Media Wire

Iran, Renault Sign Biggest-Ever Car Deal

Iran has inked a historic car deal with the French auto manufacturer Renault in Tehran. Based on the new contract, the French side will produce more than 150,000 cars a year in the country.

The value of the agreement, which was signed after 10 months of negotiations, would be €660 million.

Based on it, Renault would team up with Iran’s Negin Khodro and the Industrial Development and Renovation Organization (IDRO) to produce the latest versions of Symbol and Duster brands of the French automaker from 2018.

“Sixty percent of the shares of the partnership would belong to Renault and the rest to Iran,” the domestic media quoted IDRO Chairman Mansour Moazzami as saying. “From the total of 40 percent of Iran’s shares, 20 percent would belong to IDRO and the remaining to the private sector (Negin Khodro).”

Iran’s IRNA news agency reported that the agreement also envisaged the establishment of an engineering and sales center in Iran.

Moazzami further emphasized that Renault would be obliged to export 30 percent of the manufactured items which he said would include cars and parts.

The official further added that the agreement with Renault included a second phase which was yet to be finalized and concerned production of cars in Iran from 2019.

Renault’s key rival PSA had also signed a deal with Iran’s biggest automaker Iran Khodro in June 2016 to produce 200,000 Peugeots a year in the Islamic Republic. It had signed another deal with Iran Khodro’s chief competitor SAIPA to produce a similar number of Citroen cars.

Iran’s overall car production is expected to reach two million cars a year by 2020, up from 1.2 million in 2016.

IFP Media Wire

Reports and views published in the Media Wire section have been retrieved from other news agencies and websites, and do not necessarily reflect the opinion of the Iran Front Page (IFP) news website. The IFP may change the headlines of the reports in a bid to make them compatible with its own style of covering Iran News, and does not make any changes to the content. The source and URL of all reports and news stories are mentioned at the bottom of each article.

Recent Posts

US suggests Ukraine consider ceding territories: El Pais

US President-elect Donald Trump has sent a message to Ukrainian leader Volodymyr Zelensky, asking him…

53 minutes ago

Iranian official touts  blanket removal of internet filtering, dismisses step-by-step plan as ‘ineffective’

A member of Iran’s Supreme Council of Cyberspace has voiced his opposition to the government's…

54 minutes ago

Sacked Persepolis coach Garrido bids emotional farewell

Juan Carlos Garrido, the former head coach of Persepolis, shared an emotional farewell message on…

2 hours ago

Sanctions against Syria must be lifted ‘as soon as possible’: Turkish FM

Ankara has called for the anti-Syria sanctions to be lifted "as soon as possible" as…

2 hours ago

Yemen’s Houthis claim downing US F-18 fighter jet

The Houthis in Yemen have claimed that they have successfully thwarted a joint American-British attack…

2 hours ago

Historic all-Women flight lands in Mashhad

For the first time in Iran's aviation history, a flight carrying an all-female crew and…

14 hours ago