- Iran Khodro Industrial Group News Website

February 2016
Iran Khodro Group Magazine
English
Russian
‫العربیة‬
116
www.ikcopress.com
Ikco in Post-JCPOA Largest
Industrial Event
T
C
EN
S CO NF
ER
e
sp
cia l R E P OR
No. 116
Ikco in Post-JCPOA
Largest
Industrial Event /4
E
N
The First Foreign JV in Iran
Between IKCO and Peugeot /11
IKCO, Daimler AG.,
Establish Joint Companies /13
Daimler to Produce Three
Engines in Iran /14
C
T ,L
O O PERAT
IO
EE
PR
Fiat as IKCO’s New Partner /7
W
PR O D U CT
IN
NE
Published by: IKCO International Relations Dept
Address: Iran Khodro Co, Gate 5, km 14 karadj Rd.,
Tehran, 13895-111, Iran
Manager Ali Mesrian
Editor-in-chief Hassan Bananej
Executive Supervisor Saeid Amirian
Editors, IKCO Vision English Farnaz Ghasemi
Editor, IKCO Vision Arabic Javad Abd Rouyani
Editor, IKCO Vision Russian Fuzie Ghanbari
Coordinator Massoumeh Jafari
Designer jafar zehni
Tel (+98 21) 48 22 84 86 - 48 22 84 86
Fax (+98 21) 48 22 84 99
E-mail ird@ikco.com
© 2011 IKCO Communication & Int’l Relations Dept.
All Rights Reserved.
Mass Production
of 1st Turbocharged
Engine /16
GLOB
AL
SA
LES
Export, the Main
Focus of IKCO /19
PR
O
DU
CT
1400 Turbo Engines to
Be Produce By Next Two
Month /20
Daily Production
Surpasses 2,000
Vehicles /21
E
XH
IBIT
IO N
IKCO to Produce
Cars in Oman /22
in
t h e p r ess
Iran has produced
the new turbo engine/24
Iran says Peugeot to pay $446
million
compensation for sanctions
move/24
Italy’s Fiat to Bring American
Car Technology to Iran: IKCO /25
Daimler Trucks to Return
to Iran With Production, Sales
Accords /25
special REPORT
Ikco in Post-JCPOA
Largest
Industrial Event
The main goal of this year’s
Iran Automotive Industry International Conference to be
attended by almost all top
managers from world’s larg-
4 ikco vision Feb 2016
est car manufacturers is to
create an appropriate ground
for enhancing international
cooperation and competitiveness.
The two-day event slated for
February 29 and March 1 is
the largest industrial gathering to be held after the Joint
Comprehensive Plan of Ac-
no longer under sanctions.
The West’s sanctions on Iran
are set to be lifted over the
next few days and this has
cherished the hope that the
upcoming conference in Teh-
Iran’s auto industry
has a special condition. Iran’s economy
owes a great deal
of its growth to the
industry. So the conference is of great
importance for the
country’s auto industry from several
aspects
tion (JCPOA) signed between
Iran and the P5+1 group of
countries over Tehran’s nuclear program in July 2015.
Today, Iran’s auto industry
has a special condition. Iran’s
economy owes a great deal
of its growth to the industry.
So the conference is of great
importance for the country’s
auto industry from several aspects. But what discriminates
this year’s conference from
the two previous ones is the
current international condition of Iran as the country is
ran could deeply change the
“Future of Iran’s Auto Industry” and the global markets.
Various Professional
Meetings
Outlining the programs of the
conference, the spokesperson
of Iran’s Car Manufacturing
Policy-making Council, Sasan
Ghorbani said, “In addition
to president and parliament
speaker, some other Iranian
officials including Industry
Minister as well as a number of professors, industrial
leaders and pioneers and top
managers from domestic and
international car manufacturing companies would deliver
speeches during the two-day
conference.”
He also noted that various
professional meetings would
also be held during the conference, adding:” Different
events would be organized
during the conference including the first professional exhibition on Iran’s auto industry
capabilities.”
First Largest
Post-JCPOA Gathering
The exhibition will be held
with a special focus on auto
industry. This time Iranian
companies would put on display their capabilities for international suppliers.
Most large companies from
different countries including
Germany, France, Italy, Japan, China and Sweden have
been invited to take part in the
conference.
Though there is no limitation
for the presence of American
companies, they have not yet
expressed their willingness to
attend the conference. So, it is
not clear if there would be any
car manufacturer from the US
at the conference or not.
Today, car sales rate has surpassed its production across
Feb 2016 ikco vision 5
special REPORT
the world and almost all car
companies are desperately
seeking to export their products to all parts of the globe.
So, given Iran’s new presence
in the global market and the
new rounds of cooperation
between Iran and international partners, the organizers of
the event are seeking to attach a great importance to the
economic and industrial role
of the country in the global
arena.
The conference is the first
and largest international
event to be held in Iran af-
6 ikco vision Feb 2016
ter lifting of sanctions. Almost all prominent industrial
companies which have been
barred from taking a role in
Iran’s auto industry under
sanctions may now express
their willingness to take part
in the event and even sign a
number of contracts with Iranian companies.
Since the signing of JCPOA,
147 trade delegations at
prime ministerial and deputy
prime ministerial have visited Iran to discuss different
topics including investments
in Iran’s industry.
In line with the 3rd International Conference on Iran Automotive Industry, Iran Auto
Industry Achievements Exhibition is set to be held from
February 28 to March 3 in
Tehran international exhibitions’ permanent fairground.
As the largest car manufacturer in the Middle East,
IKCO is playing a key role
in organizing the conference.
So, like previous years, the
company is committed to
shoulder its responsibility to
promote the industry in Iran
and the region.
PREES CONFERENCE
Fiat as IKCO’s New Partner
Presenting a speech during a
press conference in Tehran,
Hashem Yekehzare IKCO CEO
referred to his company’s talks
with the Italian carmaker, Fiat
Company, as its fourth partner.
“Fiat is a well-known international company, the growing
trend of which can guarantee its bright future,” declared
Yekehzare and added, “Signing agreement with the company was a right decision and
the company has expressed its
interest in expanding ties with
Iran Khodro.”
IKCO CEO also emphasized the
cooperation negotiations with
this company would soon start.
“The new joint venture cars to
enter Iran’s market will cost 60
to 70 million toumans (16000 to
20000 dollars),” he also mentioned.
It’s noteworthy; Fiat Company
is the world’s 6th largest car
making company, considering a
century of experience in manufacturing passenger cars, commercial vehicles and various
types of engines.
Fiat also runs plants in Brazil,
Argentina and Poland and has
gone through joint ventures with
France, Turkey, Egypt, South
Africa, India, Serbia, Pakistan
and China.
Peugeot Compensation
to IKCO
The French carmaker Peugeot is
set to pay Iran 427,600,000 euros in compensation as part of a
supportive-compensatory package.
Elaborating on the package details, IKCO CEO Hashem Yekehzare said, “€116m would be
paid for the damage inflicted on
the current and past projects and
€311,600m as part of discounts
Feb 2016 ikco vision 7
PREES CONFERENCE
and bonuses for future cooperation.”
“Peugeot has agreed to provide
us with €25m worth of free spare
parts for this year. We have already received parts of them.
Meanwhile, an equivalent of
€11m worth of production line
equipment for the Peugeot 207
model would be given to IKCO
by the French company. Iran has
also written off €11m of its debt
purchasing parts and components of motor power particularly gearbox from Peugeot, adding:” The company has pledged
to dispatch its engineers to
IKCO site for one year in return
for €4m to promote the quality
of the current products.”
On the other hand, IKCO engineers would be dispatched to
France in return for €1,600,000
to attend some training courses
to Peugeot. Of the entire damage claim, about €47m would
directly impact our current and
next years’ profit and loss statement,” he said.
Yekehzare went on saying that
Peugeot will also waive €69m in
royalty fees for vehicles made under Peugeot’s name before and after Iran sanctions as well as those
vehicles made under a new contract signed just recently between
the French company and IKCO.
He said the compensation also
includes a €20m discount on
in auto industry. Peugeot will
also spend €1m on improving
its vehicle systems in Iran.
According to Yekehzare, Iran
Khodro is set to receive €70
discount for using Peugeot platforms per each IKCO car. This
means IKCO would gain €140m
in return for producing 2 million
vehicles.
He emphasized that based on the
new contract; IKCO has to pay
only €10 in royalty fee for each
vehicle. Given to the high production record of IKCO in the
8 ikco vision Feb 2016
coming years, Peugeot’s shares
from this section would amount
to €145m which Iran Khodro is
not obliged to repay.
Localization Process
Iran Khodro CEO also stated
that direct investment, technology and know-how transfer and
export are among the main policies of the Iranian government
stipulated in the new contract.
Yekehzare also said under the
agreement, 40 percent of IKCO
vehicle production would be localized at the beginning of this
cooperation but the figure is set
to reach 70 percent in the fourth
year of their cooperation.
He stressed that the localization
process which is one of the main
goals of Iran’s Industry Ministry
would create a positive balance
providing IKCO with enough
resources to cut its dependence
on the government in terms of
foreign currency.
Export of Products
In response to a question on the
present vehicles of Peugeot,
Yekehzare said,” The new contract has nothing to do with the
current Peugeot vehicles. This
means that we would remain
in control of producing and exporting the vehicles which are
being made under the name of
Peugeot.”
“Under the new contract, the share
of Peugeot in IKCO portfolio
won’t be higher than 15 percent.
Meanwhile, 85 percent of the future products would be made under IKCO name or a joint-stock
company between IKCO and other well-known carmakers across
the globe,” he added.
Touching upon the justifiable
criticism of IKCO’s decision to
sign a new contract with Peugeot after leaving Iran due to the
Wests’ sanctions on the country,
IKCO’s CEO claimed, “After the
sanctions, Peugeot was not the
only company which left Iran. So
this should not affect our decision for restoring our cooperation
with Peugeot. Meanwhile, unlike
the past, we don’t need to view
Peugeot as our main trade partner
anymore.”
He emphasized that as a preemptive measure; IKCO has included
a special stipulation in the new
contract based on which Peugeot
is set to pay a heavy compensation should it leave Iran.
Export of 30 percent
of the cars
Citing export as one of the main
part of the contract, Yekehzare
declared, “IKCO is set to export 30 percent of its products
to a certain group of countries
including Commonwealth of
Independent States, Eastern Europe , Middle East, some Asian
countries and the whole Africa.”
He also noted that with producing 200,000 vehicles and export-
ing 60,000 ones, IKCO would
gain €480m in export which will
create €60m of positive balance
for the company.
“40 percent of our annual products are being made under IKCO
name. So their export would
certainly provide the national
economy with further profits,”
he stressed.
40 percent of IKCO
vehicle production
would be localized
at the beginning
of this cooperation
but the figure is set
to reach 70 percent
in the fourth year of
their cooperation
Joint Venture Company
He went on saying that the joint
venture company would be established with a €500m investment. Peugeot had pledged to
invest €250m in Iran, the profits
of which are set to go to two
sides equally.
The CEO stated that under the
agreement, spare part suppliers affiliated with IKCO and
Peugeot will cooperate in part
production and supply following the establishment of this JV
company.
“With transferring part production technology, all the part
makers that join the supply
chain of this JV will be able to
produce spare parts based on
their own knowledge. On the
other hand, Peugeot has pledged
to put these parts in large numbers in its international chain,”
he mentioned.
Yekehzare also noted that €54m
of the total €500m investment
in the joint venture company
would be invested in the part
making sector, adding the new
contract would provide Iranian
suppliers with opportunities to
work with their full capacities
and adopt an update technology.
First JV Product
Yekehzare also said the new
cars’ will enjoy five gasoline
and diesel engines adding, “In
addition to creating a ground for
technology transfer, the production of the engines is set to be
localized by 70 percent.”
The CEO of Iran Khodro said
the future products of the company would be among the modern European vehicles noting
that the first vehicle to be produced under the new contract is
Peugeot 2008 model which was
unveiled officially during an exhibition in Geneva and Peugeot
is expected to begin its mass
production soon.
“Iranian carmakers are sup-
Feb 2016 ikco vision 9
PREES CONFERENCE
posed to annually produce 3
million vehicles by 2025. Of the
mentioned number, 1,800,000
vehicles is set to be produced by
IKCO with 40 percent of them
under its name and the remaining 60 percent under a joint
brand with other global manufactures,” he said.
New Round of Cooperation
with Mercedes Benz
Yekehzare emphasized that Iran
Khodro Diesel and Mercedes
Benz are set to establish a joint
venture company with 51 percent
of its shares for the former and the
remaining 49 percent for the latter. Meanwhile, a joint center for
sale and after-sales service would
be established with 51 percent
of its shares for Benz and the re-
10 ikco vision Feb 2016
Under the agreement, spare part
suppliers affiliated
with IKCO and
Peugeot will cooperate in part production and supply
following the establishment of this JV
company
maining for Iran Khodro Diesel.
“Purchasing 30 percent of
IDEM shares by Mercedes Benz
is among other main parts of the
new contract between two sides.
Mercedes Benz will also buy
20 percent of Mehvar Khordo
shares after changes are made to
the company’s structure. Meanwhile, Govah Company will be
owned by the joint venture company for sales and after-sales
service,” he said.
The CEO announced that the
agreement between IKCO and
Benz over passenger car production would be finalized by the
next two weeks saying, “Since
more than half of the abovementioned sales and after-sales
service company belongs to
Mercedes Benz, the company is
supposed to make more investment and establish its own leasing centers in Iran within Germany’s law.”
INT,L COOPERATION
The First Foreign JV in Iran
Between IKCO and Peugeot
During Iranian President
Hassan Rouhani’s state visit
to Paris, PSA Peugeot Citroën and Iran Khodro signed
a joint venture agreement to
produce latest-generation vehicles in Iran.
The contract targets at creating an Iranian-French JV with
direct financial investment of
Peugeot in Iran, transferring
technology, producing upto-date Peugeot cars and using the capacity to export JV
products across the Middle
East and North Africa.
This joint venture lays the
foundations for a strategic
partnership between the two
companies. Based on this
agreement up to €400 million over the next five years
will be invested in manufacturing cars in Iran and the
investment will contribute to
facilitate the development of
a competitive manufacturing
base for producing, launching and marketing Peugeot
208, 2008 and 301 models,
fitted with latest-generation
engines.
Hashem Yekehzare IKCO
CEO said in this respect,
“IKCO and Peugeot will
soon set up a new JV company which will manufacture
latest-generation Peugeot vehicles based on a platform
that will also be used by Iran
Khodro to develop its own
vehicles.”
He also added IKCO would
take advantage of these products’ export market in the
Middle East and North Africa
(MENA region).
Referring to the current number of 4 million Peugeot cars
on the roads in Iran, IKCO
CEO claimed, “Some Peugeot
cars are already being manufactured in IKCO and this
new cooperation agreement
will provide the ground for
supervising the production of
these cars besides reinforcement of after-sales service.”
Commenting on this new
agreement, Carlos Tavares,
Chairman of PSA Peugeot
Citroën’s Managing Board,
said: “This strategic agreement turns the page on the
period of international sanctions and enables PSA and
Iran Khodro to start a new
chapter in their cooperation
history. Our shared ambition
is to offer our loyal customers high-tech products to deliver mobility that meets the
Feb 2016 ikco vision 11
INT,L COOPERATION
highest comfort, safety and
environmental standards.”
In the meantime, IKCO and
PSA published a new press
lease after signing this cooperation agreement as saying,
“Coming one week after international sanctions were lifted,
this agreement marks the beginning of a new chapter for
both partners. The agreement,
which will be backed up by
technology transfers and significant levels of local content,
will come into effect once it is
implemented, i.e., around mid2016. The first vehicles will
roll off the production line at
the Tehran plant in the second
half of 2017.”
According to Yekehzare, the
strategic partnership with
PSA will serve as a unique
platform, for both parties to
capitalize on each other’s
competitive advantages; especially given the scale, technology and long term outlook
that the parties are able to
bring to their cooperation,
301
12 ikco vision Feb 2016
bringing cost effective and
the best automotive technology to the customers.
The Iranian market reached a
peak of 1.6 million vehicles in
2011. It is supposed to regain
this level within 2 years to reach
2 million vehicles a year by
2022.
Iran is a key component of
PSA development strategy in
the Middle East & Africa region, which is PSA Peugeot
Citroën’s third-fastest growing international market.
IKCO, Daimler AG.,
Establish Joint Companies
The world-class German automaker Daimler AG., and Iran
Khodro Diesel (IKD) inked a
letter of intent, under which
the two embark on their strategic cooperation to set up two
joint companies.
The agreement is a big piece
of news as Daimler AG. Is the
biggest truck manufacturers in
the world and IKD as the subsidiary of biggest carmaker in
the Middle East (IKCO). The
signing of the agreement can
be in the interest of the two
sides as they can benefit from
each other’s advantages and
form a truck manufacturing
hub in the region.
The cooperation document was
signed by Hashem Yeke Zare,
CEO and President of IKCO,
and Wolfgang Bernhard, the
member of the Board of Management of Daimler AG., in
presence of top managers of
the two giant companies.
“Iran Khodro Company has
been following a drastically
different approach in its new
Feb 2016 ikco vision 13
INT,L COOPERATION
round of international negotiations, where the company
insists on joint investment and
participation,” Mr. Yekeh Zare
said.
He further stated that “IKCO
new revised international strategy will be in line with national interests. Diamler AG. and
Mercedes Benz have a trustable record of cooperation with
Iran Khodro company, contributing to a better future for the
two companies.”
“Daimler commercial vehicles
have always had an excellent
reputation in Iran. And right
now, there is a huge demand
for commercial vehicles, espe-
cially trucks. Following the
end of the sanctions, we are
planning a quick resumption
of our business activities in the
market there. The letter of intent with our local partner is an
important pre-requisite to resume business quickly,” Wolfgang Bernhard was quoted as
saying.
Having signed the cooperation
document, the two sides issued
a joint statement, in which they
unveiled their future plans to
resume cooperation.
The statement reads that Iran
Khodro Diesel, as a subsidiary of IKCO, is the biggest
truck manufacturer in the
Middle East and North Africa
(MENA), accounting for more
than 50 percent of the Iranian
market. The two companies
have been cooperating with
each other for more than half
a century.
Moreover, under the document,
the two sides have agreed on
joint investment to manufacture Mercedes Benz trucks and
powertrain components and
establish a joint sales company
where Mercedes Benz trucks
and their spare parts are sold.
Also, according to the agreement, Daimler AG,. will purchase stake at Iranian Diesel
Engine Manufacturing Com-
Daimler to Produce Three
Engines in Iran
High-ranking officials from the two Iranian
and German companies of IDEM and Daimler agreed on producing three engines in
IDEM – Iranian Diesel Engine Manufacturing Company.
Daimler officials who entered Iran after the
fulfillment of JCPOA, discussed signing
up in Iran’s market and industry and also
signed a memorandum of cooperation with
IKCO during meetings held in the presence
of IKD, IDEM and Daimler CEOs. The Cooperation aims at producing three diesel engines in Tabriz.
The engines to be manufactured in IDEM in
Tabriz will be 400 series diesel ones, 900
series meeting Euro IV and V standards for
heavy and semi-heaving vehicles and also
14 ikco vision Feb 2016
CNG 900 series covering Euro 6 standards,
enjoying 300hp and 7.7 liter of capacity.
In the meantime according to this memorandum of cooperation, the German Daimler will own 30% of IDEM shares, based on
pany (IDEM).
In addition, the two companies
are studying launching a joint
venture to sell commercial vehicles. To achieve the goals,
Diamler AG., has announced
it will open its office in Iran
within two to three months.
Additionally, in a statement by
Daimler AG., it has been stipulated that Despite the sanctions, Iran was one of the largest national economies in the
Middle East, with a nominal
gross domestic product (GDP)
of 415 billion US dollars in
2014 and industry accounts for
almost half of the Iranian national economy.
According to Iranian Industry, Mining, and Trade
Minister Mohammad Reza
Ne’matzadeh,
more
than
200,000 trucks will be replaced in the upcoming years.
The German Daimler AG. has
also been mindful of sales and
after-sales plans and has let
slip in the report that “with the
signing of cooperation documents, Diamler is preparing a
re-entry into Iran’s market. The
company’s first CKD deliveries of Actros and Axor trucks
are slated to be manufactured
and sold in Iran before the current Iranian year ends (March
21).”
Daimler Trucks is pursuing the
aim of establishing an even
firmer foothold in the local
market by revitalizing the engine cooperation with IDEM
and establishing a sales joint
venture.
Daimler is looking into restructuring and professionalizing all sales and after-sales
activities of Govah Aftersales Company and transfer it
to the join company of Daimler and IKCO. All these initiatives clearly indicated that
the German vehicle giant has
committed itself to economic
and social developments in
Iran.
which an extended cooperation in manufacturing new products and updating the used
technology will be guaranteed.
It’s noteworthy agreeing upon Daimler’s
strong presence in Iran’s commercial vehicle industry, Yekehzare IKCO CEO and
Wolfgang Bernard Daimler’s board member
signed related documents.
IDEM is a diesel engine manufacturer in the
industrial zone in the North West of Iran.
This company was first put into production
in 1972 with the joint investment of Iran
(70%) and Daimler (30%).
The company manufactures more than
12000 diesel engines per annum and also
exports engines to other countries including
Germany.
Feb 2016 ikco vision 15
NEW PRODUCT
Mass Production
of 1st Turbocharged Engine
Iran Khodro Industrial Group
started mass production of
Iran’s first turbocharged engine which is set to be mounted on IKCO Soren.
The production began officially during a ceremony
attended by high-ranking industrial officials at IKCO site
including the advisor to Is-
16 ikco vision Feb 2016
lamic Revolution Leader Ali
Akbar Nategh-Noori, Minister of Industry Mohammad
Reza Ne’matzadeh, Head of
Industrial Development and
Renovation
Organization
Seyed Reza Norouzadeh as
well as a number of top managers from Industry Ministry
and Iran Khodro.
The Turbocharger Project is
the fruit of hard efforts of
Iran Khodro’s experts and
engineers. The mass production process began after the
accomplishment of design
process and prototype development for the engine.
Now by using turbocharger
technology in EF7 Engine de-
velopment, IKCO has turned
itself into one of the main
holders of this advance technology in the world.
“The mass production of
Soren equipped with turbocharged engine is viewed as
a considerable industrial and
scientific development across
the globe,” said IKCO vicedeputy CEO of NPD (New
Product Development) center
and also the Turbocharger
Project manager, Keyvan
Vaziri.
He also cited turbocharger
technology as a long step in
enhancing Soren’s engine
quality to produce more power and torque by forcing further air into the combustion
chamber.
Vaziri said international car
manufactures take advantage
of the turbocharger technology for producing more power,
adding: ”Forcing a 30 time
more air into the combustion chamber and increasing
motor output up to 40% are
among the main features of
the new technology.”
He cited creativity, innovation, social responsibility and
gaining customer satisfaction
as the main outcome of the
technology.
“Consuming only 7.3 liter
per 100 km, the turbocharged
engine produces 155hp with
some 215nm torque. Meanwhile, as a 1700cc engine its
power amounts to the power
Turbocharger technology as a long
step in enhancing
Soren’s engine quality to produce more
power and torque
by forcing further air
into the combustion
chamber
of a 2400cc engine and its
pollution levels to a 1600cc
engine,” he noted.
The IKCO vice-deputy CEO
also said the emission standard of the technology is Euro
IV adding a 36 to 40 percent
of further power, a 40 percent
boost in torque, a 7 percent
decrease in gas consumption
and a 13 percent emission
decrease are among the main
advantages of the turbocharger technology.
He said IKCO has already
developed an intercooler system for the turbocharger.
“IKCO has adopted an integrated quality management
system to fulfill its main targets from supplying spare
parts to offering after-sale
Feb 2016 ikco vision 17
NEW PRODUCT
services. It has also employed some other measures
to enhance its products and
services,” he said.
He went on saying that in
line with the new technology, IKCO has designed
new parts including gearbox, engine management
system, some fueling and
air systems, exhaust pipe,
cooling system and an
electrical and electronic
network.
For his part, the Industry
Minister said enhancing their
products’ quality is the main
goal of today’s car manufacturers across the globe adding
they have to put their focus
18 ikco vision Feb 2016
In line with the new
technology, IKCO
has designed new
parts including gearbox, engine management system,
some fueling and
air systems, exhaust
pipe, cooling system
on the earlier stages of production such as design.
Addressing the opening cer-
emony, Ne’matzadeh went on
saying that gaining customer
satisfaction has been stipulated as the main target in the
programs and policies developed for this field.
“For the time being, 16 to 17
million vehicles are moving
on the streets of the country.
This comes as the Iranian car
manufacturers produce over
1.5 million vehicles per year
and the figure is expected
to reach three millions by
1404,” he said.
He concluded that all
walks of life have to pay
a visit to IKCO’s production lines within industrial
daily tours.
GLOBAL SALES
Export, the Main
Focus of IKCO
“IKCO cars can suit our customers’ tastes in the domestic
market, whether the cars are
qualified enough to be exported.”
Addressing the audience during a speech in Soren TC mass
production ceremony, Yekehzare also declared, “We acknowledge cooperation with
famous carmakers, however
what takes place in IKCO New
Product Development Center
is what we honor; the accomplishment that’s going to improve and continue in the future as well.”
According to Yekehzare the
achievements in designing and
producing powertrains or cars
can back IKCO in its negotiations with foreign companies.
“We have shown improvements in
body, trim and chassis design
in car and part making and at
the moment our main objective is to design a platform,
which is impracticable, neglecting powertrain, “ claimed
IKCO CEO.
Referring to gaining engine,
gearbox and suspension technology as the gateway to car
manufacture, he added, “We
are going to roll out an IKCObranded car next year.”
Considering cost reduction
measures, Yekehzare mentioned, “A noticeable cost
reduction in body sheets
and other financial costs
leaded to
over
1000 billion toumans of savings in 2015, which itself
boosted IKCO stocks value in
the same year after dropping
for two years.”
“Export is now our main focus as we have targeted the
production of three million
vehicles by 1404, one third of
which to be exported,” he asserted.
He finally concluded that quality, after-sales service, and new
product development were his
company’s main targets.
Feb 2016 ikco vision 19
PRODUCT
1400 Turbo Engines to Be
Produce By Next Two Month
Iran Khodro Engine Research
Center has taken big step toward development of turbocharge and natural aspiration
versions of EF7 engines and in
designing of a three cylinder
engine.
IKCO CEO Deputy in Parts
and Components Production,
Jamshid Heydari Kondori said
the car manufacturer is set to
produce 1400 turbo engines
(EFT) for Soren by the next
two months and the development of the current turbo engine is based on new demand
for it in the market.
“Our main goal is to cut the
costs and produce high-quality
engines. To this end, we have
adopted different strategies,”
20 ikco vision Feb 2016
he said.
He said at present, IKCO is
producing on average 250
units of EF7 engines each day,
adding:”Given to the growing
public demands and satisfaction, we have decided to raise
the number to 500 engines in
the next Iranian calendar year.”
Heydari Kondori also referred to the IKCO’s customers’ satisfaction with vehicles
equipped with XU7 engines
saying the manufacturer is
now determined to increase its
daily production to 1000 units
of engines in the next Iranian
calendar year. “This is the customers’ demands and satisfaction which determines the kind
and number of IKCO produc-
tion,” he said.
He cited promotion of TU5 engines as one of the main development plans of IKCO, saying: ”We have already initiated
some joint projects with SAPCO to bring the engines standards up to the level of international standards announced by
Iranian Environment Organization.”
The deputy CEO then emphasized that with the implementation of its projects; IKCO
would cut harmful emissions
of TU5 engines and promote
its standard to Euro 5.
Heydari Kondori also noted
that IKCO has achieved unprecedented achievements in
its efforts to change Peykan’s
production line into an advanced and smart production
line of TU3 engine. He noted
that the achievement gained
mainly by devoted IKCO engineers under the West sanctions.
He put the number of daily
production volume of TU3 at
250 units saying the engine is
installed on Peugeot 206 type
2.
Touching upon Motor Diesel’s
project (EFD(, the IKCO official said the draft modeling
and the relative technical and
engineering tests have been
carried out successfully. So,
IKCO is completely ready to
start the engine’s mass production.
Daily Production
Surpasses 2,000
Vehicles
Iran Khodro Company has managed to considerably
increase its daily production and since the beginning
of New Year.
Now the car manufacturer produces over 2,100 cars
on a daily basis which is near to 100 percent higher in
comparison with previous months.
IKCO has produced 378,939 cars during 10 months
from March 21, 2015 (beginig of Iranian year) to Jaunary 8, 2016.
The greatest share of the production falls respectively
to Pars with 89,675 units and Peugeot 405 with 89,641
units, Peugeot 206 with 80,025 units and Samand with
64, 620.
The statistics of other cars produced during the mentioned period is as follows:
14,986 units of Tondar, 13, 431 Arisun, 13,100 Dena,
12,172 Runna, 1040 Suzuki Grand Vitara and 266
units of other products.
Feb 2016 ikco vision 21
EXHIBITION
IKCO to Produce Cars in Oman
Islamic Republic of Iran’s solo exhibition in
Oman was held in the presence of the Omani
and Iranian Ministers of Industry who also
signed a significant contract, based on which
the Omani side and IKCO will be committed
to setting up a trilateral company.
According to this cooperation agreement the
Omani side including the government and private sector with 80% of the financial investment and IKCO with 20% of investment in
the technological, engineering and technical
services of the production line will establish
Dena and Runna production lines in Duqm
free Zone.
The first produced cars will be assembled
after Iran dispatches the required SKDs. Afterwards the company will be equipped with
22 ikco vision Feb 2016
paint and body lines which will turn it into a
region-based plant to manufacture IKCO vehicles for the Persian Gulf and North African
countries.
Meanwhile, Alsunaidy the Omani Minister
paid a visit to IKCO pavilion before signing
the contract and praised IKCO proficiency in
producing technical products.
During Iran’s solo exhibition in Duqm IKCO
showcased eight different cars like Dena,
Runna, new Soren ELX and Samand LX powered by EF7 engine. Moreover IKCO diesel
branch i.e. IKD displayed diesel CVs like
Arian minibus, Arna mini truck and Tunland
pick-up.
ISACO and TAM, the other two subsidiaries
of IKCO also presented their products as auto
spare parts and a CO2 welding robot.
Considering Oman as the gateway to the Persian Gulf Cooperation Council’s states and
regarding the regional pact between all members, the license to import and sell products in
Oman works for other member states as well.
Oman is also a member of WTO and based on
the related regulations there is a 5% tariff on
imported cars, which has turned this market
into a competitive one. In the meantime the
short distance between the two countries of
Iran and Oman and the common cultural issues also allows IKCO to enjoy a competitive
advantage in Omani market.
The 3rd solo exhibition of the Islamic Republic of Iran was held in Muscat on January 2730. The Iranian producers showed their latest products in various fields as oil and gas,
petrochemicals, steel, chemicals, food, insurance, constructional and vehicles.
Feb 2016 ikco vision 23
in the press
Ulusalkanal
Iran has produced
the new turbo engine
Iran has started mass production of turbo-shaft engines. engine
developed by Iranian engineers, “the second generation of the
domestic auto engine” title carries. Embargo prepared to export
cars produced after the removal of the design and production
director of Iran Khodro company Keyvan Vizier National anllat
of the target channel.
The second generation of Iranian domestic automobile engine
“Soren Turbo” ceremony began with the series production.
Which aims to produce 3 thousand motor end of the year Iran
Khodro company is preparing for installation in vehicles in the
next year 10 thousand new generation turbo engine production
line. Speaking at the ceremony, Iranian production series Mining
Industry and Trade Minister Mohammad Nematzadeh, produced in conjunction with the lifting of the
sanctions said the cars will be entered into the period of expulsion.
Reuters
PSA Peugeot Citroën to Create a Joint
Venture in Iran with Iran Khodro
During President Hassan Rouhani’s state visit to Paris, PSA
Peugeot Citroën (Paris:UG), which has operated in Iran for more
than 30 years, and Iran Khodro signed a joint venture agreement
to produce latest-generation vehicles in Iran.
This 50/50 joint venture lays the foundations for a strategic partnership between the two companies. This joint venture is expected to invest up to €400 million over the next five years in manufacturing and R&D capacity. This investment will contribute to
facilitate the development of a competitive manufacturing base
for producing, launching and marketing Peugeot 208, 2008 and
301 models, fitted with latest-generation engines.
24 ikco vision Feb 2016
Tasnim
Italy’s Fiat to Bring American
Car Technology to Iran: IKCO
TEHRAN (Tasnim) – The managing director of Iran’s leading
car manufacturer, Iran Khodro Company (IKCO), on Sunday
said US car manufacturing technology will be indirectly imported to Iran through cooperation with the Italian company Fiat.
As regards cooperation with American car manufacturers, the
IKCO sticks to the policies of Iran’s ministry of industry, mine,
and trade, Hashem Yekke Zare said in a press conference held in
Tehran on new deals with foreign auto manufacturers.However,
he added, the technology of American cars can be indirectly imported to the country through the partnership of IKCO and Italy’s Fiat. Fiat is a strong auto manufacturing complex,” he said,
adding that IKCO has made a good choice by selecting Fiat as
its fourth foreign partner. Meanwhile, Chairman of Iran-Italy Joint Chamber of Commerce Ahmad Pourfallah announced that a joint company will be formed between IKCO and Fiat.“No deal has been sealed
yet but satisfactory progress has been made in the talks, which will hopefully result in good collaboration
between the two car-makers,” he told on Sunday.
Bloomberg
Daimler Trucks to Return
to Iran With Production, Sales Accords
Daimler AG reached preliminary agreements to restart sales and
local production of trucks in Iran as the lifting of global trade
sanctions opens the oil-rich Middle Eastern nation to European
investments.Daimler Trucks will cooperate with Iran Khodro
Co., the country’s biggest auto producer, on engines and powertrains, and plans to reinvest in the companies’ diesel-engine
venture, the German manufacturer said Monday in a statement.
Under a second accord, Mammut Group will distribute vehicles
from Daimler’s Mitsubishi Fuso unit.
“There is a huge demand for commercial vehicles, especially
trucks,” Wolfgang Bernhard, head of Daimler’s truck and bus
business, said in the statement. “We plan to quickly resume our
business activities in the market there.”
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