PSA Peugeot Citroën and Iran Khodro in joint venture

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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

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John joined UKi Media & Events in 2012 and has worked across a range of B2B titles within the company's automotive, marine and entertainment divisions. Currently editor of Automotive Testing Technology International, Crash Test Technology International and Electric & Hybrid Marine Technology International, John co-ordinates the day-the-day operations of each magazine, from commissioning and writing to editing and signing-off, as well managing web content. Aside from the magazines, John also serves as co-chairman of the annual Electric & Hybrid Marine Awards and can be found sniffing out stories throughout the halls of several of UKI's industry-leading expo events.

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