According to Iran Daily, which quotes the chairman of the Iran-Italy Joint Chamber of Commerce, FCA is to set up a joint venture with Iran Khodro.

"No deal has been sealed yet but the talks have had satisfactory progress and will hopefully result in the initiation of favourable mutual cooperation," Ahmad Pourfallah is quoted as saying.

"It has been stipulated in the negotiations that Fiat's new cars will be produced in Iran and exported to the regional countries. The deal is aimed at joint production rather than imports," the chairman added. "It has been agreed that Fiat will be in charge of transferring technology and information to Iran; while, Iran will supply human forces and energy. However, the amount of investment is still under negotiation," Iran-Italy chamber's president further stated.

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