Speaking on the ceremony for unveiling new product of the company, Hashem Yeke Zare said that Peugeot should pay for breaching its contract with Iran Khodro and the company has claimed 150m euros in damages.

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He added that in this unilateral breach of the contract this was the French side which was a loser, adding that one of the main parts of cars has been manufactured by young Iranians whose result will be unveiled by October.

Yeke Zare added that IKCO wants to become a car-making company and it relies on the domestic knowledge-based companies and Iranian talents.

He added that after the JCPOA, the company signed a good contract with Peugeot, adding that due to the previous unsuccessful contract with Renault company, this time IKCO signed a wise and better contract with Peugeot and manufacturing of major parts of the vehicles were decided to be manufactured domestically. He went on to say that after Peugeot pullout of the contract, activities for manufacturing cars continued without any halt.

Yesterday and in a ceremony, Peugeot ‘301’ production line was inaugurated in Iran Khodro Industrial Group (IKCO) in the presence of Vice President for Science and Technology Sorena Sattari.

Accordingly, 60 percent of parts needed for manufacturing Peugeot 301 will be provided through domestic production, expandable to 80 percent in upcoming programs, VP Sattari said, adding, “some 300 Iranian parts suppliers have been employed for manufacturing parts of this passenger car.”

He went on to say that Peugeot 301 sedan fully observes requirements of international standards.

Peugeot 301 is manufactured in IKCO while France’s Peugeot Company left Iran in the wake of U.S. sanctions, he said, adding, “earlier, it was supposed that all parts and equipment needed for manufacturing this passenger car would have been provided by French companies.”

After France’s Peugeot left Iran, this giant project was handed over to domestic manufacturers, the vice president added.

According to the scheduled program, Peugeot 301 passenger car will hit the domestic car market by the yearend.

Some 2,123 parts are required for manufacturing this passenger car, 565 of which have been indigenized by Iranian manufacturers, Vice President for Science and Technology added.