Iran interested in cooperating with German, Italian carmakers

Asre Khodro: Iran has given priority to cooperation with German and Italian carmakers rather than to the French Peugeot.

Thursday 10 September 2015 - 12:59:00

Iran interested in cooperating with German, Italian carmakers

Reporting "Asre Khodro", Iranian media reported that the country has suspended plans to cooperate with Peugeot and is instead preparing to take up talks with German and Italian auto majors to encourage them to invest in its car industry.

“Previously, everyone was expecting the signing of a cooperation agreement between Iran Khodro and Peugeot in light of the July nuclear breakthrough between Iran and the P5+1 group of countries,” wrote the Persian-language newspaper Donya-ye Eqtesad.

The daily added that however, it appears that Iran is already engaged in talks with more attractive partners.

Representatives from the French automobile industry were also striving to restore their previous share in the Iranian auto market.

French Peugeot wants to establish a 50-50 joint venture with Iran to produce cars. Iranian officials said the French auto giant is already in advanced stages of talks to provide automobile parts to the leading Iranian carmaker, Iran Khodro.

Speculation that Iran Khodro is preparing to sign a deal with Peugeot to launch a new joint venture in the country emerged in May. It had been reported then that serious talks to the same effect had taken place between the two sides in Paris.

Before sanctions, Peugeot held 22 percent of Iran's car market, but withdrawal from Iran caused huge losses for the company.

The French car manufacturer became the target of criticism in Tehran over its 2012 decision to withdraw its investments under U.S. pressure over disputes on Iran’s nuclear energy program.

“Iran Khodro had finalized its talks with Peugeot before March and was preparing to sign a JV deal with it upon the conclusion of nuclear talks between Iran and the P5+1,” wrote Donya-ye Eqtesad.

However, as the race has tightened for foreign automakers to access to Iran’s auto market, Iran Khodro suspended plans to team up with Peugeot and began talks with other companies including Germany’s Volkswagen, the daily added.

The daily noted this means that Peugeot is no longer a ‘key partner’ in the eyes of Iran Khodro leaders and they are now more inclined toward potential German and Italian partners.

German company Mercedes-Benz plans to purchase a 30 percent stake in Iranian Diesel Engine Manufacturing Company in order to produce automobiles in the city of Tabriz.

Iranian officials earlier said Volkswagen could become a reliable partner for Iran.

The automobile industry accounts for nearly 10 percent of Iran’s gross domestic product. The latest data shows that Iran ranks 18th on the list of the world’s top auto manufacturers. However, the country’s automotive industry needs modernization after years of sanctions.

Sanctions on Iran hit the automotive industry hard, slicing production by 1 million units from its peak of 1.6 million in 2011 and leading to 100,000 job redundancies.

Iran is one of the biggest producers of cars in the region.


برچسب ها

Iran Automotive Industry
مطالب مرتبط بیشتر
Construction of Chinese-Persian car in Semnan France to update firms on doing business with Iran S. Africa-Iran Business Forum Next Week Iran, Turkey to Hold Meeting of Joint Economic Commission Next Month French Businesses, Officials to Preempt American JCPOA Walkout Lack of Iran Khodro Capital Impedes Peugeot Plans Auto Parts Makers Demand Tougher Regulations on Imports Istanbul Automechanika Conference with the participation of the senior director of the exhibition European carmakers on the road back to Iran after nuclear deal Car from the new minister's perspective Iran Automakers Need Logistical Spread Iran Auto Output: All That Clamor for Naught French Leverage in Iran Auto Industry Iran Industrial Agency Kicks Starts Another Car Factory Iran Automotive Production Up 20% y/y With Sanctions Behind, Iran Looks Ahead Iran Carmakers Obliged to Offer 2-Year Guarantees Iran Auto Companies Not Raising Prices Iran to hit two car industry accords soon Turkey keen on investment in Iran's auto industry PSA to carry out Iran plans despite US threats Peugeot, Citroen Will Uphold Localization Segment in Iran Iran to release Euro V passenger cars next year Production surges in Iran's car industry Iran Khodro Group Retains 39% Market Share Iran to sign 5 auto deals with intl. companies by Mar. 20 Iran talks with Germany’s VW to produce passenger car Car Import only through Investment Iran’s Vehicle Initial Quality Study Released Iran has potential to be top-10 auto market by 2020 Iranian, Turkish companies discuss auto parts Coop. The 4th Vehicle Conference "Sales and After-sales Service Approach” Iran Car Sales Slump Despite Loans Iran’s Auto Import Report by MSD Iran Targets 80% Auto Localization Effects of Automotive Ties With China Faurecia builds on Iran ties to secure major deals - CEO Renault signs MoU with Iran to create new joint venture Peugeot to try for making Iran its manufacturing hub in Middle East, Africa Iran to ink new deals with foreign automakers Pakistan-Iran cooperation in auto sector discussed Iran to open car factory in Azerbaijan Auto Sector Recovery to Buoy Steel Consumption New Automotive Decisions Announced Iran's Automotive Advantages Friends with many benefits Encouraging foreign investment to revitalize Iran’s car industry - expert Iranian car output down 2.5% Y/Y Algeria-Iran: 15 cooperation and agreements for automotive industry Automotive Targets Highlighted How to seize Iran’s automotive opportunities VW In Iran Iran ranked 13th in world passenger cars sales of 2015 Bavaria eyes major auto supplier potential with Iran Plans Devised to Make Iran Region’s Top Automaker: Minister Iran Seeks Foreign Partnerships to Boost Auto Industry Volvo on the Final Decision to Manufacture Car in Chabahar 3rd Iran Automotive Industry Int'l Confab opens in Tehran Iran Inks 3 MoUs with Foreign Carmakers Iran signs three deals with foreign automakers Iran to become a hub for automotive manufacturing: OICA President Iran, Germany Ink MoU to Boost Cooperation in Automotive Industry How Iranian Cars Are Viewed Around the Region Peugeot to Compensate for Iran’s Losses in New Contract: Minister Minister Calls for Japanese Automakers’ Investment in Iran Iran seeking Japanese investment in autos, water Iran in Talks with Germany, Italy to Boost Cooperation in Automotive Industry Three Europe carmakers to return to Iran soon Iran to become world's 8th automotive manufacturer Iran suspends car loan programme on soaring demand Iran to export 30% of domestically produced cars French firms trail in economic rush to Iran - executive Nematzadeh defends automotive sector Changing Automotive Perception Italy to broaden cooperation on auto industry with Iran Iran: The next automotive hotspot in Middle East? Iran's car market ready to zoom in on the action Japan explores opportunities in Iran's auto industry Thailand hopes for boost in trade with Iran after sanctions get lifted
Back to top