Nowadays, there are mesmerizes about the possibilities of United States’ new sanctions against Iran and this could affect the commercial activities of Iran’s French partners such as Total, Renault and Peugeot.
Khodrocar – If United States decide to implement new sanctions against Iran, several French industrial groups operating in Iran, will be affected.
Renault feels the danger
Renault’s headquarter said regarding the issue: It is very difficult to predict what will happen. If new sanctions are imposed, we must wait to see European countries’ reactions, decisions and also, the effects of sanctions on the relations between the two countries.
Renault didn’t leave Iran, even after the former sanctions.
In the 1st of August 2017, Renault announced that this company is very optimistic about new joint venture with two major automakers in Iran, Iran Khodro and Saipa and also this contract was one of Renault CEO’s strategic plans. According to this joint venture, by 2022, Renault’s annual sales in Iran will increase to 250,000 vehicles. but United States' new sanctions will definitely affect this.
Carlos Ghosn, Renault’s CEO said regarding the issue: The sanctions will not affect our strategic and long term plans in Iran and this situation will end soon. If cooperation with Iran is impossible, the two countries will work on a plan to suspend the activity in this country but this doesn’t mean the end of our partnership.
The story is different for Peugeot. After more than 20 years of partnership in Iran, with its American shareholder’s request (General Motors), Peugeot decided to leave Iran. But that was not what the French automakers wanted because Iran Khodro was the major partner of this company and Iran was one of the largest car markets for Peugeot. But again after the sanctions was lifted, Peugeot came back and in October 2016, the French industrial group signed two cooperation and production contracts with Iran Khodro and Saipa worth 700 billion euros. According to this contract the production capacity will be increased to 350,000 units per year.
Peugeot also earned funding from one of the European banks, predicting that it could invest up to 5 billion euros in Iran. Within a few months Peugeot produced the 2008 model in Iran.
Carlos Tavares, Chairman of the Managing Board of PSA, didn’t reject this theory that Iran is a dangerous county for investment during his last year’s visit and this show that Peugeot did not have much hope for investing in Iran. This French automaker restarted its activity in United States and sanctions will not make this company suffer that much.
Khodrocar Translator: Maziyar Jafarieh
Source: LesEchos
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