Joint Press Statement by Iran Khodro and Peugeot

On the 19th of July, 2008, Jean-Philippe Collin, Automobiles PEUGEOT's Managing Director, and Dr. Manouchehr Manteghi, Iran Khodro's President and Chairman of the Board, have jointly celebrated the 20th anniversary of their companies partnership.

The signature of the 405 Agreements in 1988, a modern passenger car of the time which was awarded the "car of the year " in Europe, started a success story which led to the Pars Agreements in 1998, the launch of the 206 hatchback, another " car of the year " widening the Peugeot range in Iran, and to the joint development of the 206 Sedan unveiled at the Frankfort International Motor Show in 2005 which was and is a recurrently looked-for car in the Export Markets.

During these 20 years, the two Parties have been always putting forth initiatives to improve and upgrade their partnership. These efforts transformed the notion of "Production under License" in 1988 to the paradigm of joint development of new products to meet local and regional market requirements in 2005. In other words, the initial industrial co-operation has been elevated to a strategic partnership including:

• The promotion of exports with more than 25000 cars / year exported by IKCO and distributed through the Peugeot network in 40 countries.

• The design of new models and variants.

• Technological know-how transfer and the development of CNG basedEngines

• The establishment of a Peugeot Global Sourcing Office in Tehran.

The two Partners in their next step toward enrichment of their partnership will evolve into a Strategic Alliance in local and regional markets through:

• Joint design and development of new products to targe the needs of local and regional markets

• Introduction of new products equipped with Diesel engines

• Further development of Low Emission technology

• Introduction of new Low Consumption technology

• Establishment of a Joint CNG Technology Research Center

• Establishment of a Joint Venture for the sales and after sales services of Peugeot branded CBU cars to be introduced in Iran in the coming years
   

This has also been the occasion of announcing a further step foroward with the joint study of: 2 complete ranges of new products, passenger Cars and LCVs, state-of -the-art in terms of technology, quality and safety, CNG compliant and fuel efficient, for the new commercial activities.