French carmaker PSA Group will source 30% of parts for cars that will be assembled in the Algerian plant from Iran, said a senior official of Iranian Auto Parts Manufacturers Association. PSA signed deals worth €700 million with Iran Khodro last May for the joint production of 200,000 cars per year. The news shows that the PSA plant in Algeria will be largely supplied with parts from abroad turning it into a mere assembly plant. Last month, PSA executive vice-president for purchasing, Yannick Bézard, invited Iran Khodro to set up shop in Algeria where Peugeot is launching a manufacturing unit. The figures are but the tree that hides the forest, when considering that Algeria’s aim to develop a local car industry has turned into “disguised imports”.

Source: The North Africa Journal February 11, 2018 13:18 UTC