January 8, The Iran Project � Iran said on Sunday that Germany�s auto giant Volkswagen will cooperate with an Iranian company to produce passenger cars.

Following Iran�s cooperation with the world car manufacturers in post-sanction era, Iranian automotive�company,�Mammut�Group announced that it has negotiated with Germany�s Volkswagen for the production of passenger cars.

Speaking to a reporter on Sunday, Mehrzad Fordous, Managing Director of the Iranian automotive�company,�Mammut�Group said we are looking to produce passenger cars and planning to use domestic manufacturers as well as foreign ones.

Referring to the price level of the cars produced with the collaboration of foreign automakers, Fordous stressed that we are going to produce popular cars at affordable prices.

Volkswagen�s last venture in Iran involved its production of the Gol compact with Iran�s Kerman Khodro before withdrawing under US pressures.

Other German automakers including Mercedes have already started talks to form partnerships with Iran Khodro � the leading Iranian car giant.

Leading car makers are seeing a pent-up demand for cars in Iran, a country of more than 80 million people, which is emerging from years of sanctions after a deal between Iran and the P5+1 � the five permanent members of the UN Security Council plus Germany � over the Iranian nuclear energy program came into effect.