Swedish truck maker AB Volvo has ended operations in Iran because newly imposed US sanctions have stopped the company from getting paid.
Volvo has stopped truck assembly in the country, having previously earmarked Iran as its main export hub for the Gulf and North American markets.
It comes after US sanctions were reimposed last month – following Donald Trump's decision to pull out of the Iran nuclear deal - causing a number of companies to reconsider their operations and investments in Iran.
Volvo spokesman Fredrik Ivarsson said the company could not get paid for any parts it shipped and decided not to operate in Iran.
He told Reuters: “With all these sanctions and everything that the US put [in place]... the bank system doesn't work in Iran.
“We can't get paid... So for now we don't have any business.”
He said Volvo had no active orders in Iran as of Monday.
The Swedish firm had been working with Saipa Diesel – a subsidiary of Iran's second-largest carmaker – which was assembling its trucks from parts shipped into the country.
A commercial department manager at Saipa Diesel confirmed to Reuters that Volvo Trucks had ended its partnership agreement.