...

US carmakers express readiness for cooperation with Iran

Business Materials 19 April 2015 16:27 (UTC +04:00)

Baku, Azerbaijan, Apr. 19

By Umid Niayesh - Trend:

Some US carmaker companies have sent message to Iran, expressing readiness for cooperation, Sasan Ghorbani, the secretary-general of the Iranian Auto Parts Manufacturers Association, a private body of about 850 parts companies, said.

The US carmakers have sent messages to Iranian auto companies via third parties and expressed readiness for investment in Iran's auto industry, Ghorbani added.

However, he did not reveal further details about either the US companies, or the mediators which have transferred the US carmakers' message to Tehran.

Ghorbani further said that some US companies reportedly have conducted studies to survey Iran's auto market, ISNA news agency reported April 19.

They are preparing for post-sanctions period, he said, adding after the international sanctions against Iran are removed, the US carmakers will compete with the European companies in Iran's auto market.

Last December a senior official from a US-based carmaker company visited Tehran and held talks with the Iranian carmakers on mutual cooperation. The company's name has not been unveiled so far.

The US-based company, which focuses on manufacturing electric cars, reached a common understanding on the initial cooperation. The parties reached agreements on transferring technology, investments and joint manufacturing.

Earlier, Iranian car manufacturer Iran Khodro(IKCO) and the French giant carmaker Peugeot agreed on establishing a joint car manufacturing plant in Iran. The new company will produce new car models and 30 percent of the jointly manufactured cars will be exported according to the agreement.

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.

Iran's auto industry has been a major casualty of penalties imposed over the Islamic republic's nuclear program, with production plummeting and workers laid off because of the ensuing economic slowdown.

The US sanctions on the auto industry in 2013 were the main cause, on top of American and European bans on Iranian bank transactions abroad. The mentioned sanctions were lifted after an interim nuclear agreement was reached between Iran and world powers and a final accord is still on the horizon, raising the prospect of better times for the industry.

Some 1.147 million cars have been produced in Iran during the last Iranian fiscal year (ended on March 20), 54 percent more year on year.

Tehran 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 in the mentioned year.

The Islamic Republic's automobile output faced a 40 percent decrease in 2012 due to the sanctions. The country was Asia's fifth largest car manufacturer in 2011, with a total output of 1,648,505.

Follow the author on Twitter: @UmidNiayesh

Latest

Latest