25 Apr 2024
Tuesday 8 December 2015 - 18:15
Story Code : 191876

Three Europe carmakers to return to Iran soon

Three automakers from Sweden, Germany and France will resume operations in Iran when a July nuclear accord goes into effect, Industry Minister Mohammad Reza Nematzadeh says.

Iran is also in talks with Italian and Japanese carmakers for cooperation but they still have to reach an agreement, he told reporters on the sidelines of an Iran-Finland trade forum in Tehran Tuesday.

We have signed MoUs with France, Germany and France. We will also cooperate with Italy and Japan but we are still in early stages with these two countries, Nematzadeh added.

The minister did not name the companies but Frances Peugeot, Germanys Daimler and Swedens truck and bus producer Scania have been cited in a pole position for resuming operations in Iran.

Last month, Iran Khodro Managing Director Hashem Yekke-Zare said his company and PSA Peugeot Citroen had agreed on a 50-50 venture worth 500 million euros for production of cars in Iran.

The French manufacture faces a backlash from its abrupt pullout from Iran in 2012 amid calls for compensation. Yekke-Zare said the issue of reparations had been resolved without giving details.

Meanwhile, Daimler AG's commercial vehicles division said it intended to open a representative office in Iran as soon as possible and was in talks with potential partners in Iran to resume production in the country.

In August, Yekke-Zare said his company and Daimlers subsidiary Mercedes-Benz would sign a deal "soon for production of luxury cars and commercial vehicles.

The German company reportedly intends to buy 30% of shares in the Iranian Diesel Engine Manufacturing (IDEM) in Tabriz to build diesel engines.

European automakers are in a race for fresh inroads into the country of 80 million people which is being promoted as the regions biggest automotive market.

[caption id="" align="alignnone" width="650"] A Scania bus in Iran[/caption]

Last week, Swedish Minister for Enterprise and Innovation Mikael Damberg visited Tehran at the head of a delegation of the countrys leading traders.

Nematzadeh said the two sides agreed to jointly produce passenger buses in Iran.

Scania AB officials and Swedens biggest companies and banks, including telecommunications firm Ericsson AB, have said they wanted to invest in Iran when sanctions are lifted on the country.

If and when it takes off, Iran can be a significant market for Scania," the companys spokesman Hans-Aake Danielsson was quoted as saying in October.

By Press TV
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Guus
The commercial vehicle industry has been always big in Iran. From commuter transportation to trucking I think the volkswagen group with Scania and Man can make significant contribution for this sector. Also Daimler Benz is big in this area as well. France are also strong in this area. The main thing I hope Iran keeps in mind is to try to build or assemble these vehicles in Iran, or at least build the parts and become a strong supplier in this area. This will all translate into more employment for Iranians and improving their quality of life.