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IRAN: Iran suspends Renault Logan project in exports dispute

20 April 2006| Source: just-auto.com editorial team

It is being reported that Iran has suspended a project that allows Renault

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 to produce its Logan car in the Islamic republic.

Citing a government official as source, Reuters reported that the move is part of a dispute between the company and Renault over exports.

"Iran's industry and mines minister has ordered the suspension

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 of L90 project until Renault company considers this ministry's views regarding the project," said Mohammad Karimi, spokesman of the ministry, according to Reuters.

Iran's state television quoted Karimi as saying that the ministry was demanding that the French side give part of its export market to the Iranian side.

Renault has said it had set up Renault Pars, a joint venture with an Iranian partner, to produce the L90 (Logan) from 2006 in Iran.

The project has come under criticsm from some conservative politicians in Iran who oppose commercial arrangements with Western companies.

Renault hopes that Iran's one million unit annual vehicle market will hold good demand potential for the low-priced Logan, especially as the ubiquitous Paykans (Hillman Hunters) age and are replaced.

 

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