News ID: 255071
Published: 0244 GMT June 30, 2019

Iran defense industry to aid car project abandoned by Peugeot

Iran defense industry to aid car project abandoned by Peugeot

Iran’s defense industry is to offer expertise to save a major car project which suffered after the France-based company, PSA Peugeot Citroën, left the country under pressure of sanctions from the United States.

Sources close to the car industry in Iran said that the defense sector in the country had become involved in attempts to make electronic parts needed for production of Peugeot 301, a project that stalled three years ago after Peugeot withdrew from its partnership with Iran Khodro Company (IKCO) citing US sanctions on Iran’s nuclear program, reported Press TV.

“There have been good negotiations with the Ministry of Defense,” said Maziar Biglou, the secretary general of Iran’s association of parts makers. “There is good infrastructure in defense industries in the production of electronic items like integrated circuits and special transistors.”

Based on a deal signed in January 2016, Peugeot was supposed to invest up to €400 million over a five-year period to produce, launch and market three of its models, including the 301, through a joint venture with IKCO.

However, in June of the same year, the company announced that it would pull out of the partnership due to fears about American sanctions. Iranian officials said at the time that Peugeot would pay compensation to IKCO for the sudden withdrawal.

Biglou said Iran was now capable of covering around 80 percent of the knowledge and infrastructure needed for the production of Peugeot 301 on its own.

He said companies in the mining sector were also helping IKCO to produce metals with special alloys that are needed in the manufacturing of the car.

Reports earlier in June suggested that IKCO had begun testing Peugeot 301 on the road, while others said some 3,000 units of the car would be available in the Iranian market as of December, 2019, with a price tag of around two billion rials ($15,000).

IKCO has yet to announce whether it would keep the word ‘Peugeot’ for the compact sedan despite objections raised by the French company that none of its brand items, including its logo, should be used on the car.

 

   
KeyWords
 
Comments
Comment
Name:
Email:
Comment:
Security Key:
Captcha refresh
Page Generated in 0/0669 sec