Ambiguity Surrounds Renault's Continued Operations in Iran

Contrary to the Peugeot-Citroen group, whose contracts were implemented in Iran after the JCPOA, Renault has still not been able to start its new activities in Iran. It is likely that due to the large market of its partner Nissan in the United States, and following the U.S. withdrawal from the JCPOA, Renault may change its operations in Iran. In 2004, Renault made the largest foreign investment in Iran's automotive industry by establishing Renault Pars, in which it held 51% of the shares, intending to produce products from the X90 platform in Iran. However, with the change of government in Iran and the rise of Mahmoud Ahmadinejad, the Ministry of Industries opposed the contract, citing its colonial nature, which delayed Renault's contract execution. Ultimately, production never reached the planned figure of 300,000 units per year in Iran, and many products from the X90 platform were not produced. With the onset of extensive sanctions in 2011, Renault remained in Iran, unlike Peugeot-Citroen, which left due to its investment in Iran, estimated at over 500 million euros. While the company announced in Europe that it had exited Iran, it kept its office in Iran open and continued its operations. After the nuclear agreement, everyone expected Renault to be the first automaker to sign a contract with the Iranian side. However, due to issues with collaboration with two state-owned automakers, Iran Khodro and Saipa, Renault aimed for independent presence in Iran this time, which prolonged negotiations with the Organization for Industrial Development and Renovation of Iran. About a year after Peugeot signed a contract with Iran Khodro, Renault finally signed a memorandum of cooperation with the Iranian side. Less than a year later, while the production of new Peugeot-Citroen products was being launched in Iran, Renault reached a new contract with the Iranian side, signed in July 2017. Mansour Moazami, head of the Organization for Industrial Development and Renovation of Iran (IDRO), stated about this contract: "The first phase of the contract with Renault, valued at 660 million euros, is for the production of 150,000 vehicles, with the first production entering the market by late 2018." Overall, 60% of the shares belong to Renault and 40% to Iran, with plans to produce two products, the "New Duster" and "New Symbol," in Iran during the first phase. However, after several months, a problem halted the execution of the contract. The Organization for Industrial Development and Renovation of Iran was supposed to give Renault the Benro automotive factory in exchange for a debt from Saipa instead of making an investment in this project. However, Saipa refused to transfer this factory to the organization because it did not want a new competitor like Renault to enter the Iranian market directly and also wanted to allocate the Benro factory to the Chinese company Changan. This factor prevented Renault's investment in Iran from starting, and with the U.S. withdrawal from the JCPOA, there is now even a possibility that Renault may completely abandon its new investment. Currently, Renault is collaborating with two Japanese automakers. Renault, along with Nissan and Mitsubishi, has formed a new alliance. Although Renault does not have a direct presence in the U.S. market, Nissan and Mitsubishi have a significant presence, and many Renault products use Nissan engines and transmissions, while many Nissan and Mitsubishi vehicles utilize Renault platforms or components.