Economy, Auto

Peugeot Accepts Iran Khodro Conditions

Peugeot Accepts Iran Khodro Conditions
Peugeot Accepts Iran Khodro Conditions

Peugeot has officially agreed to Iran Khodro Company’s conditions for resuming mutual cooperation, Hashem Yekezare announced on Sunday.

“Creating a joint venture with each of the two companies holding a 50% stake, turning Iran into a regional export hub for Peugeot and transferring technology and investment are among Iran's conditions for resuming cooperation with Peugeot,” Yekezare was quoted as saying by Tasnim News Agency.

In a meeting back in mid-July, Yekezare and Jean-Christophe Quemard, vice president and a member of PSA Peugeot Citroen managing board, had discussed undertaking comprehensive joint ventures and exports.

At the meeting, Quemard emphasized that PSA Peugeot Citroen is determined to actively participate in the Iranian market, making it a gateway to the region.

During the meeting, the two sides also secured an agreement on equipping IKCO’s products with eco-friendly engines.

With its two world-renowned brands, Peugeot and Citroen, PSA Peugeot Citroen sold 2.8 million vehicles worldwide in 2013, 42% of which were outside Europe.

The second largest carmaker in Europe, PSA Peugeot Citroen recorded sales worth €54 billion in 2013.

The French carmaker withdrew from Iran in 2012. Peugeot was lured into leaving Iran by General Motors with promises of a share in its market which the Detroit-based company did not live up to.