FCA, PSA and Renault could close deals over a re-enter on the Iranian market image

The Iranian President’s European tour might lead to a series of partnerships, or at least explore this possibility, involving Fiat Chrysler Automobiles, Peugeot-Citroen and Renault.

Iranian President Hassan Rouhani has just started its first European tour, arriving on Monday in his first stop in Italy, where he will attend a ceremonial dinner at which the Fiat Chrysler CEO Sergio Marchionne will also be present. Rouhani may sign deals valued at about 17 billion euros (18.4 billion dollars) in Italy, according to an official there who asked not to be identified because the information is not public. Marchionne has already said he sees opportunities on the Iranian market once an international legal plan for restoring business will be implemented. The automaker has held talks about building light-commercial vehicles and buses in Iran, the state-run Islamic Republic News Agency reported back in November, citing Mohammad Reza Nematzadeh, minister for industry, mines and trade.

After the Italy stop, Rouhani is set to travel to Paris tomorrow for a meeting with President Francois Hollande, where he may also sign deals with PSA and Renault, according to Iranian reports. Peugeot-Citroen said last year it was struggling to close an agreement for rekindling collaboration with former partner Iran Khodro, country’s biggest automaker, because Peugeot’s abrupt 2012 exit affected its image. However, it seems the disagreements were left behind, as Khodro reached a preliminary agreement for a 500-million-euro joint venture with PSA, the Tasnim news agency reported Sunday, citing an unidentified industry official.

Via Bloomberg