Iran using Peugeot’s technology despite its pullout

Tasnim – CEO of Iran’s major car manufacturer Iran Khodro (IKCO) said his company is employing the technology that PSA Peugeot Citroen has brought to Iran although the French automaker has left the country in light of the US sanctions.

Asked by reporters about the damage to Iran’s national interests after Peugeot’s violation of an agreement with Iran Khodro and its decision to leave the country, Hashem Yekke Zare’ said on Monday, “Peugeot came to Iran and brought money, as the company’s investment is still available in Iran.”

He also noted that the French automaker exported car manufacturing technology to Iran, which is now being used in the car industry.

The IKCO chief said his company tries to continue producing the cars that were to be manufactured jointly under the contract with Peugeot even if the French side does not agree to keep the agreement.

In June 2016, 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.

But in 2018, the French company reneged on the agreement and decided to obey the US sanctions against Tehran by leaving Iran.