Jul 23, 2016, 3:44 PM

Citroën to produce cars in Iran

Citroën to produce cars in Iran

TEHRAN, Jul. 23 (MNA) – Iranian industry minister has announced that new Citroën cars will be manufactured in Iran on the basis of a contract sealed with the French automaker.

Mohammad Reza Nematzadeh said Iran’s Saipa Automaker Company and France’s Citroën Automobile manufacturer have inked an agreement while Iran’s Ministry of Industry, Mine and Trade has delineated all policies related to technology transfer, design, engineering and exports.

“Also, framework of partnership between Saipa and Citroën has been signed and the final deal will be completed and inked within two months,” he continued.

The official said the partnership marks the second collaboration between Iranian and French companies after implementation of the Joint Comprehensive Plan of Action (JCPOA) adding “three new vehicles will be produced under the newly-signed agreement which will hopefully be released to market in less than two years.”

Nematzadeh emphasized the importance of joint investment as the best approach towards long-term and stable cooperation asserting “we believe that the two sides need to share their markets as the preliminary agreement enforces that 30 percent of joint products be exported by the French party in the first five years while a consensus will be reached for the new figure afterwards.”

He underlined that a clear plan has been envisaged for the French company to transfer necessary trainings at various levels of car and car part production upon which Iranian and French part manufacturers will conduct bilateral collaboration.

“Moreover, under the terms of the contract, a new enhanced engine will be manufactured by Citroën in Iran,” underscored the official stating that the process will begin in 2019 and majority of the engine parts will be produced in Iran by 2020.”

Iran’s industry minister went on to note that except for the first vehicle which will use pre-existing designs, other cars will take up new designs in order to produce and supply products in accordance with standards held in European countries.

HA/3720161

News ID 118296

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