The French car maker “PSA Peugeot Citroën” said on Thursday that it had signed a binding contract with Iran’s leading vehicle manufacturer “Iran Khodro” to produce a range of cars in the country.

Carlos Tavares, chief executive of PSA, said at a press conference in Paris that the value of the deal stands at €400 million.

Tavares added that the deal “turns the page on the period of international sanctions” and allows the group and Iran Khodro to start a “new chapter in their 30-year relationship”, the Financial Times reported.

This came as Iran’s President Hassan Rouhani arrived in Paris on the second leg of his European tour that has already taken him to Italy.

Tavares further emphasized that PSA will invest in modernizing platforms, particularly in the main Iran Khodro site near Tehran. The investment will also allow for the export of vehicles to the region, FT further quoted the official as saying.

PSA will begin by producing 200,000 cars a year in a 50:50 joint venture, producing the Peugeot 208, 2008, and 301 models. Vehicle production will start in the second half of 2017, the report added.

Iran was Peugeot’s second largest market before the French automaker left the country in breach of contract, idling a massive assembly line which manufactured vehicles from kits of parts.

Read More from Source

Read “IKCO and France” Official Press Release

About “Iran Khodro”

Trading name	PSA Peugeot Citroën
Type	Société Anonyme
Traded as	Euronext: UG OTC Pink: PUGOY
Industry	Automotive
Founded	Paris, France (1976)
Headquarters	Paris, France
Area served	Worldwide except United States, and Canada
Key people	Carlos Tavares (CEO and Chairman of the management board) Thierry Peugeot (Chairman of the supervisory board)
Products	Automobiles (73.8%) Automotive parts (21%) Financing (2.8%) Logistics (2.2%) Motorcycles (0.2%)[1]
Production output	2.97 million units (2012)[2]
Revenue	€54.359 billion (2014)
Operating income	€4.698 billion (2012)
Net income	€435 million (2014)
Total assets	€68.49 billion (end 2010)[3]
Total equity	€10.557 billion (2012)
Owner	Peugeot family (14%)
Number of employees	117,541 Automobile division (end 2012) 202,108 Company total (end 2012)
Subsidiaries	List[show] Transportation Citroën Peugeot Peugeot Motocycles PSA Peugeot Citroën China Dongfeng Peugeot-Citroën Automobile Changan PSA Automobile Toyota Peugeot Citroën Automobile Czech Automotive parts Faurecia (majority stake) GEFCO (75% sold to RZD Russian Railways, September 2012)[4] Financing Banque PSA Finance Other Process Conception Ingénierie BMW Peugeot Citroën Electrification Peugeot Citroën Moteurs International: Peugeot Citroën Mitsubishi Automotiv Rus (70%) PSA Peugeot Citroën do Brasil PSA Peugeot Mexico PSA Peugeot Citroën of Iran(currently on Halt)
Website	www.psa-peugeot-citroen.com