Iran and Russia to Develop $800 million auto business

We reported the growing ties between GAZ – owner of LDV and rising star in the emerging market CV business – and Iranian OEM Iran Khodro Diesel a while back. GAZ, however, is not in the market for an IPO, unlike rival Russian OEM Kamaz.Here’s confirmation of the deal, with an aside stating that Russo-Iranian automotive trade will grow to $800 million over the next two years. It’ll be interesting to see what develops here, not least in the light of the mooted sanctions against the Iranian government.

CitySprint to trial biodiesel vans

CitySprint is to embark on a biodiesel trial with the Environment Agency.

The same-day courier network, which has recently been awarded a two-year contract with the Environment Agency, will run a fleet of about 20 non-modified Citroën vans on B22 biodiesel - a 22% blend. The fuel, which is being supplied by the agency, will contain recycled vegetable oil sourced from the food industry.

The aim of the trial, which begins in April, is to explore the environmental and economic viability of the fuel.

The Environment Agency wants to determine what the carbon savings are, and discover whether there are increased costs - such as extra servicing. It plans to produce a follow-up report that will act as a tool for fleet managers to help decide whether or not to run their fleets on biodiesel.

CitySprint's fleet director Am Pall says that he doesn't expect the switch to have any financial benefits - only environmental.