Iran Khodro, Peugeot Agree to Open Joint Auto Co.
TEHRAN (Tasnim) – Iran's leading vehicle manufacturer Iran Khodro and the French carmaker Peugeot-Citroen (PSA) have agreed to launch a joint auto company in the Iranian capital, Tehran, under a joint venture worth 400 million euros, a report said.
“Today is the comeback of PSA to Iran. We are very proud,” said Jean Christophe Quemard, who oversees PSA’s Middle East and Africa operations. “This company is committed to Iran and through this Iranian company we show that we are really committed for the future and ready to invest in this country,” he added, AFP reported. The 50-50 joint venture will manufacture three models – the Peugeot208, the 2008 sport utility vehicle and 301 compact – using parts mostly made in Iran. Iran Khodro’s chief executive, Hashem Yeke Zareh, said 30% of the cars produced would be exported to the Middle East and beyond. PSA had to pull out of Iran, its second-largest market, in 2012 when the anti-Tehran-sanctions were imposed. The sanctions were removed after Tehran and the Group 5+1 (Russia, China, the US, Britain, France and Germany) on July 14, 2015 finalized a lasting nuclear deal and started implementing it on January 16, 2016. The agreement terminated all nuclear-related sanctions imposed on Iran. The announcement by PSA comes as Iranian Foregin Minister Mohmmad Javad Zarif is in Paris on an official visit. The Iranian foreign minister is planned to sit down with French President Francois Hollande as well as his counterpart Jean-Marc Ayrault, President of France’s National Assembly Claude Bartolone, and Senate President Gerard Larcher on Wednesday. Zarif arrived in Paris Tuesday at the head of a high-ranking delegation on the first leg of a two-nation European tour, which will also take him to the Netherlands.