European automakers have started cooperation with Iranian car makers following the removal of sanctions in January.
French automaker Peugeot-Citroen (PSA) signed a preliminary agreement to invest over €300 million ($330 million) to manufacture and sell the company's Citroen cars in Iran, the French automaker announced on Thursday, dw.com reported.
The preliminary agreement is the automaker's latest and biggest step in its return to the Iranian market. "Our aim is to provide our Iranian customers with modern vehicles that meet the highest comfort, safety and technology standards," PSA Chief Executive Carlos Tavares said in a statement.
The joint venture with SAIPA — the carmaker's partner in Iran prior to the sanctions — will grant each company a 50-percent stake. PSA will manufacture the cars at a plant in Kashan, Isfahan Province, and hopes to have the first batch of Citroens completed by 2018.
The SAIPA-PSA venture aims to produce 150,000 cars per year in five years and will include three Citroen models which have been specifically designed for the Iranian market, PSA said.
The preliminary agreement follows a deal PSA made last month with its former partner Iran Khodro. The €400-million agreement would see the partners build 200,000 Peugeot vehicles per year by 2018.
PSA was one of the first Western carmakers to announce a return to the country when numerous economic sanctions against Iran were lifted in January, following a landmark nuclear deal with P5+1 group.
Iran Khodro, Mercedes-Benz ties
Also, Managing-Director of Iran Khodro said on Friday that a cooperation contract between his company and Mercedes-Benz is nearly finalized and will be signed within two months.
Speaking at the general meeting of Iran Khodro shareholders, Hashem Yekkeh Zare said that based on the new contract, the two automakers will set up two joint companies.
He said that one of the joint companies will be a production site while the other one will be involved in sales and after-sales services.
In the production site, Iran Khodro will have a 51-percent share and Mercedes-Benz will hold 49 percent share, Yekkeh Zare said, adding that in the second joint company, Iran Khodro will have a 49-percent shares, while 51 percent of the shares will go to Mercedes Benz.
