Automakers of Iran and France agreed to establish a joint venture

Almaty. March 11. Silkroadnews - Major automakers of Iran and France - Iran Khodro and PSA Peugeot-Citroen, agreed to establish a joint venture on the territory of the Islamic Republic, transmits the Iranian News Agency (IrTAG) on Wednesday.
"Peugeot together with Iran Khodro will build the plant, which will be 50% owned by Peugeot, and 50% by Iran Khodro", - said the president of the Iranian automaker Hashem Yekezare.
He noted that about a third of all products produced by the company will be exported.
However, H.Yekezare pointed the concern of Iranian consumers on the quality and safety of cars assembled in Iran by Chinese automakers. According to him, the top management of Iran Khodro has taken steps aimed at gradual displacement from the domestic market the Chinese companies that are engaged in the assembly of "substandard and unsafe vehicles".
According to local analysts, automakers from China to date have managed to win a significant share of Iran car market. This happened when large European companies decided to shut down their operations in the country following the tightening of sanctions against Tehran in 2011.
Meanwhile, the head of the Iranian automaker announced the start of negotiations on the resumption of cooperation with the Japanese company Suzuki, as well as a number of other companies in the EU.