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53-1367: Iranian automobile manufacturer; joint venture of Iran Khodro and Stellantis [REDACTED] This article needs additional citations for verification . Please help improve this article by adding citations to reliable sources . Unsourced material may be challenged and removed. Find sources:   "IKAP"  –  news   · newspapers   · books   · scholar   · JSTOR ( October 2017 ) ( Learn how and when to remove this message ) [REDACTED] This article needs to be updated . Please help update this article to reflect recent events or newly available information. ( October 2022 ) IKAP [REDACTED] Company type Joint venture Industry Automotive Founded 2016 ; 8 years ago  ( 2016 ) Headquarters Iran, Tehran Area served Worldwide Key people Ashkan Farbod (CEO) Products Automobiles Luxury Vehicles Commercial Vehicles Automotive parts Services Automotive finance Vehicle leasing Vehicle service Owners Iran Khodro (50%) Peugeot (50%) Website www .ikco-peugeot .ir IKAP ( I ran K hodro A utomobiles P eugeot)

106-483: A Diesel Particulate Filters (DPF) as well as a new Exhaust Gas Recirculation ( EGR ). The 1.5-liter turbodiesel uses advanced technology to deliver strong power and torque of 300Nm. Iran Khodro has designed the EF4 & EFD itself. IKCO 3FX engine family is a series of straight-three cylinder engines in development by IKCO to be used on class A to class C vehicles. SAPCO' had been established in 1993 to manage

159-1013: A temporary partnership for the purpose of carrying out a particular project, such partnership can also be called a joint venture where the parties are " co-venturers ". The venture can be a business JV (for example, Dow Corning), a project/asset JV intended to pursue one specific project only, or a JV aimed at defining standards or serving as an "industry utility" that provides a narrow set of services to industry participants. Some major joint ventures include United Launch Alliance , Vevo , Hulu , Virgin Media O2 , Penske Truck Leasing , and Owens-Corning . According to Gerard Baynham of Water Street Partners, there has been much negative press about joint ventures, but objective data indicate that they may actually outperform wholly owned and controlled affiliates . He writes, "A different narrative emerged from our recent analysis of U.S. Department of Commerce (DOC) data, collected from more than 20,000 entities. According to

212-439: A 2.2 percent average ROA, while wholly owned and controlled affiliates in the U.S. only realized a 0.7 percent ROA." In European law , the term "joint venture" is an exclusive legal concept, better defined under the rules of company law . In France , the term "joint venture" is variously translated as "association d'entreprises", "entreprise conjointe", "coentreprise" or "entreprise commune". A JV can be brought about in

265-517: A company. By its formation, the JV becomes a new entity with the implications that: On the receipt of the Certificate of Incorporation, a company can commence its business. This is a legal area and is fraught with difficulty as the laws of countries differ, particularly on the enforceability of "heads of" or shareholder agreements. For some legal reasons, it may be called a Memorandum of Understanding . It

318-1017: A long-term relationship with European and Asian manufacturers including PSA Peugeot Citroën , manufacturing and assembling a number of models under license from these firms. In 2009, Peugeot 206, Peugeot Pars, Peugeot 405, Peugeot Roa, and Samand sedans were IKCO's export-bound cars sent to Azerbaijan, Iraq, Armenia, Uzbekistan, Turkmenistan, Syria and Afghanistan. As at 2012, IKCO products incorporate 5-10 percent of components imported from France . IKCO's parts imports from Peugeot accounted for 700-800 million euros ($ 572–654 million) per year. Iran has reached 98% of self-sufficiency in producing Peugeot 405 parts and 75% in Peugeot 206 parts. By ending year 2012, Peugeot cuts its relations with Iran Khodro due to international sanctions against Iran . Four years later, in 2016, after reaching Joint Comprehensive Plan of Action between Iran and E3+3 , Iran Khodro and Peugeot decided to make 50%-50% joint venture named IKAP to start

371-419: A new market, particularly emerging market ; to gain scale efficiencies by combining assets and operations; to share risk for major investments or projects; or to access skills and capabilities. Most joint ventures are incorporated, although some, as in the oil and gas industry , are "unincorporated" joint ventures that mimic a corporate entity. With individuals, when two or more persons come together to form

424-485: A principal disadvantage is absence of an interested and influential Chinese party. As of the 3rd Quarter of 2004, WFOEs had replaced EJVs and CJVs as follows: (*)=Financial Vventures by EJVs/CJVs (**)=Approved JVs These enterprises are formed under the Sino-Foreign Investment Act. The capital is composed of value of stock in exchange for the value of the property given to the enterprise. The liability of

477-498: A €70 million, 36-month contract with Iran's biggest car producer, Iran Khodro Group on for the development of four new models and to give the carmaker a second wind in research and development of new models. The agreement will help develop a modular automotive platform for four different vehicles, and the first passenger car of the medium segment of the market, a press release from the Italian firm said. IKCO has 12 production site around

530-659: Is a joint venture company between Iran Khodro and Stellantis , based in Tehran ; it was established in 2016. It produces some Peugeot models and imports other models in CBU for Iran market. The purposes of creating this company are manufacturing new Peugeot products in Iran and exports them to the Middle East and then the creation of Peugeot's production hub in West Asia. Products of this company in

583-404: Is allowed to enter into contracts with appropriate government authorities to acquire land use rights, rent buildings, and receive utility services. In this it is more similar to a CJV than an EJV. WFOEs are expected by PRC to use the most modern technologies and to export at least 50% of their production, with all of the investment is to be wholly provided by the foreign investor and the enterprise

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636-550: Is cooperating with Suzuki . Producing Suzuki Grand Vitara in IKCO's Site in Khorasan, IKCO will produce Suzuki Kizashi. In 2012, IKCO announced that at least 3% of the company's sales will be allocated to research and development. As of 2015, the company's 7-year strategic plans for product development are in body design, die making, suspension, powertrain, trim and car electronics. In 2017, Italian car design firm ' Pininfarina ' signed

689-592: Is described below. The EJV Law is between a Chinese partner and a foreign company. It is incorporated in both Chinese (official) and in English (with equal validity), with limited liability. Prior to China's entry into WTO – and thus the WFOEs – EJVs predominated. In the EJV mode, the partners share profits, losses, and risk in equal proportion to their respective contributions to the venture's registered capital. These escalate upwardly in

742-529: Is different from Wikidata Articles needing additional references from October 2017 All articles needing additional references Misplaced Pages articles in need of updating from October 2022 All Misplaced Pages articles in need of updating Joint venture A joint venture ( JV ) is a business entity created by two or more parties, generally characterized by shared ownership , shared returns and risks , and shared governance. Companies typically pursue joint ventures for one of four reasons: to access

795-465: Is done in parallel with other activities in forming a JV. Though dealt with briefly for a shareholders' agreement , some issues must be dealt with here as a preamble to the discussion that follows. There are also many issues which are not in the Articles when a company starts up or never ever present. Also, a JV may elect to stay as a JV alone in a "quasi partnership" to avoid any nonessential disclosure to

848-558: Is jointly held by Iran's Industrial Development and Renovation Organization , IKCO and Saipa . The agreement to form this joint venture was signed in March 2004. IKCO also manufactures trucks, buses and E-Class passenger cars under license from Mercedes-Benz . In a joint-venture with Daimler AG , Iran Khodro is to start production of sophisticated 900-class Mercedes-Benz engines ; Daimler states that Iranian-made engines will be exported to Germany . Among Asian automotive manufacturers, IKCO

901-464: Is what will happen if the firm is dissolved, if one of the partners dies, or if the firm is sold. Often, the most successful JVs are those with 50:50 partnership with each party having the same number of directors but rotating control over the firm, or rights to appoint the Chairperson and Vice-chair of the company. Sometimes a party may give a separate trusted person to vote in its place proxy vote of

954-505: Is within his total control. WFOEs are typically limited liability enterprises. Like with EJVs, but the liability of the directors, managers, advisers, and suppliers depends on the rules which govern the Departments or Ministries which control product liability, worker safety or environmental protection. An advantage the WFOE enjoys over its alternates is enhanced protection of its know-how but

1007-476: The World Trade Organization (WTO) around 2001 has had profound effects on foreign investment. Not being a JV, they are considered here only in comparison or contrast. To implement WTO commitments, China publishes from time to time updated versions of its "Catalogs Investments" (affecting ventures) prohibited, restricted. The WFOE is a Chinese legal person and has to obey all Chinese laws. As such, it

1060-450: The "constitution" of a company in these countries. The articles of association regulate the interaction between shareholders and the directors of a company and can be a lengthy document of up to 700,000 or so pages. It deals with the powers relegated by the stockholders to the directors and those withheld by them, requiring the passing of ordinary resolutions , special resolutions and the holding of Extraordinary General Meetings to bring

1113-614: The 1 million mark in 2005. Iran Khodro is one of the largest car manufacturers in Asia . It has established joint-ventures with foreign partners on 4 continents. For more than three decades, Iran Khodro produced the Paykan , a car developed from the Rootes Group 's Rootes Arrow range, best known as the Hillman Hunter . Paykan saloon car production was discontinued in 2005, almost thirty years after

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1166-456: The DOC data, foreign joint ventures of U.S. companies realized a 5.5 percent average return on assets (ROA), while those companies' wholly owned and controlled affiliates (the vast majority of which are wholly owned) realized a slightly lower 5.2 percent ROA. The same story holds true for investments by foreign companies in the U.S., but the difference is more pronounced. U.S.-based joint ventures realized

1219-626: The Founder at board meetings. Recently, in a major case the Indian Supreme Court has held that Memorandums of Understanding (whose details are not in the articles of association) are "unconstitutional" giving more transparency to undertakings. A JV is not a permanent structure. It can be dissolved when: Joint ventures are risky forms of business partnerships . Literature in business and management has paid attention to different factors of conflict and opportunism in joint ventures, in particular

1272-459: The JV's life, giving the option to the foreign investor, by holding higher equity, obtains a faster rate of return with the concurrent wish of the Chinese partner of a later larger role of maintaining long-term control. The parties in any of the ventures, EJV, CJV or WFOE prepare a feasibility study outlined above. It is a non-binding document – the parties are still free to choose not to proceed with

1325-528: The US) covering know-how and trademarks and supply-of-equipment agreements. The minimum equity is prescribed for investment truncated, where the foreign equity and debt levels are: There are also intermediary levels. The foreign investment in the total project must be at least 25%. No minimum investment is set for the Chinese partner. The timing of investments must be mentioned in the Agreement and failure to invest in

1378-461: The cases, the status of the formed enterprise is that of a legal Chinese person which can hire labor directly as, for example, a Chinese national contactor. The minimum of the capital is registered at various levels of investment. Other differences from the EJV are to be noted: Convenience and flexibility are the characteristics of this type of investment. It is therefore easier to find co-operative partners and to reach an agreement. With changes in

1431-618: The death of Mao Zedong in 1976, initiatives in foreign trade began to be applied, and law applicable to foreign direct investment was made clear in 1979, while the first Sino-foreign equity venture took place in 2001. The corpus of the law has improved since then. Companies with foreign partners can carry out manufacturing and sales operations in China and can sell through their own sales network. Foreign-Sino companies have export rights which are not available to wholly Chinese companies, as China desires to import foreign technology by encouraging JVs and

1484-495: The directors' decision to bear. A Certificate of Incorporation or the Articles of Incorporation is a document required to form a corporation in the U.S. (in actuality, the state where it is incorporated) and in countries following the practice. In the US, the "constitution" is a single document. The Articles of Incorporation is again a regulation of the directors by the stock-holders in

1537-662: The end of Arrow production (latterly as the Chrysler Hunter) in Britain . A pick-up version was still in production until 2015. Bardo Pick-up, pick-up version of Paykan, will be replaced by a new pick-up called the Arisun which is related to the Samand . Iranian-designed IKCO Samand , replaces the dated Paykan as Iran's "national car", and features a part-Iranian designed CNG/petrol dual-fuel engine in its Soren variant. The firm has

1590-3799: The first phase will be the Peugeot 2008 , Peugeot 208 , Peugeot 301 and Peugeot 508 . References [ edit ] ^ "IKCO-Peugeot Joint Venture (IKAP) Starts Working" . irankhodro.ir . Archived from the original on 21 October 2017 . Retrieved 22 June 2016 . ^ "Competitive Advantages of IKAP Vehicles" . ikco.ir . Retrieved 14 September 2016 . ^ "Iran to be Peugeot's Manufacturing Hub in ME, Africa" . iran-bn.com . Retrieved 16 September 2016 . v t e Iran Khodro Marques IKCO IKCO Diesel Subsidiaries/ joint ventures SAPCO SAMAND Investment IASCO IKAP (50%) IPCO TAM Co. Current IKCO vehicles Cars Dena Runna Samand Soren Sarir Tara Pickup trucks Arisun Historic vehicles Cars Paykan Pickup trucks Brado Current Joint-venture vehicles Cars Peugeot 206 Peugeot 207i Peugeot 405 Peugeot Pars Tondar 90 Crossovers/SUVs Suzuki Grand Vitara Former Joint-venture vehicles Cars Mercedes-Benz W211 Peugeot 407 Peugeot ROA v t e Stellantis Predecessors Fiat Chrysler Automobiles Chrysler Group LLC Fiat S.p.A. PSA Group Chrysler Europe Citroën Peugeot [REDACTED] Leadership John Elkann (chairman) Carlos Tavares (former CEO) Marques Alfa Romeo Chrysler Citroën Dodge DS Fiat Abarth Professional Jeep Lancia Maserati Opel Vauxhall Peugeot Ram Subsidiaries / joint ventures Comau FCA Bank (50%) IKAP (50%) Leapmotor (20%) Mopar PCMA Sevel Share Now Teksid (85%) Tofaş (38%) VM Motori Regional operations Argentina Australia Canada Europe India Ireland Japan North America Poland Serbia (67%) Factory locations Aspern Atessa Belvidere Brampton Buenos Aires Cassino Detroit Jefferson Mack Dundee Eisenach Ellesmere Port Figueruelas Gliwice Hordain Indiana Kenitra Kokomo Casting Transmission Kragujevac Luton Madrid Mangualde Turin Mirafiori Mulhouse Poissy Pomigliano d'Arco Porto Real Rüsselsheim Rennes Saltillo Sochaux Sterling Heights Szentgotthárd Toledo Complex Toledo Machining Toluca Trenton Trnava Tychy Vigo Warren Stamping Truck Assembly Windsor Related topics Chrysler World Headquarters and Technology Center Musée de l'Aventure Peugeot Stellantis Heritage Stellantis vehicles Stellantis platforms [REDACTED] Category [REDACTED] Commons Retrieved from " https://en.wikipedia.org/w/index.php?title=IKAP&oldid=1242875278 " Categories : Car manufacturers of Iran Iran Khodro Stellantis Joint ventures Hidden categories: Articles with short description Short description

1643-468: The following major ways: In the UK , India , and in many common law countries, a joint-venture (or else a company formed by a group of individuals) must file its memorandum of association with the appropriate authority. This is a statutory document which informs the public of its existence. It may be viewed by the public at the office in which it is filed. Together with the articles of association , it forms

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1696-654: The globe, 6 sites in within Iran's borders and 6 further sites in IKCO's main export markets. Domestic plants: Foreign sites: Russia, Syria, Turkey, Iraq, Azerbaijan, Ukraine, Egypt, Algeria and Bulgaria are among the most important target markets for the group. Export opportunities are restricted to relatively low volumes with $ 60 million worth of cars exported in 2007. By this Iran Khodro has ranked as 24th company among 100 top companies in Islamic world in year 2008. The Company has exported about 35,000 cars in year 2009. The company exported 40,000 units in 2010, including 30% of

1749-423: The government or the public. Some of the issues in a shareholders' agreement are: There are many features which have to be incorporated into the shareholders' agreement which is quite private to the parties as they start off. Normally, it requires noтуОЧ submission to any authority. The other basic document which must be articulated is the Articles, which is a published document and known to members. This repeats

1802-547: The indicated time, draws a penalty. Co-operative Joint Ventures (CJVs) are permitted under the Sino-Foreign Co-operative Joint Ventures. Co-operative enterprises are also called Contractual Operative Enterprises. The CJVs may have a limited structure or unlimited – therefore, there are two versions. The limited-liability version is similar to the EJVs in status of permissions – the foreign investor provides

1855-583: The influence of parent control structure, ownership change, and volatile environment. Government procurement regulations, such as the Federal Acquisition Regulation (FAR) in the United States, may specify how joint ventures are to be approached as suppliers or confirm that a joint venture or other form of contractor partnering is seen as a "desirable" arrangement for supplying to government. The FAR states that The Government will recognize

1908-405: The integrity and validity of contractor team arrangements [including joint ventures], provided the arrangements are identified and company relationships are fully disclosed in an offer or, for arrangements entered into after submission of an offer, before the arrangement becomes effective. The Government will not normally require or encourage the dissolution of contractor team arrangements. Under

1961-564: The largest vehicle manufacturer in the Middle East , Central Asia and North Africa . In Iran, it is the largest vehicle manufacturing company, having an average share of 65 percent of domestic vehicle production. Iran Khodro produced 556,442 passenger cars and commercial vehicles in 2023 and has planned to produce 600,000 units in 2024. Iran Khodro has qualified for ISO 9001 from RW-TUV , Germany , as well as many other health, safety, and environment certificates including ISO 14001 and OHSAS 18001 . Iran's automobile production crossed

2014-705: The latest technologies. Under Chinese law, foreign enterprises are divided into several basic categories. Of these, five will be described or mentioned here: three relate to industry and services and two as vehicles for foreign investment. Those five categories of Chinese foreign enterprises are: the Sino-Foreign Equity Joint Ventures (EJVs), Sino-Foreign Co-operative Joint Ventures (CJVs), Wholly Foreign-Owned Enterprises (WFOE), although they do not strictly belong to Joint Ventures, plus foreign investment companies limited by shares (FICLBS), and Investment Companies through Foreign Investors (ICFI). Each category

2067-477: The law, it becomes possible to merge with a Chinese company for a quick start. A foreign investor does not need to set up a new corporation in China. Instead, the investor uses the Chinese partner's business license, under a contractual arrangement. However, under the CJV, the land stays in the possession of the Chinese partner. There is another advantage: the percentage of the CJV owned by each partner can change throughout

2120-402: The majority of funds and technology and the Chinese party provides land, buildings, equipment, etc. However, there are no minimum limits on the foreign partner which allows him to be a minority shareholder. The other format of the CJV is similar to a partnership where the parties jointly incur unlimited liability for the debts of the enterprise with no separate legal person being created. In both

2173-505: The needed spare parts were globally outsourced and ISACO aims to reduce this amount to 23 percent. Iraq, Belarus, Russia, Ukraine, Venezuela, Senegal, Algeria and Tunisia are the main target markets for ISACO. IPCO was established in 1998. The main activity of this engineering services company is in the field of power train including design and development, testing, adjusting, product engineering, and quality assurance processes in mass production and design production. This subsidiary of IKCO

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2226-471: The project. The feasibility study must cover the fundamental technical and commercial aspects of the project, before the parties can proceed to formalize the necessary legal documentation. The study should contain details referred to earlier under Feasibility Study (submissions by the Chinese partner). There is basic law of the PRC concerning enterprises with sole foreign investment controls, WFOEs. China's entry into

2279-570: The public in 2008 is EF7 which is currently powering Samand LX car in Iran. EF7 turbocharged engines were initially shown to the public in mid-2009 and will be installed on Soren ELX by last 2010. Other EF series engines named EF4 & EFD (Diesel) engines design are finished and they are being tested for mass production by Iran Khodro. In November 2009, Iran Khodro unveiled its new "national diesel engine " with fuel consumption of 5 liters per 100 kilometers in combined cycle. The engine has achieved emission standard of Euro 5, featuring

2332-441: The purpose of the identification of investment opportunities, analysis and evaluation of the stock market and creating income for shareholders. IRICO was established by Iran Khodro Investment Development Company in 2003 to manufacture railway rolling stock. IRICO produces metro wagon, rail bus, light rail vehicle and monorails. In March 2011, Tose-e-Tarabar Raili Iranian Co. acquired RICO from Iran Khodro. Iran Khodro Diesel Company

2385-421: The relations again. Renault Pars is in charge of the engineering, quality control, parts supply, logistics, managing sales policies as well as marketing and customer services for Renault products in Iran and IKCO is one of its main shareholders that produces Tondar for the domestic market. Renault Pars is a joint venture, 51 percent of which belongs to Renault of France. Forty-nine percent of Renault Pars' shares

2438-531: The rules applicable to public procurement in the European Union , public bodies may insist that suppliers intending to provide goods and services through a joint partnership accept joint liability for the execution of the contract. According to a 2003 report of the United Nations Conference on Trade and Development , China was the recipient of US$ 53.5 billion in direct foreign investment, making it

2491-440: The same proportion as the increase in registered capital. The JV contract accompanied by the articles of association for the EJV are the two most fundamental legal documents of the project. The Articles mirror many of the provisions of the JV contract. In case of conflict the JV document has precedence. These documents are prepared at the same time as the feasibility report. There are also the ancillary documents (termed "offsets" in

2544-435: The shareholders agreement as to the number of directors each founder can appoint to the board of directors; whether the board controls or the founders; the taking of decisions by simple majority (50%+1) of those present or a 51% or 75% majority with all directors present (their alternates/ proxy ); the deployment of funds of the firm; extent of debt; the proportion of profit that can be declared as dividends; etc. Also significant

2597-562: The shareholders, including debt, is equal to the number of shares purchased by each partner. Iran Khodro The word khodro ( خودرو ) means "automobile" in Persian , hence Iran Khodro means "Iran Automobile". Iran Khodro was founded on August 29, 1962. Iran Khodro Industrial Group (IKCO) is a public joint stock company with the objective of creation and management of factories to manufacture various types of vehicles and parts as well as selling and exporting them. The company has become

2650-423: The supplying chain of automotive parts in IKCO. IKCO Spare Parts and After-Sale Services Co. (ISACO) was founded in 1977. ISACO is providing after-sale services and supplying spare parts for IKCO products throughout the country. ISACO Kish, is one of the subordinate companies of ISACO which is assigned with the task of supplying after-sale services to IKCO vehicles in the international markets. In 2011, 37 percent of

2703-418: The total production of its Samand model. IKCO intends to export 9% of its output in 2011, amounting to 75,000 vehicles, before reaching 16% in exports by 2014. The following table shows the cars that have been specially designed and built by IKCO: Iran Khodro started to design a new range of engines for its products in 2007 in a joint with F.E.V of Germany . The first EF series engine officially shown to

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2756-426: The world's largest recipient of direct foreign investment for the first time, to exceed the US. Also, it approved the establishment of nearly 500,000 foreign-investment enterprises. The US had 45,000 projects by 2004 with an in-place investment of over 48 billion. Until recently, no guidelines existed on how foreign investment was to be handled due to the restrictive nature of China toward foreign investors. Following

2809-514: Was found with name "Ghateh Sazan-e Mojarab" in 1997 with the aim of creating cutting-edge has been changed to TAM Co. in 1998. The company has designed and completed projects of the SAMAND production line in Syria, Venezuela and Senegal without help of foreign companies. In 2012, TAM won Iran's "Most Admired Knowledge Enterprise (MAKE)" award. Samand Investment Co. was established as a Corporation in 2004 with

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