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IDRO-Renault MOU benefits the whole society


IDRO-Renault MOU benefits the whole society
The IDRO chairman has hailed the recent memorandum of understanding signed with Renault as an auspicious event, saying it can provide Iranians with quality and cheap cars.
Dr. Moazami made the remarks on a live TV program, emphasizing that cars are no longer a luxury and “we have to do our best to manufacture cars which live up to our people’s expectations in terms of quality and price.” 
Referring to why they picked Renault as their partner, the IDRO chairman said, “What matters for us when discussing a contract is international brands not countries, and from among 10 to 15 world-known automakers we reached an agreement with the French automaker considering the conditions we had already announced.”
On if Iranian automakers could also ink the MOU, he said Iranian automakers face no limitation in entering partnership with foreign automakers.
“Iran Khodro and SAIPA have recently inked agreements with Citroen and Peugeot.” 
“IDRO doesn’t aim to enter into the automotive industry and its only goal is to upgrade the capabilities of domestic automakers,” Dr. Moazami emphasized.
Dr. Moazami also highlighted privatization as the IDRO’s mission, saying the organization divested up to nearly $172.42 million of its stake to the private sector last year, and plans to divest up to nearly $342.85 million this years.
He also referred to the potential of Iranian auto parts manufacturers and said more than 500,000 Iranians are involved directly and indirectly in the industry.
“There are educated, experienced, and young engineers who can find new opportunities when connected to the Renault’s spare parts global market.”
The agreement with Renault has been drafted in such a way that is in line with the country’s national interests, he emphasized.
On if the French company turns out not to honor its own side of the bargain, Dr. Moazami stressed that measures such as compensations and fines have been taken.
Providing more details about the contract, Dr. Moazami pointed out that 40 percent of products will be manufactured by domestic capacity and the French company is committed to export 30 percent of the annual output to target markets.
Also under the agreement, Renault will set up a regional research and development center in Iran, he concluded.