Automotive News : Fiat Ready To Launch Production of Its Siena in Iran

According to Iranian media reports, Fiat and its Iranian partner, Bonyan Auto, have ironed out various problems that have delayed their plans for local assembly of the Fiat Siena sedan. The first are now scheduled to roll off the Iranian production line in October. Under the terms of an agreement signed in 2005 between Fiat and the Pars Industries Development Fund, the Iranian partner was supposed to build a new factory at a cost of about $275 million, with a capacity of 100,000 cars, and manufacture various Fiat models. The new venture was named Bonyan Auto, but nothing had been heard about it since then — until now.

The companies say Bonyan will start by producing taxi versions of the Siena and ambulance versions of the Doblo van. The Multipla minivan, Strada pickup truck and other Fiat models are planned for later. Bonyan will offer CNG fuel options for all models, since fuel is ironically a problem for drivers in Iran.

If the joint venture suceeds, it is highly conceivable to view the Siena as a competitor to Iran's most popular car, the Kia Pride, and another newcomer, the Renault Logan.