Iran’s leading carmaker seeks American cars technology

Business Materials 7 February 2016 16:10 (UTC +04:00)

Baku, Azerbaijan, Feb. 7

By Khalid Kazimov - Trend:

Iran Khodro Industrial Group (IKCO), an Iranian leading vehicle manufacturer has said that the company may import American cars technology through Italian giant carmaker, Fiat, Iran Khodro chief said.

"We need to note that we are capable of transferring the technology of American cars to Iranian car makers through Fiat," Mehr news agency quoted Hashem Yekeh Zareh, the head of the IKCO as saying.

The IKCO intends to have cooperation with the international leading companies. However regarding the partnership with American carmakers we follow the decisions made by the government, he added. He touched upon a recent contract to establish a joint venture with PSA Peugeot Citroen, a French multinational manufacturer of automobiles, in Iran and said that 20 percent of the contents of the contract will remain secret.

The Iranian carmaker predicted that the first products of the joint venture will be supplied in the market in the first quarter of 2017. He further added that according to the contract the joint venture will produce the Peugeot models of 2008, 301, 208, 508, 5008. The French carmaker earlier confirmed that it had finalized a binding contract with Iran's leading automobile manufacturer Iran Khodro over the production of cars in the country.

The contract whose value stands at ˆ400 million envisages the investment by Peugeot in modernizing platforms, particularly in the main Iran Khodro site near Tehran. The investment will also allow for the export of vehicles to the region.

PSA will begin by producing 200,000 cars a year in a 50:50 joint venture, producing the Peugeot 208, 2008, and 301 models. Vehicle production will start in the second half of 2017.

The contract was signed during President Hassan Rouhani's visit to France in late January.