Iran to resume co-op with foreign carmakers upon removal of banking transaction ban
Baku, Azerbaijan, Dec. 6
By Fatih Karimov - Trend:
Iran will resume cooperation with foreign carmakers as soon as banking transactions ban is removed, an Iranian official who is holding negotiation with foreign carmakers, said, Iran's ISNA news agency reported on Dec. 6.
ISNA did not reveal details about the official.
The official said that in recent days, the two Iranian main carmakers Iran Khodro and Saipa, have finalized cooperation deals with a number of foreign carmakers.
Total car production in Iran was 1.6 million in 2011, but it was halved two years later, due to US-led sanctions on the country's auto industry.
Last week, over 500 CEOs, vice-presidents and other representatives of foreign carmakers took part in the 2nd International Conference on Iran Auto Industry in Tehran.
Following the conference, foreign companies have agreed to implement new joint venture deals with Iran. Under these deals, Iran wants 40 percent of production done in the country to begin with, rising to 85 percent after five years.
Iran Khodro, which has a 54 percent market share in the Islamic republic, plans to return this year to its 2011 production level - 600,000 cars.
Previously, it had agreements with Peugeot, Renault and Suzuki, but current production is done without foreign tie-ups.
"We expect our former partners back in Iran but on the terms that we offer," Hashem Yekezareh, Iran Khodro's chief executive said.