Xantia
from Iran |
 |
| Citroen has
agreed that Saipa would serve as a center for exporting Xantia to the Middle East, Central
Asia, Russia and Ukraine |
On February 18, 2000, a 150-million-euro contract was signed
between Saipa Co. of Iran and Frances Citroen in Paris for joint production of
automobiles. Here is an account on the contractual agreements by both sides and the impact
of the contract on Irans auto industry:
Based on the Saipa-Citroen
contract, the French company would buy 13,500 automobiles from Saipa in a period of one
year. The value of automobiles is estimated at 150 million euros. Another undertaking by
Citroen is that the French partner would provide Saipa with the tools and models as well
as decorative equipment for automobiles. And Saipa would become a major center for
exporting Citroen vehicles to newly independent countries as well as the Persian Gulf
littoral states. It can also export its products to Turkey, Russia, Ukraine and other
countries.
Through signing the said contract Saipa has succeeded to receive French know-how in auto
manufacturing without the transfer of any forex, and would act as a center for the export
of Xantia cars.
Cooperation
between the two sides was discussed for the first time in 1994, but since Saipa today has
new technical facilities and human-force capabilities, the terms of the recently-signed
contract are now most suitable for Iran, comparing to what was considered back in 1994.
In order to have an auto industry independent from forex and to show Iranian capabilities
in auto manufacturing to the French companies, Saipas officials have held lengthy
meetings with Citroen in the past year. The Citroen officials visited Saipa and became
familiar with Iranian competence in building auto parts which are exportable to countries
including France. In the contract signed between Saipa and Citroen for production of
Xantia, the French side agreed to receive Siapas automobiles instead of receiving
forex from Iran. In other words, the total purchase from the French company is equal to
the amount Citroen would buy from Saipa.
Based on the contract, Saipa is to export molds and fixers necessary for production of
automobiles to France and this has been approved by the French specialists with respect to
the high quality of Iranian products.
Moreover, Citroen has agreed that Saipa would serve as a center for exporting Xantia cars
to the Middle East and Central Asian regions as well as Russia and Ukraine. Another part
of Saipas products would be exported to Citroens international network through
which they would find their way to other countries with Saipas mark on them.
Saipa-Citroen contract is valid for a period of five yeas, after which production of new
models would be dependent on the French sides approval. Since the beginning of
production of Xantia in Iran, 40% of its parts would be made domestically.
At least 6,000 Xantia cars would be manufactured in Iran while 4,500 of this figure would
be exported. In 2001, some 9,500 out of total 12,000 cars to be made in Iran, would be
sent abroad for sale. The following years would witness a growth in the production and
export of Xantia by Iran.
These types of contracts can serve as a prelude for a new movement in Iranian auto
industry directed at the self-sufficiency of this industry from the forex revenues of the
country and at demonstrating Iranian technical capabilities to the world. Production of
Xantia, a very successful product in France, would make a real change in Saipa, which has
moved into manufacturing medium size cars from previous small size ones. With launching
Xantias production line, the manufacturing of Renault and Pride cars would not be
stopped in Saipa. |