A representative of the Iranian government has reported that Fiat Chrysler Automobiles' (FCA) Italian arm has held talks with an automaker in the country, reports Trend News Agency citing IRNA news agency. Iran's industry, mining, and trade minister Mohammad Reza Nematzadeh said on the sidelines of an Iran-Italy trade forum that took place in Tehran (Iran) yesterday (29 November) that Fiat has suggested that it is ready to co-operate with Iran, and that the government would welcome this. He added that Iran is ready to co-operate with Fiat on producing sedans and commercial vehicles, as well as compressed natural gas (CNG) engines. Italian deputy minister for economic development Carlo Calenda, who headed the Italian trade delegation, added that Italy wants to help Iran become the eighth largest vehicle manufacturer in the world by 2018.
Significance: Fiat in its previous guise under the Fiat Group signed an agreement with Pars Industries Development Fund (PIDF) in 2008 to build a new factory to build the automakers Siena model. However, its Iranian plans were interrupted by Fiat joining up with Chrysler which meant that it had to step back from the country. However, an agreement on Iran reducing its nuclear activities has led to the relaxation of economic sanctions soften, and many automakers are now looking to tap into the opportunities that this market holds. IHS Automotive currently forecasts that as well as Fiat's Siena production resuming, production of its related Strada pick-up will also take place. Other LCV models are also set to join them including the Fiorino, Doblo and Ducato. However, assembly is expected to begin in 2016, we see production levels peaking at less than 9,500 units by 2018.
