PSA Peugeot Citroën and Iran Khodro have signed an agreement to produce vehicles in Iran. This 50/50 joint venture lays the foundations for a strategic partnership between the two companies.
Up to €400m will be invested over the next five years in manufacturing and R&D capacity and this will contribute to facilitating the development of a competitive manufacturing base for producing, launching and marketing the Peugeot 208, 2008 and 301 models, fitted with latest-generation engines.
The agreement provides for: the restoration of contractual relations concerning the manufacture of Peugeot-branded vehicles currently produced in Iran; the creation of a joint venture on an industrial site in Tehran to produce new latest-generation Peugeot vehicles on a platform that will also be used by Iran Khodro to develop its own vehicles; and the capacity to export JV (joint venture) products across the region.
The agreement, which will be backed up by technology transfers and significant levels of local content, will come into effect once it is implemented, around mid-2016. The first vehicles will roll off the production line at the Tehran plant in the second half of 2017.
February 3, 2016
