Economy, Auto
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Car Firms Rush for VW Linkup

Car Firms Rush for VW LinkupCar Firms Rush for VW Linkup

Iran's state-owned and private automotive firms have begun racing against each other to have a business linkup with German vehicle manufacturer Volkswagen.

Trusted sources have reported that 250 requests have been dispatched by Iranian auto companies, Eghtesad News reported.

Aside from leading carmakers, such as Iran Khodro Company and Kerman Motor, other firms vying for auto assembly and import deals with VW include Atlas Khodro, Asan Motor and Mammut Group among many more.

Decades-old trade and financial restrictions were officially lifted against Iran on Saturday, six months after the Persian Gulf country reached a watershed deal with six world powers (the five permanent members of the United Nations Security Council plus Germany) on getting sanctions relief against temporary curbs on its nuclear program.

The implementation of the nuclear deal, officially known as the Joint Comprehensive Plan of Action, means Iran can reach out to the outside world and do business with international companies without the fear of violating sanctions.

Among the auto firms, IKCO had previously been negotiating a deal with VW and is likely to start the production of some models made by the brand's subsidiary firm Skoda. However, news on that tie-up quieted down in recent months.

Prior to the imposition of sanctions, Kerman Motor, was producing VW's hatchback model, the Brazilian-designed Gol, in Iran. It played a key role in improving auto manufacturing standards at the company.

Financialtribune.com