Fiat to resume exports to Iran as soon as import ban lifted – official

Business Materials 11 July 2018 13:38 (UTC +04:00)

Tehran, Iran, July 11

By A. Shirazi - Trend:

The head of Auto Importers Association, Meysam Rezai, said products of Italian automaker Fiat would return to Iran markets as soon as a ban by the government on the import of car is removed.

As soon as a ban by the government on the import of cars is lifted, Fiat cars will find their way to Iran’s auto market, Rezai said on July 11, ILNA news agency reported.

After the prices of different models of cars reached record highs on the Iranian market on June 11, the government announced ban on the import of cars as part of its efforts to control prices and stop capital flight from the country.

He added that Fiat would export cars to Iran during the first year of its cooperation with Iran.

“From the second to the fifth year, the production of Fiat cars will have to be realized in the country with 20 to 40 percent of the technology transfer”.

Rezai stressed that US sanctions are not going to affect Iran’s contract with Fiat and the Italian automaker has vowed to honor its promises and transfer technology to the country, calling on the government to get help from the private sector and launch Fiat’s production line in the country.

However, Fiat Chrysler Automobiles (FCA) told Trend recently that it had no plans to return to Iran.

“FCA has no plans to return to the Iranian market,” said the company.

Fiat halted sales to Iran in 2012 following similar moves by other car makers under US pressure to cut ties with Tehran.

On June 30, the head of Auto Importers Association said Fiat was poised to resume vehicle sales in Iran and reclaim its share in its lucrative market in the framework of a cooperation agreement with a private Iranian automaker company.

According to the terms of the deal, Fiat will grant its exclusive production and marketing rights to Artman Kish Motor Company.

Artman Kish Motor Company announced recently that it had been established as the official representative of Italian automaker Fiat in Iran with permits to assemble its selected models.

Rezaei further said the two would cooperate to produce 16 models of Fiat in the country, taking into account Iran’s domestic standards.

Fiat will import knock down (CKD) and completely build units (CBU) motor vehicles to Iran, he continued.

CBU would mean that the car is completely imported to Iran from the country of origin. CKD (Completely Knocked Down) would mean that certain parts of the car are shipped to the country of sale where they will be assembled to form a complete car.

Fiat, which controls Chrysler, and its subsidiary heavy-truck maker Fiat Industrial SpA halted sales to Iran in 2012 following similar moves by other carmakers under US pressure to cut ties with Tehran.

In 2015, Fiat announced its readiness for cooperation with Iran.