Iran’s major car manufacturer Iran Khodro and French car manufacturer Peugeot-Citroen (PSA) agreed to launch a joint company in Tehran for car production, Xinhua News reports, citing Tasnim news agency.
The 50-50 joint venture, if finalized, would be worth 400 million euros, the report said.
The company to be established will manufacture the Peugeot 208, the 2008 Sport Utility Vehicle, as well as the 301 compact.
Thirty percent of the cars which are to be jointly produced, will be exported to the Middle East and other countries, Iran Khodro’s Chief Executive Officer, Hashem Yeke Zareh, was quoted as saying.
Owing to the U.S.-led sanctions against Iran regarding the latter’s disputed nuclear issue, PSA had left Iran in 2012.