Renault Seeks Partnership in Iran

Renault SA is in discussions to either buy a minority stake in Iranian vehicle assembler Pars Khodro or acquire one or more of factories from Saipa Group, the company's parent, The Wall Street Journal reports.

Naser Aghamohammandi, who heads Pars Khodro, disclosed the negotiations during an EU-Iranian trade conference in Vienna. The conference was organized after Iran and western negotiators signed a deal on July 11 to lift trade sanctions in exchange for controls on Iran's ability to develop nuclear weapons.

Renault and Pars Khodro sharply reduced their assembly of Renault cars from kits during the economic blockade against Iran. The Journal says the sanctions shrank overall domestic production in the country to 744,000 units in 2013 from 1.6 million in 2011.

Renault rival PSA Peugeot Citroen said last week it is discussing plans with local partner Iran Khodro to relaunch Peugeot production in the country.