Iran Khodro Company (IKCO) has taken a step closer to total self-sufficiency in its vehicle production after acquiring the technology to produce its own powertrains. The company has acquired cylinder block and cylinder head machining equipment, which will enable it to produce powertrains for 680,000 vehicles by the end of the current Iranian calendar year (March 21 2010). In the next full year, IKCO aims to supply 800,000 powertrains. The new equipment will also enable IKCO to diversify its powertrains. According to IKCO's Powertrains deputy CEO, Ali Sheikhzadeh, the carmaker is now in a position to move into supplying diesel engines for passenger cars, which will enter mass production in 2011. He added that the new equipment will 'put an end to Iran's dependency on foreign companies'.
IKCO has a partnership with French company PSA Peugeot Citroën , through which it assembles vehicles under licence. It also based its Saman 'national car' on the Peugeot 405 platform. However, as the threat of further international sanctions against Iran loom, the carmaker is seeking to reduce its dependence on other companies, particularly from overseas, for vital parts and components.