PSA announces Iran comeback thanks to a joint venture with Khodro
PSA Group has formalized its expected return in the Iranian market, long-penalized in recent years by international sanctions that had run off the active manufacturers in Iran.
The French company restarts where it finished in the Islamic Republic, with the joint venture with local Iran Khodro thanks to an agreement by about 400 million euros for five years signed in Tehran.
To sign the agreement the head of PSA operations in the Middle East and Africa, Christophe Quemard (along with Iran Khodro CEO, Yekeh-Hashem Zareh), who said he is proud of the newfound partnership that will allow the Group to consolidate its position not only in Iran, but also in the whole region of the Middle East and Africa.
Also a new industrial center in the suburbs of Tehran will be built for the production, starting from the second half of 2017, of the latest generations of Peugeot 208, 2008 and 301 (30% of which will be exported to neighboring markets) with the supply of most of the components by Iranian companies.
PSA and Iran Khodro aim to produce approximately 200,000 units a year by 2018. PSA becomes the first manufacturer to formalize the return to Iran after sanctions.
The French carmaker left the country in 2012 when it was its second largest market.