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Iran unveils conditions for cooperation with US carmakers

Business Materials 26 April 2015 14:59 (UTC +04:00)

Baku, Azerbaijan, Apr. 26

By Umid Niayesh - Trend:

Iranian government welcomes cooperation of Iranian carmakers with the US counterparts, Mohsen Salehinia, Iran's deputy industry minister said.

However he underlined that the ministry makes policies on the issue and the Iranian carmakers should move within the conditions which are set by the ministry.

He further unveiled seven conditions for cooperation of the Iranian auto manufacturers with the US companies including joint manufacturing, establishing and development of industrial units, forign side's investment, developing joint platform, developing Iran's auto technology as well as using the capabilities of Iranian Auto part makers, Iran's Mehr news agency reported April 26.

If the mentioned conditions are fulfilled in cooperation with foreign partners, the Iranian carmakers will be allowed to sign agreements with the US companies, Salehinia added.

He further said that does not have any certain information about Iran-US carmakers' negotiations.

Earlier Mohammad Reza Najafi Manesh, member of Board of Directors of the Iranian Auto Parts Manufacturers said that some negotiations have been held between US automakers, Iranian automakers and officials for presence in Iran's market.

Iran will welcome any foreign part's presence, if it leads to updating the Islamic Republic's auto-manufacturing technology, he said.

The US companies have expressed interest for presence and investment in Iran 's auto market after a nuclear deal is achieved, Najafi Manesh added.

Earlier Sasan Ghorbani the secretary-general of the Iranian Auto Parts Manufacturers Association said that some US carmaker companies have sent message to Iran, expressing readiness for cooperation and investment in Iran's auto industry.

They are preparing for the 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 automobile market.

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.

France's 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.

Follow the author on Twitter: @UmidNiayesh

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