Iran Khodro (IKCO) says as well as parallel negotiations with PSA to set up a new joint venture, it is also in talks with a “popular” Western company as it looks to rapidly capitalise on what appears to be a dramatically improving sanctions landscape.
The automaker – in common with multiple Iranian manufacturers – has been severely hampered due to the raft of sanctions imposed by the West but recent nuclear talks in Switzerland between Tehran and the P5+1 group could pave the way for a normalisation of international relations as early as this June.
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Only yesterday (8 April), PSA Peugeot Citroen confirmed to just-auto it was ready to start working with IKCO to produce vehicles in the country as opposed to its previous CKD shipments, while the Iranian producer is now eyeing further Western cooperation.
“There are some negotiations between IKCO and Peugeot – also…between IKCO and some other new players,” an Iran Khodro spokesman told just-auto from Tehran. “We can not mention their name but there are some new players.
“Our new player [is a] Western company – they are from a European country – it is a popular [major] company. I think the Iranian government, they are very eager to finalise the [production] agreement.
“I know the market in Iran is very, very eager to see new products, especially from European countries.”
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By GlobalDataPSA says it could produce vehicles such as the 301, 208 and 2008 in Iran as opposed to its former CKD operation, with IKCO adding this could now take the form of a 50:50 joint venture.
“Before Peugeot just gave us some CKD parts and also SKD to produce cars,” said the ICKO spokesman. “But now the cooperation is a new one and PSA is going to invest in Iran – we don’t know [how much]. It depends on the capacity and structure of the company they are going to establish.
“After this result of the negotiations between Iran and the P5+1, there will be a new incentive in motion from Peugeot to finalise negotiations. IKCO told them [PSA] if we are going to continue our cooperation, there will be new conditions and this condition will be Peugeot is supposed to invest to bring money to Iran’s automotive industry.”
The IKCO spokesman added the Iranian manufacturer was also aiming to increase its production of parts from 50% to 90%, although no timetable has yet been established for the goal.
However, Iranian President, Hassan Rouhani is insisting any deal with the West would not be ratified unless economic sanctions are lifted on the actual day any agreement is inked.
“We will not sign any agreement unless the whole economic sanctions are terminated on the very first day of implementation of the deal,” said Rouhani.
“Our nation will keep to the path to scientific development. As mentioned explicitly by our… negotiators in hundreds of meetings, we will not relinquish peaceful nuclear technology.”
The P5+1 group maintained a “decisive step” had been taken and solutions on key parameters to the Joint Comprehensive Plan of Action (JCPOA) had been reached in Switzerland.
