"Definite need for suppliers in Iran" - FKG MD Fredrik Sidahl

"Definite need for suppliers in Iran" - FKG MD Fredrik Sidahl

Scandinavian automotive supplier body, FKG, says between eight and 12 companies are provisionally booked on its delegation to visit Iran next year.

The visit will be timely as Scandinavia looks to revive historic business ties with Tehran and as temporary sanctions relief for the automotive industry appears to have been extended following recent agreement in Vienna to continue nuclear talks for a further seven months.

Automotive has been exempted from some of the West's harshest targeting and FKG is clearly eyeing opportunities for its members along the lines of French counterpart, FIEV, which has already visited Tehran.

"We are sort of not last on the ball, we could be the first to investigate the possibility [with] French companies and a few German as well," FKG managing director, Fredrik Sidahl, told just-auto from Sweden.

"This was a great market for Sweden - most of the companies would like to get it back. It was a great market for Volvo Trucks and now Scania is operating there.

"There is a definite need for suppliers in Iran. Scania Trucks is there now, but I don't know under what circumstances. We have a provisional list of companies - it could be eight to 12 companies. It [visit] is supported by the Swedish government.

"I also checked with the Foreign Office in Sweden to see if there are any restrictions, but the answer was no."

FKG's plan to take its own delegation of suppliers to Iran, will form part of the association's 'Go Global' series of member visits that has already taken in Brazil, China and Russia.

The Scandinavian supplier body held a seminar prior to its Annual Forum in Gothenburg two months ago, titled: 'Iran - New 'Old' Market,' which was addressed by Scandinavian-Iranian Chamber of Commerce (SIC) board member, Robert Sundqvist.

"Scandinavia and Sweden [have] one advantage and it is the level of trust and quality," said Sundqvist. "We are working with Iranian car manufacturers and we know who is looking for a CKD licence.

"After two years you will have started CKD operations - it is ambitious but it will happen.

"It is just a question of whether it is Swedish or French companies doing it. Already today, we are working on improving trade between Iran and Sweden. As long as you follow the rules, you are today able to do a lot of business."