IRAN NEWS ECONOMIC DESK

He added that in order not to repeat the past mistakes in privatizations, the government is working to downsize both companies and then to hand over it to the private sector.

He reiterated that the government is not interested in running businesses and it backs privatization.

Rahmani also criticized French giant auto-makers Peugeot and Renault for breaching their contracts after the U.S. sanctions, adding that the country is now seeking to find new foreign partners. He reiterated that both French companies will have no room in Iran’s auto industry any longer in case sanctions are lifted.

He went on to say that soon domestic car-makers will present their export-quality products to the market, adding that they have an eye on exports.

Rahmani stipulated that Iran will definitely sue both French companies and will go for getting damages for breaching the contracts.

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IRAN NEWS ECONOMIC DESK

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.

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As he added, ICKO has indigenized production of an auto part and will unveil it in early autumn. As Yeke Zare described, IKCO is the first Iranian car company who has been able to manufacture this auto part.

He, elsewhere, said that in Peugeot ‘301’ production, IKCO is employing the technology that PSA Peugeot Citroen has brought to Iran although the French automaker has left the country in light of the US sanctions.

The IKCO chief said his company tries to continue producing the cars that were to be manufactured jointly under the contract with Peugeot even if the French side does not agree to keep the agreement.

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.

In June 2016, Iran Khodro and the French carmaker Peugeot-Citroen (PSA) agreed to launch a joint auto company in Tehran under a joint venture worth 400 million euros.

But in 2018, the French company reneged on the agreement and decided to obey the US sanctions against Tehran by leaving Iran.

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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 US 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.

The post Peugeot ‘301’ production line inaugurated in IKCO appeared first on Iran News Daily.

Iranian Deputy Industry Minister Mohsen Salehinia pointed to Peugeot’s refusal to work with Iran under a new wave of US sanctions, saying the French company must pay penalty for cancelling its contract with Iran.

Peugeot must also fulfill its commitment to supplying Iran with the Peugeot 2008 components and providing after-sale services, since the vehicles have been presold in Iran, he added.

According to Salehinia, the French auto-manufacturer has said it will suspend, not terminate, cooperation with Iran in the hope that partnership will resume in future.

Even if the French company intends to provide Iran with a series of car components, the other countries manufacturing various auto parts would refuse to work with Iran, the deputy minister explained.

Back in June, French automaker PSA Peugeot Citroen announced plans to pull out of two joint ventures to sell its cars in Iran in order to avoid the risk of US sanctions.

The retreat followed similar moves by French energy companies Total SA and Engie SA in the wake of US President Donald Trump’s move to pull his country out of the 2015 Iran nuclear deal and re-impose sanctions on Tehran.

In July, the US administration rejected France’s demands for a waiver or exemption for companies seeking to do business in Iran.

Even companies with no business ties to the US find it difficult to operate in Iran because banks are reluctant to finance Iranian operations.

After achievement of the Joint Comprehensive Plan of Action (JCPOA) between Iran and the Group 5+1 (Russia, China, the US, Britain, France and Germany) in July 2015, PSA Peugeot Citroen signed a deal with an Iranian company to make cars in the Islamic Republic.

The post Peugeot Should Pay Penalty for Pullout from Iran appeared first on Iran News Daily.

Chief Executive of Iran Khodro Industrial Group (IKCO) Hashem Yekehzare denied any talk with Italy’s FIAT Automobiles and said that France’s PSA has not yet announced its exit from Iran’s lucrative car market officially.

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