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Iranian Parliament, Ministry of Industry address Peugeot contract violation

Business Materials 20 April 2015 13:22 (UTC +04:00)

Tehran, Iran, Apr. 20

By Mehdi Sepahvand - Trend:

Iranian Parliament's Industry Commission spokesman Rouhollah Abbaspour has said that the commission is slated to hold a joint session with Minister of Industry, Mining, and Trade Mohammad Reza Nematzadeh.

The meeting will address top industrial issues such as a new car manufacturing contract between Iranian carmaker Iran Khodro and the French Peugeot, Abbaspour said, Fars news agency reported April 20.

He added that the session will address how Iran should be compensated for the damage it suffered because Peugeot experts left the country overnight despite a cooperation contract.

A new set of sanctions imposed on Iran last week caused Peugeot to withdraw its experts from Iran despite a previously signed contract.

Peugeot finalized a new joint venture deal with Iran Khodro in March.

Based on the deal, Peugeot was obliged to export 30 percent of cars, which are manufactured jointly.

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.

Peugeot is the foreign company with the biggest share in the Iranian car manufacturing industry. In 2012, Iran's car production fell from 1.6 billion cars per year to 700 thousand as Peugeot stopped investing in Iran and halted parts export to the country.

Edited by CN

Mehdi Sepahvand is Trend Agency's journalist in Iran, follow him on Twitter: @mehdisepahvand

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