What is up with the Franco-Iranian Joint Company?

Khodrocar – rough days of automobile industry started in the middle of this summer and is getting worse as the sanctions are affecting the industry more and more.

Foreign partners of automobile industry, especially the disloyal French car makers, leaving Iran market was not unexpected. It was expected that the industry of industry, mine and trade have had thought of some solution for this repeated situation but it they have not.

Renault as did back in the sanction periods of 2012, just stepped aside and halted and if it is going to stay for the proper time to kick back into the market, giving no clear answers to Iranian carmakers so that they could program their fate. Although Renault does not show much symptoms of loyalty to Iran car market as its low production figures reveals the true face of the story.

Renault Pars was established as the joint company between Renault and IDRO as the shareholder of IKCO and SAIPA, responsible for all Renault’s production activities, transition of technologies, supplying parts and so on. But what exactly is Renault Pars doing these days?

The management of Renault Pars is up to French CEOs or those hired by Renault of France though we cannot expect them to take the Iranian side in the middle of this chaos. Renault pars is going on while keeping a very low profile with more power imposed from the French side than the Iranian. Apparently the 49/51 ownership was just a show of as the key decisions are taken far from overseas. So low that its being does not affect Iran automobile industry at all.

We must now wait and see how the ministry of industry, mine and trade and especially IDRO are going to drag their rights out of the contract with Renault. Rights of ownership, decision makings, monetary demands and management.

Khodrocar Journalist: Reza Hosseini

Khodrocar Translator: Mostafa Anisi