The company was also reported to be planning a market in the African states for vehicles assembled in South Africa. It has already sold 20 coaches to Lesotho and is negotiating a similar deal with Botswana (these to be supplied by the tranian parent plant).
It was the Lesotho deal, writes our :orrespondent in South Africa, which upset United Car, which complained to Daimler-Benz. This has resulted in a denial that the Iran vehicle assembly company vitas planning to move into South Africa.
An announcement from Daimler-Benz AG in Stuttgart, said that the Pretoria-based United Car and Diesel Distributors (Pty) Ltd, has the exclusive sales and assembly rights for the full range of Mercedes-Benz products in South Africa, Swaziland, Lesotho and Botswana, and there is no intention of changing the existing relationship.
Despite the denial that it will not be able to do so, Iran National insists that it is determined to establish a plant in South Africa and market vehicles built to Mercedes-Benz specifications — even down to the familiar three-pointed star that is the Mercedes trade mark. The only difference, it is said, will be that the vehicles will be sold under the name Iran National, not as Mercedes products.
Similarly, the Iranian company's passenger vehicle will come on to the market under the name Paykan, although it will have a Peugeot-design engine and a body similar to Chrysler's Hillmans. If the Persians push ahead with their plans, they could precipitate a massive court action, for United Car and Diesel Distributors would almost certainly seek to protect its rights.
In November 1972 South African commercial vehicle sales, at 9594, were eight per cent behind the figure for November, 1971, but 8.9 per cent ahead of the sales of October 1972 — an indication that commercial vehicle sales are recovering from the blow they were dealt when the Government imposed hire purchase, restrictions on commercials bought for private use.