Dacia Logan production in Iran, a quarter of expectations

The Renault partners in Iran produce four times less cars than planned because of the sanctions imposed by the United Nations. European providers can not export their products to Iran, while Western banks can not offer credits for Iranian companies, the result being in all Western producers working far below possibilities, Automotive News informs.

The joint venture company formed by Renault and local companies Iran Khodro and Saipa produce 1,200 Logan cars weekly, despite their 5,000 units capacity. Renault first expected to sell at least 10,000 units of the Logan model under the local brand of Tondar ’90 (Thunder). After entering the market one year ago, the company already faces tens of thousands of orders.

The production is also affected in other producers’ facilities, at Citroen, Peugeot and Volkswagen mainly, since all companies rely on imported parts.

Iranians bought 1.1 million news cars in 2007, and the prognosis for 2008 is also around one million units.