PSA wants Iran to become export hub following nuclear agreement image

France’s PSA Peugeot Citroen, the second largest European automaker, mulls exports of vehicles produced in Iran together with joint venture partner Iran Khodro, according to a top company executive.

The automaker’s senior manager for the region said the company wants Iran to become an export hub as the French carmaker seeks to reestablish its business in the country after a diplomatic arrangement was reached last week and economic sanctions over Iran’s nuclear program were lifted. “We plan to establish local production in order to export cars from our JV [joint venture] factory,” commented PSA chief of Middle East and Africa Jean-Christophe Quemard. PSA last exported complete knockdown (CKD) versions of its rather obsolete Peugeot 206 and 405 models to Iran Khodro in 2012 under pressure to respect the sanctions from then stakeholder General Motors – which has since divested its 7 percent holding in PSA. Both European and US automakers ceased any business relations in Iran as the automobile industry was included in the economic sanctions.

PSA has said it plans to expand its presence there by investing into a local plant to make current-generation models for the Iran market and export regions, but refrained to name the other countries. Today, Iran Khodro delivers Peugeot vehicles to Azerbaijan, Iraq, Armenia, Uzbekistan, Turkmenistan, Syria and Afghanistan, if we believe a report from Iranian news network Press TV. The report also stated PSA and Iran Khodro would partner in a 50-50 joint venture plant that would deliver 30 percent of its production overseas.

Via Automotive News Europe