French carmaker Renault inaugurated its new Tehran headquarters on Saturday, part of its attempt to establish itself as a major player in Iran's fast-growing automobile market.
On show was the Logan, a budget compact family saloon the company is set to produce in Iran as part of a joint venture between Renault Pars, the car maker's Iranian concern, and the Automotive Industry Development Company, a grouping of Iran's two main carm akers Saipa and Iran Khodro.
According to IRNA, an initial agreement was signed in March, with 51 percent of the operation held by Renault. The project involves the production of the Logan, to be branded in Iran as the L-90.
Annual production, to start in 2006, is expected to begin at 300,000 units but could eventually rise to 500,000, said Renault group chairman and Ceo Louis Schweitzer.
Renault officials have put the initial investment by the company at some 300 million euros, but said that amount could more than double over the next few years.
It is the largest direct and long-term investment in Iran by a French company since 1979. (menareport.com)
© 2004 Mena Report (www.menareport.com)
