Iran Khodro, Peugeot to form a joint export firm

Source : IranMania.com

Iran Khodro Company (IKCO) and Peugeot have decided to exploit every possible opportunity in global auto market by establishing a joint export firm for Peugeot models manufactured in Iran, the Persian service of ISNA reported.

LONDON, March 14 (IranMania) - Iran Khodro Company (IKCO) and Peugeot have decided to exploit every possible opportunity in global auto market by establishing a joint export firm for Peugeot models manufactured in Iran, the Persian service of ISNA reported.

Given that the country is gradually turning into a regional headquarter for Peugeot and Renault production, ?it is imperative to capitalize on relative advantage of this cooperation to increase competitive potentials of this venture,? IKCO?s deputy in Export and International Affairs Alireza Mirzaii stated.

?By relative advantage, we mean receiving low interest financing from domestic sources such as Export Development Bank of Iran (EDBI) and low delivery cost to the neighboring countries,? he said, elaborating that the company has managed to sell 500 automobiles in Russia within two months, whereas, the Peugeot?s sales stood at only 2,000 of 206 model in 2005. Lower overheads and running more cost efficient sales operation are among the factors having impact on retail price of a product, Mirzaii added.

IKCO has so far established five factories in Syria, Senegal, Venezuela, Belarus and China for production of Samand and Pars and Peugeot 206 models.