Date: 25 Apr 2000
Time: 14:59:00
Remote Name: 156.29.145.175
Abrare Eqtesadi (Morning Daily) Apr. 12, 2000, No. 531
Summary: Benz foreign minister told Mostafa Hashemi Taba (vice president and head of the Physical Education Organization) on the last night of his stay in Iran, "The German Mercedes Benz chairman is very fond of Ali Daie's football style. He has decided to pay tribute to Daie for his having been named the best football player of the Asian continent for 1999 and for his presence in German football clubs, at a magnificent banquet. The Iranian junior league football team has also been invited by him to go to Stuttgart for a tournament."
It is now evident that, on the recommendation of advisors and experts, Daimler-Chrysler Company is aiming at the 60 million seat Iranian football field stadium, and the 200 million strong market population of the neighboring countries by resorting to football and sports diplomacy. An hour before his departure from Tehran, the head of the Mercedes Benz foreign diplomacy sat for an interview with Abrare Eqtesadi daily to talk about what has been achieved from his trip and the reasons for this trip to Iran, as well as the mysteries and secrets of Benz's success story, the future of relations with Iran, football diplomacy potentials in expansion of commercial ties and the conquering of the new markets.
Text:
Q: Decades have passed since Mercedes Benz logo and name have become a part of the Iranian transportation industry's culture; however, few people are familiar with the name Daimler-Chrysler. When was this combination born?
A: It's not only in Iran but people all over the world know this company by the name Mercedes Benz. This name has been known and well liked for 110 years all over the world. In 1998, Benz merged with American companies Chrysler and from then on instead of Daimler Benz, the new merger Daimler-Chrysler was born. The products of the company have not changed though. Light and heavy vehicle brand names such as Jeep, Dodge, Plymouth and Mercedes Benz, which have been highly popular products of these two companies are still being sold under the same brand names in the consumer market.
However, Daimler-Chrysler are active in a tremendously huge and voluminous sphere of industrial manufacturing, financial and commercial services in the four corners of the world. For instance this conglomerate is engaged in manufacturing of various light and heavy vehicles, engines, axles and other parts and components of automobiles. This conglomerate also owns 35.8 percent of the shares of the company that produces Airbus aircraft. The investment and activities of Daimler-Chrysler is very extensive and diversified. You should not be surprised to hear that the conglomerate owns 100 percent of AD Trans railway network of Germany, which has its head office in Berlin. We are even involved in the manufacturing and production of helicopters and spaceships. One of our highly lucrative activities is offering economic, financial, commercial and banking services. These sorts of services are offered by one of our subsidiary companies by the name of Debis. To put it in a nutshell there are 467,000 people employed by Daimler-Chrysler all over the world. The company's annual turnover is more than 150 billion dollars.
Q: What have been your economic justifications to expand your company's market share in Iran?
A: Our experts and planners believe that in a not too distant future, Iran will play the main economic and social part in the region. Geopolitical location of your country on the one hand and the social developments in Iran on the other hand give added importance to this part played by your country. The population of Iran is now more than 60 million people. Iran is strategically located on the way to the markets of regional countries. Your are opening up the gates of your country to the world gradually. The average per capita income in Iran is around 5000 dollars a year, which is a considerable amount and is unique among the developing countries. All signs indicate the fact that the social, economic and political conditions in this country are improving and taking a turn for the better. Naturally we have to think of our share in this huge market.
Q: What plans and ideas, in particular, do you have in mind for the Iranian market?
A: The plans we have for Iran is securing a continuous and lasting presence in this ever prosperous market, which is in the interests of both nations. Naturally, we can not only be interested in our exports and sales to this market. In order to keep a lasting presence in this market, we have decided to transfer the Mercedes Benz scientific know-how to Iran and pave the way for the manufacturing of various Benz automobiles in Iran. In order to achieve this we are in the process of negotiating with Iran Automobile Company (Iran Khodro). Progress in these talks is satisfactory and we try and hope that our talks would be productive. As a matter of fact we hope that pertinent contracts would be signed during Mr. (President) Khatami's forthcoming visit to Germany. Of course, I am not a politician and do not know what is going on behind the scene. Nonetheless, I hope Mr. Khatami's visit to Germany would prove a turning point both in the ties between Iran and Germany and those of Daimler-Chrysler. We are very optimistic about the expansion of trade with you and we are doing our best to effect the preparations. For the time being Daimler-Chrysler's subsidiary companies are busy negotiating with their Iranian counterparts. Iranians, too, are showing a lot of interests in these talks. We are waiting for the day these talks end up in conclusion of meaningful contracts between the two sides. German statesmen are now looking forward to receiving Mr. Khatami at Bonn Airport. We do hope this visit to open up more doors of your economy to Europe and America.
Q: How many more years do you think the Iranians would be able to drive domestically made cars and export them to the neighboring countries?
A: God only knows that. I can not put my finger on any specific date before contracts are signed. As a matter of fact what you asked depends on many factors such as the speed at which the Iranian social, economic developments as well as the changes in the world take place. There are many other ifs and buts. You should keep in mind the fact that industrial and economic developments are intricately intertwined with political relations and are not easily predictable. For instance who could imagine even up to the last three four years that one day Daimler and Chrysler would merge. The fact however, is that today they have merged. I myself like Iran very much and I am eagerly in favor of a strong presence of my company in your country.
Q: Why do you like Iran? What sorts of commonalties do you have with Iranians?
A: Perhaps the greatest commonalty I have with you Iranians is the experience of war and destruction. I was born in 1938 in Berlin. I was a toddler during the World War II and I felt the terror of war thoroughly. When in 1961 the Berlin Wall was built to divide a nation in two, they also separated the loved ones from each others. I was present at the foot of the wall and I can never forget the bitterness of the event. When the wall came down in 1989, I was there again and I could not believe what I was looking at. That was why I said anything could happen in the world. In this manner, both of us have experienced the terrors and destructions of wars and naturally there are strong ties between the two nations. Now you have set your heart on rebuilding your country, and we want to share in the pleasure of reconstruction with you. At any rate, we think the third millennium has new messages of cooperation and coexistence for all nations and mankind. We want to be at your side during this millennium with the common belief in dialogue and peace.
Q: Please tell the Iranian youth and managers how Benz attained so much fame and power?
A: The secret behind Mercedes Benz's success is not extremely mysterious and complicated. The philosophy of the founding fathers of this company was to arrive at the best quality possible and their motto was "either the best or nothing". We train our engineers and workers to build the best automobile and to provide the best services. This is the secret of Benz's success, constant training and education of the workers. In our company managers and engineers and every single worker rely on their own knowledge. They update their capabilities and know-how every year. This naturally keeps the world confident of Mercedes Benz.
Q: Daimler-Chrysler are members of the board of directors in many reputable German athletic clubs. As a matter of fact, you yourself are the deputy chairman of Stuttgart club. Still Benz's chairman is also the chairman of the board of directors in Hertha Berlin club in the city of Berlin. Daimler-Chrysler is also the biggest financial contributor to the German National Football team. It seems as though penetration into markets through the use of athletic attractions as they are employed by your company is a well planned agenda and at the root of your company's objectives. Isn't it so?
A: Why shouldn't it be so? Athletics today, and football in particular is the common language of young people all over the world. Football is also well liked in your country. This can naturally serve as a tool to consolidate friendships among nations and governments. In our opinion, business and sports can influence each other positively and even support each other. We view investment in sports as a form of responsibility for all economic foundations and business companies. For instance our company is active in more than 200 countries and we are in touch with the peoples of these countries. We would like to be the guest of the people's and governments' hearts. We think the new generation of the world in future would be Mercedes Benz's engineers and customers. We secure our presence in different markets through the application of socially motivated thoughts and making expenditures in sports of the future different peoples. In our view athletics keep people healthy and healthy people work well to promote themselves and make progress for their nations.
The private sector of different countries must definitely invest in the sports of their peoples. In recent years, Iran has been trying very hard to privatize its economy and this privatization would give more incentive to people to serve their families and their societies. As privatization of the economy spreads, people's contributions to sports would also increase. Sports are then rejuvenated. Athletic relations can provide better commercial links among nations. We firmly believe that all the people of the world are aboard the same ship and their fates are closely tied to each other.