Iran’s Minister of Industry, Mine and Trade, Mohammad Reza Nematzadeh, has said that Italy’s Fiat is in talks with Iran Khodro to produce commercial vehicles, buses and gas-fueled engines in Iran.
Around 370 Italian traders, including representatives of steel group Danieli, energy company Enel, agricultural machinery maker CNH Industrial, Telecom Italia and several banks, recently visited Iran to discuss business opportunities.
PressTV reports that Fiat, which controls America’s Chrysler, halted sales to Iran in 2012 following similar moves by other carmakers under US pressure to cut ties with Tehran.
The automotive industry is Iran’s second largest source of foreign currency and foreign technology after oil.
The announcement came as Iran Khodro said his company and France’s PSA Peugeot Citroen had agreed on a 50-50 venture worth 500 million euros for production of cars in Iran.