Peugeot-Citroën to Halt Collaboration with Iran

Peugeot-Citroën, the French automotive giant, has announced that it will terminate its joint collaborations with Iran within the next two months. In a statement published on its official website on Monday, June 3, the company mentioned that after the nuclear agreement, Peugeot-Citroën signed contracts with Iran Khodro on June 21, 2016, and with Saipa on January 16 of the same year. The report adds that all contracts for establishing joint vehicle production companies were based on UN resolutions and in compliance with the laws of the US, France, and the European Union, aiming to provide new models of Peugeot-Citroën vehicles with high safety and quality standards for Iranian customers; "however, following the US withdrawal from the JCPOA on May 8, the company began to halt its joint activities with Iran and intends to stop collaborations with Iran by August 6." Nevertheless, this automotive giant stated that it is negotiating with the US for an exemption from sanctions with the help of the French government to return to the Iranian market. The report further indicates that the Iranian market constitutes only a one percent share of the company's total revenue. In this context, Bloomberg reported on Peugeot-Citroën's exit from Iran, stating that last year the company sold a total of 3,630,000 vehicles, of which 440,000 were sent to the Iranian market. Most of these vehicles were of the Peugeot 405 and the supermini 206 types. The report also mentions that Renault has remained silent about the future of its activities in Iran. However, German automaker Volkswagen stated that it would comply with international laws. Reuters also reported that the value of Peugeot-Citroën's contracts with Iran was approximately 700 million euros, and Renault had also signed a contract to establish a production line for 350,000 vehicles annually with Iran. Both French companies had also halted their activities in Iran in 2012 at the onset of heavy US and European sanctions against Tehran. The announcement of Peugeot-Citroën's exit comes as Maziar Beigloo, the secretary of the Iranian Parts Manufacturers Association, stated on June 3 that "French automakers have announced to automakers and parts manufacturers that there will be no change in their policies in Iran and they still intend to work with Iranian automakers."