Newspaper: Peugeot, Iran Khodro seek to resume cooperation
Azerbaijan, Baku, Jul.31/ Trend F.Milad/
Giant French and Iranian carmakers, Peugeot and Iran Khodro, are negotiating on conditions of resuming cooperation after the French side suspended its sales of car assembly kits to Iran in February under U.S. sanctions pressure, the Persian language daily Etemad reported.
Negotiations are expected to show results within the next month, the newspaper said, without elaborating.
"Iran Khodro has managed to become self-sufficient in producing 90 per cent of the parts for the popular Peugeot 206 model and an effort is being made to use local suppliers for parts that were previously imported," AFP quoted Iran Khodro deputy CEO Hossein Najari as saying.
PSA Peugeot Citroen on Wednesday announced it will seek to cut 1.5 billion euros ($1.8 billion dollars) in costs over the next three years after declaring an 819-million-euro ($989-million) loss for the first half of 2012.
Its exports to Iran where locally assembled versions of its 405 and 206 models are prevalent on the roads, represented up to 800 million euros in revenue per year before they were suspended, according to figures given in Tehran.