PSA group, SAIPA have signed a joint-venture agreement to produce and sell Citroen vehicles in Iran.

The 50/50 joint-venture lays the foundations for a strategic partnership between the two companies.

Manufacturing will take place at the Kashan plant in Iran, which will be 50 percent owned by PSA Group.

The joint-venture will invest more than 300 million euros in manufacturing and R&D capacity over the next five years.

The agreement will be backed up by technology transfers and a significant level of local content.

Citroen models will be sold throughout the country via a network dedicated exclusively to the brand. No less than 150 Citroen outlets will open in the next 5 years.

(Source: Reuters)