The Forum for Partners in Iran's Marketplace

March 2005 / No. 34

Auto Industry


Agreed to Manufacture FIAT Cars in Iran

Fiat Auto S.P.A. and PIDF (Pars Industrial Development Foundation) Co. announced today a cooperation agreement to manufacture and distribute Fiat brand’s cars in Iran.

Herbert Demel, President and CEO of Fiat Auto S.P.A., and Manouchehr Gharavi, Chairman of PIDF Co., have signed a contract which calls for the production of the hatchback Fiat Polio, the sedan Siena, the station-wagon Polio Weekend Adventure, the Estrada pick-up, and a MPV version. The contract also encompasses the manufacture of bi-fuel vehicles, including Fiat Multipla and Doblo, powered by CNG (compressed natural gas) engines at PIDF’s industrial facility in Iran.

Production and distribution are expected to commence in the second half of 2005. Annual output  is expected to reach more than 100,000 units in phase one, and to exceed 250,000 units when full capacity is reached, overall industrial investment made by PIDF will total approximately Euro 200 million.

“This initiative is important because it forms part of our strategy for strengthening Fiat Auto’s presence in markets with a high growth potential in the automobile sector,” Herbert Demel said at the agreement signing ceremony in Tehran.” We want to bank upon and further exploit the prestige of our “world car“ project , which has won many awards in several countries and is praised by customers in more than 40 markets where the “Polio Family“ is already present. World - renowned Giorgetto Giugiaro, who has been named as “designer of the century“ by an international jury, has greatly contributed to the success of our product thanks to its Italian styling. The agreement also encompasses the production of bi-fuel vehicles powered by CNG engines, a field in which Fiat has been in the forefront technology and wisely plays a major role internationally. Moreover, we are happy to team up with PIDF and Mr. Gharavi’s organization that is making all efforts for the success of our new venture due to their recognized and long standing experience in the automotive sector. Scope of our agreement is to develop our business ties furthermore for a strong stay in the whole region as well as Iran.
" We intend to transfer our technology & know-how to Iran for Localizing parts & components. In another initiative we’ll link PIDF supplying chain to that of world material flow," Demel said.
According to Manouchehr Gharavi: “Thanks to our cooperation agreement, Fiat is back to our country after fifty years. We are delighted to be adding the Fiat automobiles to our factory and introducing its successful models to the Iranian market. Fiat is one of the most prestigious names in the automotive industry. It has consistently developed cars that have been affordable, practical and have greatly contributed to the motorization of entire countries. Fiat is a world leader in the area of bi-fuel vehicles and its technology in CNG engines, which have great potential especially in the Iranian market, is second to none. Our plans call for establishing an important and consistent market share in Iran. Furthermore, our new venture is destined to play an important role in the expansion of Iran’s automotive suppliers’ industry, further enhancing its expertise as it is going to join Fiat Auto’s worldwide suppliers' network. Moreover we’re sure our sincere cooperation will result in developing a bigger market share for our products in Iran as well as the whole region.”

 Turin and Tehran,
January 26.Jan. 2005

Fiat Auto: One of the pioneer companies in the automobile industry, Fiat has produced more than
85 million passenger cars and light commercial vehicles, including no less than 400 models, since 1899, when the company was founded in Turin, Italy. Some of them have represented milestones in the automotive industry. Fiat Auto operates world-wide with the following brands: Fiat, celebrated for value, economy, and innovation and whose mass produced cars are distributed over almost the entire price class spectrum; Lancia (acquired in 1969) means prestige cars are noted for their elegant styling, and comfort; Alfa Romeo (acquired in 1986) is famous as a maker of sport and luxury vehicles of style and distinction.

PIDF (Pars Industrial Development Foundation) Co.: In early 2003 almost a hundred of Iranian top managers in industry directed and joined by Mr. Gharavi & under his unique leadership established PIDF
(Pars Industrial Development Foundation), a holding company majorly consisting of ex-top managers of auto industry.
It must be pointed out that their efficient teamwork & strategy led IRAN KHODRO to No. 1 Company in Iran as well as No.1 car manufacturer in the whole region.

Scheduling to produce one million cars annually while succeeding to raise its rank amongst the top 20 biggest car manufacturers in the whole world. It must be added that “ SAMAND “ Iran's first national car was the outcome of the same teamwork evidencing their absolute unity. Consequently auto industry in Iran   boosted by an average growth rate of 27.5% which was the result of implementation of Mr. Gharavi’s strategy aiming at production of different classes of passenger cars, light and heavy vehicles in Iran.

PIDF major subsidiary companies which have emerged up to now may be enlisted as below:

1- “BONRO” in “Auto Manufacturing”

2- “PARSINCO” in “Special Projects and Construction”

3- “SIFCO” in “Supplying Parts and Components”

4- “LEASING” in “Leasing”

5- “PIPCO” in “Security System, Logistic & Services”

6- “ATS” In “Information Technology”


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  March  2005 / No. 34