Volvo Trucks has stopped assembly and production in Iran due to the economic stress of recent United States sanctions.
The truckmaker, owned by Swedish group AB Volvo, has been in partnership with SAIPA Diesel which is part of Iran’s second largest automaker.
However recent sanctions put on Iran by U.S. President Donald Trump has stalled the partnership, Reuters reports.
Volvo spokesman Fredrik Ivarsson told Reuters the truck production partnership has been put on hold as the sanctions had disrupted Iran’s banking system, stopping any payments.
Saipa Diesel assembled more than 3500 Volvo trucks in the year to May. A deal for around 5000 trucks was made for the current financial year although not a single truck has been assembled yet, Reuters reports.
