DaimlerChrysler escapes Iran

DaimlerChrysler isn't planning on sticking around to see what happens if and when Iran unleashes its nuclear weapons, according to industry reports. Along with Reuters and CNN, the German weekly magazine WirtschaftsWoche is reporting that DaimlerChrysler is divesting the 51% stake it currently holds in Setareh, the exclusive distributor for Mercedes-Benz in the country.

According to the reports, DCX is responding to heavy pressure brought to bear by the White House on companies doing business in and with Iran. Economic isolation is one of the means the United States administration has at its disposal in order to pressure Iran to abandon its aggressive nuclear weapons program.

DaimlerChrysler has grown into the fifth largest automaker in the world. Following the announcement, DCX shares fell by less than a percent on the New York Stock Exchange.

Other manufacturers continue to do business with Iran; it remains to be seen whether competing automakers will follow the Mercedes example and divest as well.

[Source: CNNMoney.com]

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