Renault has signed a deal with Iran to build its no-frills Logan (L90) car in the Islamic Republic, a Reuters reporter at the signing ceremony said on Wednesday.
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Iranian analysts reportedly have speculated that Renault’s investment could total $US2bn. According to the news agency, French analysts say the investment would be several hundreds of millions of euros in the initial stage, while Renault has said it has only invested EUR70m ($89.8m) so far.
Renault signed an overall master plan for the project at the ceremony, as well as licensing and other associated agreements, the report said.
“Renault-Pars should pledge itself to export at least 20% of the cars manufactured,” a joint statement, which was read out at the signing ceremony, said.
Reuters noted that Renault has complained that Iran is not a member of trade pacts with neighbouring countries, meaning exports to those states would be hit hard by tariffs.
Analysts reportedly had warned that any suspension of the L90 project amid mounting global tension over Iran’s nuclear programme would undermine already ailing foreign investment in the country, where around 850,000 new jobs are needed every year.
Renault has said that it plans to produce 250,000 Logan cars a year in Iran from 2008, nearly a third of its worldwide sales target of 800,000 cars by 2009.
