A Canadian carmaker is set to join China's Chery Automobile and the Iranian giant Iran-Khodro in a joint project to manufacture cars in Iran.
Toronto's Solitac Inc. plans to join the Chinese biggest car producer, Chery Automobile, and Iran's major auto manufacturer, Iran Khodro, to produce low budget vehicles in Iran.
Iran Khodro and Chery Automobile have already signed a $370m deal to set up a car manufacturing plant in the northern Iranian city of Babol.
According to the head of the Iranian branch of Solitac Inc, Ali Zara, the idea of such a partnership was initiated by the president of the Toronto office, Hossein Bavafa, and that more than a year was spent on finalizing the deal.
"We went to them last year and started this venture," said Zara.
"Solitac Inc. decided that there was a gap in the Iranian car market at the low end, which is dominated by a South Korean version of the Ford Fiesta," he concluded.
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