Peugeot vows discounts, waivers to Iran
Iran Khodro – the leading Iranian automaker – said on Sunday that it has been offered a lucrative package of incentives by the French auto giant Peugeot as compensation for its abrupt departure from Iran in 2012.
Hashem Yekkeh Zare, the head of Iran Khodro, has been quoted by the media as saying that Peugeot has agreed to provide the company with €427 million in debt waivers, bonuses and discounts.
"To compensate for suddenly leaving Iran under sanctions", Yekkeh Zare said, Peugeot has agreed to waive €80 million of outstanding debts and provide free car parts worth €25 million, and a free production line for the Peugeot 207 model worth €11 million.
Peugeot will also offer €311.6 million in discounts, he said, including €140 million in royalty fees for cars made under Peugeot's name.
Instead of €100, "Peugeot will receive €30 in royalty for two million cars," AFP has quoted Yekkeh Zare as saying.
Iran Khodro signed a deal with Peugeot during the last month visit to Paris by Iran’s President Hassan Rouhani.
Based on the deal, the two sides will form a joint venture that is expected to invest up to €400 million for the annual production of 200,000 cars in Iran over five years.
Peugeot pulled out of Iran in 2012 after the country came under what has been repeatedly been described as the worst regime of sanctions in mankind’s history. The company’s departure, however, later dealt a major blow to the company because Iran was its second-largest market, after France, AFP added.
Iran saw a landmark nuclear deal with the P5+1 group of countries – the five permanent members of the Security Council plus Germany – implemented in mid-July.
The deal accordingly led to the removal of a series of economic sanctions against Iran, particularly those that targeted foreign investments in the country’s auto industry.
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