Autoneum of Switzerland Signs Deal With Mashhad-Based AKT

Swiss industrial group Autoneum Holding AG has signed a licensing and production deal with Iran’s Ayegh Khodro Toos (AKT).

Reuters reported the deal on Monday, saying that Autoneum has reached an exclusive license agreement with the Iranian automotive supplier AKT to produce and sell components in Iran.

As per the deal, carpet systems and inner dashes will be produced by AKT in the northeastern shrine city of Mashhad in Khorasan Razavi Province.

A memorandum of understanding was signed between the sides in Jan. 2016.

The locally-manufactured parts will be used by Iran Khodro for production of vehicles under a joint venture deal with French auto company Peugeot.

Reportedly, the parts are to be initially used in a sport utility vehicle manufactured under Peugeot-IKCO deal.

The likeliest candidate is Peugeot 2008, a French-derived SUV for which production lines were launched in March in Iran.

One of the hot topics about foreign automotive joint ventures is the export of  locally-manufactured parts and cars.

Through its joint venture deal with IKCO, the French carmaker has agreed to sell 30% of cars or parts made in Iran through its global sales network.

Moreover, law stipulates that in all new automotive agreements signed with foreign companies at least 40% of the vehicle parts should be manufactured in Iran.

The Autoneum-AKT deal can contribute to the implementation of the Peugeot-IKCO agreement because parts made of plastic have an obvious share in the production of vehicles.