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Syria-Lebanon-Iran
Iran suspends Renault car project
2006-04-19
TEHRAN, April 18 (Reuters) - Iran has suspended a joint venture project to produce the L90 or LeHeap Logan car with French automaker Renault in the Islamic republic, a government official said on Tuesday. Analysts said the move would be a further blow to foreign investment in Iran, seen as crucial for creating jobs for the country's young population. It also comes at a time of increasing international tension over Iran's nuclear programme.

A dispute over exports of the no frills car appears to be at the heart of the dispute. "Iran's industry and mines minister has ordered the suspension of the L90 project until Renault company considers this ministry's views regarding the project," said Mohammad Karimi, a spokesman for the ministry.
Translation: the Mullahs want more money.
An official for the L90 project in Iran said that Renault had accepted that 60 percent of the car should be built inside Iran, the car's platform could be used to build other models and that the L90 would not enjoy a monopoly in its class of car in Iran. But he said: "the main problem remains where Iran wants to have a share of this company's (Logan) exports".

Renault said it was working with Iran to find a solution to the dispute. "The (Iranian) government wants to put the emphasis on exports, we are studying together all possible solutions," Renault spokesman Stephane Farhi told Reuters.
An Iranian-made, French-designed car. That's a sure fire Toyota beater.
He said there was no timetable for the discussions.

Renault has said it had set up a joint venture with an Iranian partner to produce the L90 in Iran from 2006. The L90 is a car that Renault already produces in Romania and which forms a key part of its strategy to boost sales in emerging markets.

Saeed Leylaz, an analyst who has close links to people involved in the project, said the decision would send a bad signal to international investors. "It is a very bad sign to the world community. It shows they can't trust us again," Leylaz said, adding that it will also have a major impact on the local car parts industry. "In this case, we are losing our internal reputation because hundreds of suppliers are involved in this project," he said.
So the French get burned trusting the Mad Mullahs™. Where's my femtoviolin?
Posted by:Steve White

#6  I dunno. Having once owned one, I would think if you want car bombs down the road, Renault's would make nice platforms. You wouldn't even need to add the bombs on most of them.
Posted by: tu3031   2006-04-19 10:59  

#5  Having once been involved in the production of Renault's here in the US this strikes as the first intelligent thing the mullahs have done.
Posted by: Cheaderhead   2006-04-19 10:51  

#4  oh fantastic photo! Guess there gonna divert funds to the lawn mower powered flying boat thingy, Rofl.
Posted by: ShepUK   2006-04-19 06:21  

#3  Also, there goes the IRGC's only hope of learning to stop the M1 tank.
Posted by: JosephMendiola   2006-04-19 01:47  

#2  I read an article that was very favorable to the Logan. They're the cars for the fast rising middle class in India and other developing nations...
Posted by: Seafarious   2006-04-19 01:29  

#1  "It is a very bad sign to the world community. It shows they can't trust us again still."
Posted by: Fordesque   2006-04-19 01:15  

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