Few good news stories seem to originate in Iran, but Renault wouldn’t agree.
The French automaker has inked a deal with the government of Iran to massively boost vehicle production in the middle eastern country.
The joint venture announced today between Groupe Renault and the Industrial Development and Renovation Organization of Iran (IDRO) seeks to increase investment and vehicle output. Renault will be the majority shareholder in the project, which suits world-straddling CEO Carlos Ghosn just fine.
“The Iranian government wants to attract foreign investment in the Iranian car industry to bring competitive new products benefiting Iranian customers with respect to standard, quality and safety,” said his Excellency Mohammad Reza Nematzadeh, Minister of Industry, Mine and Trade of the Islamic Republic of Iran, in a statement.
Renault was seen as an “ideal partner” due to its 12-year presence in the country. Sales of all Groupe Renault vehicles in Iran rose 56.1 percent last year compared to 2014, the automaker claims. Last year’s sales totaled 51,500 vehicles, or just under 5 percent of market share.
The deal involves a joint engineering and purchasing center to benefit local suppliers, as well as a new production facility for Renault vehicles. The automaker expects an initial production capacity of 150,000 Symbol and Duster models per year.
With Tehran’s help secured, Renault can now realize its goal of building a complete distribution and dealer network in the country.
“With a 2 million vehicle market projected by 2020, Iran’s automobile market has undeniable potential,” Ghosn said in a statement.
Oddly, the deal comes one day after another French automaker, PSA Peugeot Citroen, publicly announced plans to reclaim the top sales spot in Iran. PSA suspended sales in 2012 after Iran’s nuclear program sparked an international boycott.
[Image: Renault]
I hope that Duster in the picture isn’t on Autonomous Mode.
It’s missing the pavement by a good 20 feet!
There is a lot of business to be done in the mid east, if only…
The Duster is so fast that it can actually make the rocks directly underneath it blurry!
I’ve driven a Duster. it is *anything* but fast.
I think someone at Renault should ditch Photoshop and use Bleex instead.
I call shenanigans on that photo as well because Iran doesn’t have any natural rocks, only busted-up urban concrete provided for youthful self-expression.
They had concrete before that one dude had all those problems in 1979.
(Very interesting to read about how that went down, and/or documentary.)
This is the same Renault-Nissan that is making headlines for threatening to leave the UK over Brexit. How big is the UK market v. the Iranian one? How are Iran’s trade relations with potential suppliers? When Carlos threatens to kill UK manufacturing investments unless the British taxpayers pay tariffs to be imposed by EU bureaucrats fearing for their own power, UK leadership should tell him to get bent.
Is Renault going to start building used Corollas? I thought that was all anyone in that country was buying.
Anyway, someone just remind me that it’s not the country of manufacture that determines quality. French engineering, Iranian production – it’s gold, Jerry, gold!
Used Corollas are the official car of Afghanistan, not Iran.
Iran traditionally has a huge car market. American cars were very popular there until 1979. Gas was cheap, and working AC was a big selling feature.
The French took over that market, selling the same softly-sprung dead-reliable cars that were a staple of African roads.
Blah blah blah isis, blah, blah, terrorist, blah blah, make
America great again… Good for Renault and Iran. People forget that majority are good honest hard working people in that country and that they need opportunities too.
As opposed to the UK, where they dared thwart the authority of Brussels bureaucrats, prompting Nissan(also part of Renault) to threaten to halt investment. Does Iran have better relations with supplier nations than the UK does? Who has the bigger domestic market?
The things that go through this little boy’s head. A lot to unpack here.
You’re an ant trying to understand why an elephant stepped on you.
But not a Trumpette trying to figure out why his butt hurts so much.
Say I can think of another Iranian fella called his excellency Mohammad Reza…
The Rootes Group did well in Iran with a PSA heart transplant.
Rootes started exporting CKD kits to Iran in 1966 and were owned by Chrysler until 78.
PSA continued to provide support after the Iranian revolution, including switching to Peugeot engines.
Renault Khomeini has a nice ring to it.