Iran Khodro, Peugeot to establish joint company

Photo: Iran Khodro, Peugeot to establish joint company / Economy news

Iran Khodro, Peugeot to establish joint company

Baku, Azerbaijan, July 26
By Fatih Karimov - Trend:

French car maker Peugeot has put in a request for establishing a joint company.

Iran Khodro Managing Director Hashem Yekkeh Zare' said that the two companies will have 50 percent share each in the joint venture, according to the ISNA news agency.

Peugeot has requested for establishing the joint company in order to expand services, products, and exports, he added.

The two companies are projected to manufacture Peugeot 301 and 2008 by using Iranian-made parts and components, he noted.

On May 5, Yekkeh Zare' said Peugeot should end its assembling works and focus on manufacturing products jointly with the Iranian company.

"We want them to transfer technology to us and establish research and development centers in Iran," Yekkeh Zare' said.

We are ready to resume cooperation with Peugeot only if it accepts this framework, he noted.

The French car makers Renault SA and PSA Peugeot CitroënSA have taken initial steps toward resuming deliveries to Iran, previously one of their biggest markets.

On April 29, member of the board of directors of the association of Iranian car part makers Mohammadreza Najafimanesh said that some $2 billion is needed for Iranian car manufacturers to meet the country's production target.

He added that the country's car output is projected to hit 1.3 million in the current calendar year. The current Iranian calendar year began on March 21, 2014.

Iran produced 989,110 cars in 2012, which made the country Asia's eighth largest car manufacturer.

Iran also stood at the world's 18th place.
China, Japan, South Korea, India, Thailand, Turkey, and Indonesia were Asia's seven largest car manufacturers.

Iran's automobile output faced 40 per cent decrease in 2012. The country was Asia's 5th largest car manufacturer in 2011, with a total output of 1,648,505.

Increasing prices of raw materials and foreign currencies are the main problems that the car manufacturers are facing with.

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