Louis Schweitzer, chairman and CEO of Renault, and R. Veyseh, chairman and CEO of Idro (Industrial development and renovation organisation of Iran) have signed a letter of intent signalling the start of negotiations to create a joint venture company.

The project envisages manufacturing and selling a car model, currently known by the codename X90, being developed by Renault.

Iran has an established car industry and supplier network and the market has steadily increased over the last three years to 450,000 cars in the fiscal year 2002-2003.