Economy, Auto

Nematzadeh: Fiat Entry Unlikely

Nematzadeh: Fiat Entry Unlikely
Nematzadeh: Fiat Entry Unlikely

Chances of Fiat entering Iran are slim, said Iran's Minister of Industries, Mining and Trade Mohammad Reza Nematzadeh during his visit to Iran's pavilion at EXPO 2015 Milano.

As American automobile manufacturer Chrysler is a subsidiary of Fiat, this is likely to impede Fiat's cooperation with Iran, Eghtesad News quoted him as saying on Monday.   

"We are ready to cooperate with the Italian carmakers. However, if the company's ties with America are likely to impact business prospects, we'd rather enter into partnerships where chances of complications are not high," he said.

The minister, however, confirmed that Iran's leading vehicle manufacturer, Iran Khodro Company, is negotiating a deal with Fiat.

"Nevertheless, it is too soon to make assumptions about American companies entering Iran's auto market via proxies," he said.  

Nematzadeh confirmed that leading German auto manufacturer Mercedes-Benz has settled past debts with IKCO, "not in the form of money but by providing auto parts".  

Expo Milano 2015, which opened on May 1, will close on October 31. It is a global platform for the exchange of ideas and solutions among more than 140 participating countries.

The expo provided a suitable opportunity for Iranian and Italian business owners to interact on different levels and seek fresh avenues for economic cooperation.