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Iran calls the shots as foreign carmakers make re-entry

New JV deals require 40% of production done in Iran, rising to 85% after five years

Published Sun, Nov 30, 2014 · 09:50 PM
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Teheran

FOREIGN carmakers seeking a return to the potentially huge Iranian market with the lifting of international sanctions will find the business environment has changed: former joint venture partners now want to play the game by their own rules.

Iran's car industry has been a major casualty of penalties imposed over the Islamic republic's nuclear programme, with production plummeting and workers laid off because of the ensuing economic slowdown.

France's PSA Peugeot-Citroen and South Korea's Hyundai left the country altogether, while Renault continues to import parts and assemble cars in Teheran but at a fraction of former output.

Total car productio…

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