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Iran Khodro establishes JV with Chinese manufacturer Jinhua Qingnian
5th September 2006

The Iranian state-controlled Iran Khodro and Jinhau Qingnian Automotive Co. have agreed to establish a joint venture assembly plant in Taian City in the eastern Chinese province of Shandong to manufacture the Iranian-designed but PSA-derived Samand saloon car, according to the China Economic Daily’s website yesterday.

Annual production at the plant will begin with 30,000 units per annum, while both parties are targeting an eventual volume of 120,000. Jinhua Qingnian will hold a 70 percent stake in the joint venture and the Iranian company will hold 30%.

PSA Peugeot Citroen, which has existing joint projects with Iran Khodro, will supply components to the Chinese plant, according to the Chinese source.

- Over 3.53 million vehicles were sold in the six months to June, up 26.7% year-on-year, according to China Association of Automobile Manufacturers data reported in July. Domestic car production rose to 1,89m units, total Chinese vehicle production having risen 28.9% year on year to 3.6 million units, of which 1.89 million units were passenger cars.

(www.iranfocus.com)

- Great Wall Motor, China’s biggest light commercial vehicle manufacturer, is to start assembling LCVs in Russia next year, with plans to invest ca. $100m in an assembly plant in Tatarstan. The project reportedly has the blessing of both the Russian and Chinese authorities.

 

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This is the car that Iran Khodro plans to export (and later produce) to China - Soren, a more expensive version of Samand.

It is based on Peugeot 405.

 

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Youngman and Khodra ready to seperate already?

It seems that Jinan Youngman, who recently went on a joint venture shopping spree is ready to terminate its joint venture with the Iranian Khodro group.

Youngman recently signed up with Proton to bring the Gen2 Racer to China under an OEM re-badging deal, Youngman also signed up with ZAP to possibly make some kind of electric car, and also with the Iranian car company Khodro

It seems that the decision to separate is a mutual one, as Youngman wish to further their own brand, Europestar (the brand which carries the Gen2 racer) and Khodro have signed a deal with Chery in Iran which they wish to concentrate on.

The Youngman Khodro joint venture would have seen the Iranian marque produce its cars in Tai’an, Shandong province. The two parties reportedly injected 60 million dollars into the joint ventureship, and were planning to pour upto 200 million dollars into it once production was up and running. Youngman have a 70 percent stake in the deal, and Khodro own a 30% stake. The original plan was to produce the Khodro Saren, and the Samand LX in China. The Samand LX seems to be based on an older Peugoet 405 design.

The factory that was planned to be producing Khodro cars in late 2008, isnt yet built - this automotive divorce (clearly the result of a shotgun joint venture) may well be a messy one.

source: China Car Times

China's Youngman Auto Group and Iranian automaker Khodro are in talks for a divorce, Shanghai Securities News reported today.

It's very likely that Youngman Auto and Khodro's cooperation may end up in a divorce, a senior Youngman Auto official said on deep background.

Youngman Auto is currently focusing a joint program with Lotus cars of the United Kingdom and Proton Auto of Malaysia while Khodro is seeking cooperation project with Chery Auto in Iran, the Shanghai Securities News said.

Back in 2006, China's Youngman Auto and Iranian automaker Khodro formed a 70:30 joint venture project in the city of Tai An, Shandong province. The two sides have injected US$60 mln in initial investment. The joint plant is expected to start production by June 2008.

The project, with a projected total investment of US$200 mln, is designed to produce 120,000 vehicles annually. In this joint project, Iran Khodro holds 30 percent stake and Jinhua Young Man Automobile holds the remaining 70 percent, Xinhua News Agencey said.

source: Gasgoo.com

 

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Iran Khodro to launch a new car model both in Iran and China.

May 21, 2008 - It's rumored that the tie-up between Iran Khodro Industrial Group (IKCO) and Jinhua Youngman Auto may be on the verge of breaking down, but actually the largest Iranian automaker is to launch a new car model here in China and in Iran simultaneously.

"The cooperation between Iran Khodro and Jinhua Youngman is still going well, not ended, not suspended," said S. K. Hojjat, General Manager of Iran Khodro China, adding that chief executives of both sides met last October and decided that a new model code-named X12 will be built in their joint venture and then be launched both in the Chinese and Iranian markets.

"It's designed and developed independently by Iran Khodro," stated Mr. Hojjat. The X12, priced lower than 100,000 yuan ($14,300) for the basic model and a little higher than 100,000 yuan for high-end models, is scheduled to hit the Chinese market in early 2009.

Iran Khodro and the Chinese luxury bus manufacturer Youngman Auto Group signed a cooperation deal in 2006. The two partners invested a total of $60 million for the JV, in which Iran Khodro holds 30 percent shares and Youngman holds the other 70 percent.

The construction of their TaiAn plant in Shandong Province is now almost finished and the manufacturing facilities are going to be established. The two sides initially planed to produce Iran Khodro's own-brand sedan -- Samand, but later "as the joint venture company has to be more feasible," they changed it to X12.

The Samand Siren was showcased at the 2007 Shanghai Auto Show, but received a lukewarm response from the public. The X12 to be produced is said to be slightly similar to Peugeot 206, and aims at 70 percent localization -- to source 70 percent of the components from the Chinese suppliers in the end.

The biggest automotive manufacturer in the Middle East is now looking for OEM suppliers in China; for those highly demanding parts that local suppliers can't make, Iran Khodro will use imports from Iran.

Also there's possibility for the JV to export some components of the car or the CBU (completely built-up) cars into Iran, according to Mr. Hojjat.

IKCO Diesel, the commercial vehicle arm of the group, has already signed a contract with China National Heavy Truck Company (CNHTC), for importing HOWO trucks from China. The two sides are set to renew their contract, but so far "no plans yet to start commercial vehicle production in China".

source: Gasgoo.com

Previously, we perhaps mistakenly reported that the Iranian Khodra may well break up its joint venture with Chinese company Jinan Youngman, it appears that the joint venture is far from breaking up, and 2009 will in fact see Khodro simultaneously launch a new model in both China, and Iran.

The Khodro self designed and built X12 is set to hit the market in mid 2009. The factory that is going to build the X12 will be finished by the end of 2008. The X12, according to Chinese reports, is similar in style to the Peugeot 206S and will cost less than 100,000rmb when launched.

Khodro plan to source 75% of the cars parts from Chinese suppliers, which will keep costs down.

The question remains, will Chinese consumers buy Iranian? Many consumers are very familiar with the automotive cultures of Western Europe, USA, and East Asia, but will they connect with Iranian motors?

source: China Car Times

 

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Coorperation between IKCO and Youngman dead before it even started.

July 21, 2008 - Youngman Automobile Group Co., one of China's leading manufacturers of luxury buses and high-quality commercial trucks, has halted the sedan production project with Iranian IKCO Group and the Tai'an factory, which was scheduled to produce Iran sedans, is now to be used for making the British Lotus model, reports Beijing News today.

Before cooperation with UK automaker Lotus, Youngman has planned to introduce the Samand model under IKCO since the company signed agreement with IKCO early in 2006. Now that the Samand model is out of date and couldn’t cater to the market, Youngman finally gave up this project, said Cui Wei, vice president of Youngman last week.

An earlier report said that in this April, IKCO officials proposed to replace Samand with another model (code-named X12), which is partly similar to Peugeot 206, and IKCO would like to use on this car the Peugeot technology that the company had acquired from PSA. But Youngman denied this saying.

According to Cui, it is impossible for PSA, IKCO’s partner, to allow Youngman to produce Peugeot cars. Even worse is that Iran products are subject to restriction in global market, so Youngman ceased this project at last.

source: Gasgoo.com