Iran’s biggest car maker, Iran Khodro (IKCO) has said that it plans to reduce dependence on French manufacturers.
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“We are moving toward maximising the share of domestic producers and minimising strategic dependence on Peugeot,” Manouchehr Manteghi, chairman of Iran Khodro Company (IKCO), told reporters.
A number of different Peugeot models accounted for about 64% of the 542,000 passengers cars and pickups produced by IKCO in 2007.
IKCO and the country’s second-largest car manufacturer Saipa also produce the Renault Logan in a joint venture.
The IKCO chairman said the company is turning to East Asian firms and negotiating with a few Japanese companies to set up joint ventures.
Analysts say that the technology ties with Western firms sometimes create local political troubles for Iranian car companies and that France’s government has recently adopted a tougher line in its relations with Tehran. More recently, Iranian automotive firms have also been increasing ties with Chinese firms and Malaysia’s Proton.
