PSA Group and SAIPA finalize their agreement joint-venture for Citroën in Iran
PSA Group and SAIPA, Citroën's historic partner in Iran since 1966, have signed today a joint-venture agreement to produce and sell Citroën vehicles in Iran.
This 50/50 joint-venture lays the foundations for a strategic partnership between the two companies. It will cover the entire value chain, from the design stage right through to vehicle marketing, including purchasing. Manufacturing will take place at the Kashan plant in Iran, which will be 50% owned by PSA Group. This industrial site is the most modern of Iran with a flexible industrial process at the highest level of environmental standards (water-soluble paints for example).
The joint-venture will invest more than €300 million in manufacturing and R&D capacity over the next five years. The agreement will be backed up by technology transfers and a significant level of local content.
Consistent with the core model strategy deployed in the Push to Pass plan, the production in Kashan of three vehicles adapted to the heart of Iranian market will start in 2018. From early 2017, imported vehicles will be staging Citroën’s comeback in the country.
Citroën models will be sold throughout the country via a network dedicated exclusively to the brand. No less than 150 Citroën outlets will open in the next 5 years.
Commenting on the new agreement, Carlos Tavares, Chairman of the PSA Group Managing Board, said: "With more than 50 years of presence in Iran, PSA Group through this new strategic partnership is clearly committed to the deployment of a rich product plan that meets the expectations of Iranian clients."