Peugeot has agreed to Iran’s conditions: Iran Khodro chief

Following recent talks between the leading Iranian car manufacturer and some foreign automakers, SMT, a daily, filed the comments of the managing director of the Iranian corporation on the negotiations with foreign investors in a report on October 22. What appears below is the translation of part of his remarks:

Hashem Yekke Zare, the Managing Director of Iran Khodro Industrial Group (IKCO) elaborated on the conditions that Iran has set out for cooperation with foreign automaking corporations including France’s Peugeot and Renault and said, “Aside from investment in Iran, contracts should be drawn up in a way that won’t allow investors to leave Iran easily. Also if the products, manufactured as a result of mutual collaboration, hit the international market, Iran should have its share of the sales. Another thing is that the contract should envision the opening of a research center in Iran.”

In terms of the recent directive issued by the Ministry of Industry, Mines and Trade on cooperation between national and foreign automakers, he said, “What conditions Iranian automakers will lay down depend on the kind of investment between the two sides. The number of cars that will be produced could also play a key role. Based on these two factors, the directive of the ministry can be implemented.”

“As far as cooperation with foreign automakers is concerned, the Iranian car maker has its sights on joint ventures. In our recent talks with Peugeot and Renault, we have put forth some pre-conditions,” he said.

“In the new contracts we are going to sign with foreign corporations, we will definitely take national interests into account. In line with such objective, an investment of 50 percent by either side has been floated with Peugeot. However, the percentage of each party’s share might undergo some changes and turn into a share of 40-60 or 30-70 percent based on the contract, the number of cars produced and the kind of investment. Therefore a certain figure cannot be considered for investment as far as cooperation with foreign corporations is concerned. In fact, the number will be subject to change, because terms of the contract will finally specify it,” Yekke Zare highlighted.

When asked if foreign automakers which are in talks with Iran have accepted such preconditions, he said “Peugeot has agreed to them. Nevertheless, I should underline that the kind of financial cooperation with foreign automaking manufacturers could be different based on the number of cars produced and the kind of cars that roll out of the plant.”