Economy, Auto

Top Private Players in VW Race

Top Private Players in VW RaceTop Private Players in VW Race

Three of the most prominent trading families in Iran have dispatched requests to Volkswagen in hopes of obtaining legal representations of the German brand while others hope the carmaker would set up production lines in Iran.

The names of the three families are Ferdows, Gerami and Deylami who are owners of Mammut Group, Golestan Company and Goldiran respectively, Eghtesad News reported.

The manufacturer and importer of heavy-duty vehicles, Mammut has reportedly been negotiating a deal so that VW would start manufacturing vehicles in Iran.

Golestan Company is a major producer of foodstuff, but the Gerami family has been importing cars manufactured by South Korea's Hyundai and Kia via local auto firms Atlas Khodro and Asan Motor.

According to an unnamed source, they have the contract for Range Rover. The successful experience with other brands seems to have prompted the family to also try to win a deal with VW.

The Deylami family running the brand Goldiran—the official representive of South Korea's LG home appliances—has also been importing cars from the Chinese brand MG.

Iranian state-owned and private automotive firms started racing against each other for a business linkup with VW, after decades-old trade and financial restrictions were officially lifted against Iran on Jan. 16.

Sources had reported that 250 requests were dispatched by Iranian auto companies, including major players such as Iran Khodro Company and Kerman Motor.

Some critics believe a private family dealer monopolizing a company like Volkswagen could restrict its accessibility in the Iranian market, as the local partner could hike up prices for local consumers.

Whereas if the European company were to partner with one of the large nationalized manufacturers, they could be assured of high volume production and pass on the savings to car buyers in Iran.