Why FCA Didn’t Come To Iran?

Khodrocar – in the march of 2016 while different economic groups from Europe were traveling to Iran for business. Italians came too. At that time, it was announced that Italian automakers are going to produce cars alongside Iranian companies. This news approved by the Mohamad Reza Nemat Zadeh, Minister of Industry, mine and trade at the time and the chairman of the Italian business group.

After two weeks, Yeke Zare said that the FCA is going to be the fourth partner of IKCO. After that, FCA was forgotten till the February of 2017 when CEO of IKCO said they continue the negotiation with the American – Italian company and FCA became bold again after one year.

Now, about one year has been passed and the results of the negotiations are not clear yet. But why? The first reason is trump’s new policy. During the first talks in 2015, trump wasn’t the president of the USA but FCA wait till the election of US president in order to observe the new president's sight about JCPOA.

Parts of the FCA Shares’ belongs to an American company and they have to wait for the decisions of the US government. Trump has an aggressive policy toward Iran, but he didn’t become clear about the future of JCPOA.

Another reason is the internal changes of FCA. Chinese company Great Wall and Korean company Hyundai are interested to buy parts of the FCA shares’. The details of this news haven’t published yet, but FCA is okay to sell some parts of its shares’. As they think to change the share holders’, they won’t add another partner.

FCA is among the top 10 automakers in the world. They have good experience in producing cheap cars and it is an important option for Iran’s market. So, presence of FCA in Iran is beneficial for both sides.

Khodrocar Translator: Amin Zamani