Italy’s Fiat to be back in Iran: Official

Tasnim – The head of Iran’s Association of Automobile and Spare Parts Importers said Italy’s Fiat Chrysler Automobiles plans to resume its activities in Iran.

Speaking to the Tasnim News Agency, Meysam Rezaei pointed to Fiat’s recent moves to obtain necessary legal licenses to resume its activities in the country and said the Italian firm has reached an agreement with an Iranian automotive company.

The agreement stipulates that given the Fiat group’s technical know-how and ability to design and manufacture light commercial vehicles, the company grant exclusive rights for sales and after-sales service in the Iranian market, he added.

The official also said in the form of a partnership agreement with the Iranian company, Fiat can launch a joint production line and sell its products in Iran.

Iran’s automotive industry is the second largest in the country after its oil and gas industry, accounting for 10% of the country’s Gross Domestic Product (GDP).

Iranian automotive companies have enhanced cooperation with European firms, particularly the French ones, since implementation of the Joint Comprehensive Plan of Action (JCPOA), a nuclear agreement between Iran and the Group 5+1 (Russia, China, the US, Britain, France and Germany), which took effect in January 2016.

In June 2016, Iran’s leading vehicle manufacturer Iran Khodro and the French carmaker Peugeot-Citroen (PSA) agreed to launch a joint auto company in Tehran under a joint venture worth 400 million euros.