Economy, Auto

Deputy Minister Defends Peugeot-Iran Khodro (IKCO) Contract

Deputy Minister Defends Peugeot-IKCO ContractDeputy Minister Defends Peugeot-IKCO Contract

The contract between Iran and France’s Peugeot “is a joint venture which is owned 50% by Peugeot and 50% by Iran Khodro Company,” (dubbed IKAP) said Mohsen Salehinia,  the deputy minister  of industry, mine and trade, according to a report by Nasim Online.

“We imported some Peugeot models before and later tried to increase its domestic production. Now we have a joint company with Peugeot to manufacture up-to-date models,” he noted.

“We have had no better contract than this one in the history of  automobile manufacturing in Iran,” the news agency quoted him as saying.

As per the contract, joint production will start for the 208, 2008 and 301 models and will be extended. Domestic production starts from 40% and will reach up to 75%. “We will export 30% of the cars, and have a joint R&D with Peugeot.”

Salehinia went on to say that Iran did not give preference or priority to Peugeot, and Iranian automobile manufacturers can sign contracts with any foreign company “if it is beneficial for them.”

He also referred to the possibility of the impact of Donald Trump’s election as US president on foreign firms’ decisions to cooperate with Iran.

So far “I have heard nothing about Trump’s effect on the entry of foreign automobile manufacturers into Iran.”

Political changes like Trump’s shock election victory have no effect on technical and operational aspects of contracts, unless major global policies are affected, the senior official said.

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