-Tehran said that a contract with French car giant Renault to make a new budget car aimed at the domestic market may go ahead after all, the official news agency IRNA reported.
LONDON, April 20 (IranMania) - Tehran said that a contract with French car giant Renault to make a new budget car aimed at the domestic market may go ahead after all, the official news agency IRNA reported.
"There are signs indicating that Renault will accept Iran's conditions. If so, the deal will be on," industry ministry spokesman Mohammad Karimi was quoted as saying.
The report came the day after the ministry said it had suspended the contract due to an apparent export dispute.
The student news agency ISNA quoted an unnamed Renault executive in Iran as saying the French manufacturer was "in the process of discussing the L-90's export conditions."
Renault struck a deal with Tehran in 2004 to produce the Logan, a budget compact family saloon, as part of a joint venture between Renault Pars, the car giant's Iranian concern, and the Automotive Industry Development Co, grouping Iran's two main state-controlled carmakers, Saipa and Iran Khodro.
An initial agreement was signed in March 2004, with 51% of the operation held by Renault, to produce the Logan in Iran, where it would be branded the L-90.
But Iran now appears to be demanding that it be able to export a portion of the production to the French automobile manufacturer's traditional markets.
The 300-million-euro (369-million-dollar) deal, was the largest direct and long-term investment in Iran by a French company since the 1979 Islamic revolution.
Source : IranMania.com