MP: IDRO-Renault Agreement Illegal

A member of Majlis Industries and Mining Commission has pressed for releasing the details of the new contract signed by the Industrial Development and Renovation Organization of Iran with Renault. Hamidreza Fouladgar has also said the agreement signed between IDRO and Renault is against the law, Persian Khodro reported. “The law stipulates that in any new agreement signed with foreign companies, local companies must be used and technology transferred. As a developmental company affiliated with the government, IDRO cannot directly attempt to sign a contract with a foreign company,” he said. “Local auto manufacturers must enter into negotiation with foreign firms and sign contracts and involve local auto part manufacturers.” Fouladgar stressed that the contracts must clearly state what percentage of the cars will be made. “If the terms of the contract are not clarified, it can be assumed that Iran has only paved the way for importing old cars and transferring outdated technologies while investing a 40% share,” he said.