Industry

Iran and France Start New Era of Partnership in Car Industry

French media outlets reported that Iran and the French car manufacturer Renault have penned an agreement for restoring their cooperation in automotive industry.

According to a report by IRNA, as translated by IFP, Iran has opened a new chapter in cooperation with France’s automotive industry as Industrial Development and Renovation Organization of Iran (IDRO) inked an agreement with the French auto-maker Renault in 2016 Paris Motor Show.

The agreement was signed as Iran’s Minister of Industries, Mines, and Trade Mohammad-Reza Nematzadeh and Carlos Ghosn, the CEO of France-based Renault, were attending the show.

Based on the deal, Renault is supposed to build a factory in Iran with the capacity of manufacturing 150,000 vehicles per year.

The deal came after PSA Group, the French rival of Renault, on June 21 signed the final agreement with its “historic partner”, the Iranian auto-maker Iran Khodro Company, to produce Peugeot cars.

 

Europe 1 online radio website also reflected Iran’s agreement with the French car giant Renault, “For the first time in its history, Renault is to develop its distribution line and after-sales services with its own standards in Iran.”

Europe 1 added that “Renault will be the major shareholder of partnership with IDRO; since many years ago, this country has been a strategic market for the French automaker.”

Car Industry has grown considerably in Iran after the lifting of international sanctions following the nuclear deal between Tehran and world powers.

After the landmark nuclear deal in July 14, 2015, known as JCPOA, and before its implementation, authorities from around 100 French companies travelled to Iran in the first visit by the French Business confederation, commonly known as MEDEF, in August last year.

The United States Senate saw France as “the main loser due to sanctions against Iran” and announced that the trade turnover between the two countries has dropped from €4bn in 2004 to €500m in 2013. Therefore, France’s share of Iran’s market suffered a major decline from 7 to 1 percent.

IFP Editorial Staff

The IFP Editorial Staff is composed of dozens of skilled journalists, news-writers, and analysts whose works are edited and published by experienced editors specialized in Iran News. The editor of each IFP Service is responsible for the report published by the Iran Front Page (IFP) news website, and can be contacted through the ways mentioned in the "IFP Editorial Staff" section.

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