The amount of the compensation which French auto manufacturing company Peugeot-Citroen PSA should pay Iran is over 200 million euros, Hashem Yekeh Zareh, the CEO of Iran Khodro Industrial Group (IKCO) said.

Yekeh Zareh said that that a supportive-compensational package is forecasted in the Peugeot- IKCO recent deal, Iran’s Tasnim news agency reported Feb. 7.

He further said that the package envisages cash payment for compensation.

A day earlier Iran’s Minister of Industry, Mine, and Trade Mohammad Reza Nematzadeh announced that Peugeot will be obliged to make up for the losses Iran suffered due to the company’s violation of its previous commitments.

Peugeot, an arch-partner of the Iranian auto industry, suspended sales in Iran in 2012 due to international sanctions.

Nematzadeh underlined that Iran’s losses due to the suspension of the previous contract will be compensated for in the new deal with the French company, however he refused the unveil further information, saying the details of the contract are confidential.

The French carmaker earlier announced that it had finalized a binding contract with Iran’s leading automobile manufacturer Iran Khodro over the production of cars in the country.

The contract whose value stands at €400 million envisages the investment by Peugeot in modernizing platforms, particularly in the main Iran Khodro site near Tehran. The investment will also allow for the export of vehicles to the region.

PSA will begin by producing 200,000 cars a year in a 50:50 joint venture, producing the Peugeot 208, 2008, and 301 models. Vehicle production will start in the second half of 2017.

By Trend News Agency