Peugeot bounces back to Iran after sanctions lifted
Peugeot has signed a deal to begin producing vehicles again in Iran in late 2017. The agreement makes the French company one of the first automakers to take advantage of recently lifted sanctions against the country, according to Bloomberg.
As part of the new agreement, Peugeot will invest $439 million in automaker Iran Khodro over five years to upgrade a factory near Tehran. By late next year, the plant will be able to build 100,000 examples of the Peugeot 208, 301, and 2008 annually. The site's capacity will eventually double, Bloomberg reports.
Iran Khodro and Peugeot had a partnership going back to 1962, and before sanctions were lifted were 51-49 percent partners in their joint venture. Now, the partnership will be restarted on a 50-50 footing.