Italian automaker Fiat is returning to Iran 30 years after the Islamic revolution, the Iranian press reported on Monday.
According to the English-language Iran News daily, Fiat will build an assembly plant in the autumn to produce its Siena model.
Iran News cited as its source Sadeq Bairami, the operating chief of Fiat's partner in the Iranian project, Pars Industrial Development Foundation (PIDIF).
Based on an accord signed in January 2005, the project has a budget of some 200 million euros, which will be picked up by PIDIF.
The assembly plant will be set up in Saveh, about 130km southeast of Tehran, and will use parts produced in Turkey.
Initially the plant will produce 50,000 vehicles a year.
In the future a total of 250,000 vehicles will be produced a year including Fiat models Palio, Palio Weekend (stationwagon) and the Strada pickup.
There are also plans to produce the Idea medium-sized compact in Iran.
