PSA Peugeot Citroen says it is ready to start working with Iran Khodro (IKCO) to produce vehicles in the country, should nuclear talks between Tehran and the West succeed.
Any resolution of the years-old stand-off between Tehran and a collection of capitals from London to Paris and Washington would mark a momentous shift in Iranian automotive manufacturing, which has consistently struggled against a raft of sanctions imposed on it as a protest against its supposed enrichment of uranium to develop nuclear weapons.
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Despite vociferous opposition from Israeli Prime Minister, Benjamin Netanyahu and some hawkish Republicans in the US, the recent crunch meeting between the P5+1 (UK, France, US, Germany, China, Russia and the European Union) and Iran in Lausanne nonetheless tentatively moved to an agreement which could see sanctions lifted by June this year.
“We are working with Iran Khodro to define a partnership with them, but it is not signed yet,” a PSA spokeswoman told just-auto from Paris. “There are many conditions to fill before.
“We are ready to be working with them – we have been working on a project. It will be vehicles such as the 301, 208 and 2008 under review right now, B & C segment vehicles. That is local production.”
PSA used to supply CKD cars to Iran, but sanctions hitting the banking sector made shipping problematic.
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By GlobalData“We have stopped CKD – what we had was sending replacement parts but…there is no financial link between Iran and the rest of the world,” added the PSA spokeswoman.”
The P5+1 group insisted a “decisive step” had been taken and that solutions on key parameters to the Joint Comprehensive Plan of Action (JCPOA) had been reached in Switzerland.
A new United Nations Security Council Resolution will endorse the JCPOA, terminate all previous nuclear-related resolutions and incorporate certain restrictive measures for a mutually agreed period of time.
“We will now work to write the text of a Joint Comprehensive Plan of Action including its technical details in the coming weeks and months at the political and experts levels,” said a joint statement from the European Union High Representative, Federica Mogherini and the Foreign Minister of Iran, Javad Zarif, as well as their counterparts in the P5+1 body.
“We are committed to complete our efforts by 30 June.
“An international joint venture will assist Iran in redesigning and rebuilding a modernised heavy water research reactor in Arak that will not produce weapons grade plutonium. There will be no reprocessing and the spent fuel will be exported.”
The Israeli Prime Minister said his Cabinet was united in strongly opposing the proposed deal.
“The deal would not shut down a single nuclear facility in Iran, would not destroy a single centrifuge in Iran and will not stop R&D on Iran’s advanced centrifuges,” said Netanyahu.
A spokesman for Iran Khodro in Tehran confirmed to just-auto it was in talks with PSA to establish a joint venture.
