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Daimler to ‘restructure’ Iran business ties

Automaker Daimler became the latest German corporate giant to give in to international pressure over its business ties with Iran on Wednesday, saying it would "restructure" its activities there.

Daimler to 'restructure' Iran business ties
Photo: DPA

“In view of the current political situation, we have … once again extensively reassessed this business relationship. As a result, we are restructuring our business activities with Iran,” chief executive Dieter Zetsche told a shareholders’ meeting.

In concrete terms, Daimler said this meant it would sell its 30-percent stake in the Iranian Diesel Engine Manufacturing company and withdraw an application to export commercial vehicles for civilian use to Iran.

“In general, our business activities with Iran will now be limited to meeting our existing contractual obligations and continuing our cooperation with established customers,” Zetsche said.

“I would like to take this opportunity to particularly stress that none of these measures are directed against the Iranian people. However, the policies of the current Iranian leadership have compelled us to put our business relationship with that country on a new footing,” he added.

Germany’s international partners have heaped on pressure for it to loosen its strong business ties with Iran amid concern about the Islamic republic’s nuclear activities, which the West suspects are aimed at developing nuclear weapons.

Germany’s two largest insurance companies, Allianz and Munich Re, said in February they would stop doing business in Iran, while industrial giant Siemens said in January that it too was pulling out.

But ties still remain strong. According to figures from the German statistics office, Germany exported €3.7 billion worth of goods to Iran in 2009, down from €4.0 billion in 2008.

In January, an Iranian industry official said in newspapers that Tehran had signed a €1-billion deal with an unnamed German firm to build 100 gas turbo-compressors.

Last month, exiled Iranian Nobel prize winner Shirn Ebadi accused Siemens and Finnish telecoms firm Nokia of supplying the Iranian government with technology to monitor cell phone calls.

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CARS

From lizards to water, eco-bumps snag Tesla’s giant Berlin car factory

In the green forest outside Berlin, a David and Goliath-style battle is playing out between electric carmaker Tesla and environmental campaigners who want to stop its planned "gigafactory".

From lizards to water, eco-bumps snag Tesla's giant Berlin car factory
Tesla's gigafactory outside the doors of Berlin. dpa-Zentralbild | Patrick Pleul

“When I saw on TV that the Tesla factory was going to be built here, I couldn’t believe it,” said Steffen Schorch, driving his trusty German-made car.

The 60-year-old from Erkner village in the Berlin commuter belt has become one of the faces of the fight against the US auto giant’s first European factory, due to open in the Brandenburg region near Berlin in July.

“Tesla needs far too much water, and the region does not have this water,” said the environmental activist, a local representative of the Nabu ecologist campaign group.

Announced in November 2019, Tesla’s gigafactory project was warmly welcomed as an endorsement of the “Made in Germany” quality mark – but was immediately met with opposition from local residents.

Demonstrations, legal action, open letters – residents have done everything in their power to delay the project, supported by powerful
environmental campaign groups Nabu and Gruene Liga.

Tesla was forced to temporarily suspend forest clearing last year after campaigners won an injunction over threats to the habitats of resident lizards and snakes during their winter slumber.

READ MORE: Is Germany’s Volkswagen becoming ‘the new Tesla’ as it ramps up e-vehicle production?

And now they have focused their attention on water consumption – which could reach up to 3.6 million cubic metres a year, or around 30 percent of the region’s available supply, according to the ZDF public broadcaster.

The extra demand could place a huge burden on a region already affected by water shortages and hit by summer droughts for the past three years.

Local residents and environmentalists are also concerned about the impact on the wetlands, an important source of biodiversity in the region.

Tesla Street

“The water situation is bad, and will get worse,” Heiko Baschin, a spokesman for the neighbourhood association IG Freienbrink, told AFP.

Brandenburg’s environment minister Axel Vogel sought to play down the issue, saying in March that “capacity has not been exceeded for now”.

But the authorities admit that “the impact of droughts is significant” and have set up a working group to examine the issue in the long term.

The gigafactory is set to sprawl over 300 hectares – equivalent to approximately 560 football fields – southwest of the German capital.

Tesla is aiming to produce 500,000 electric vehicles a year at the plant, which will also be home to “the largest battery factory in the world”,
according to group boss Elon Musk.

In a little over a year and a half, swathes of coniferous forest have already been cleared to make way for vast concrete rectangles on a red earth base, accessed via the already iconic Tesla Strasse (Tesla Street).

German bureaucracy

The new site still has only provisional construction permits, but Tesla has been authorised by local officials to begin work at its own risk.

Final approval depends on an assessment of the project’s environmental impact – including the issue of water.

In theory, if approval is not granted, Tesla will have to dismantle the entire complex at its own expense.

But “pressure is being exerted (on the regulatory authorities), linked to Tesla’s significant investment”, Gruene Liga’s Michael Greschow told AFP.

In early April, Tesla said it was “irritated” by the slow pace of German bureaucracy, calling for exceptions to the rules for projects that help the environment.

Economy Minister Peter Altmaier agreed in April that his government “had not done enough” to reduce bureaucracy, lauding the gigafactory as a “very important project”.

Despite Germany’s reputation for efficiency, major infrastructure projects are often held up by bureaucracy criticised as excessive by the business community.

Among the most embarrassing examples are Berlin’s new airport which opened last October after an eight-year delay and Stuttgart’s new train station, which has been under construction since 2010.

Brandenburg’s economy minister, Joerg Steinbach, raised the possibility in February that the Tesla factory could be delayed beyond its July planned opening for the same reason.

SEE ALSO: Tesla advertises over 300 jobs for new Gigafactory near Berlin

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