The Effects of Inner Struggling on After JCPOA Contracts

Khodrocar - "Bon ro” production site was belong to Saipa but IDRO took it on its debt without Saipa notice. This site was the share of IDRO in the Joint venture contract that signed between them and Renault. Now, after months, the site does not belong to Renault group and the biggest foreign investment in the auto industry is the victim of the internal struggling.

The decision of bringing "Bon ro” production site to the contract by IDRO was criticized since the beginning. In defense, it said that IDRO is a shareholder of Saipa and the site has been taken as the debt. But IDRO did not follow the law and Saipa didn’t give the site to Renault. This issue brought back the two sides to the table to review the contract while it was signed.

It means that Iranian side did not keep its promises in the contract. Now, it is a question that what is the effects of these kinds of issues on the next foreign investments in Iran’s Auto industry?

"The first signal of this happening to foreign investors is that two major automakers in Iran have lots of powers and those who don’t cooperate with them will have bad times in Iran’s market. However, Renault has market in Iran since 12 years ago, but it doesn’t have the power to face Iranian Automakers.” Said Farbod Zavehm an expert in the auto industry, to Khodrocar reporter.

What will be the future of Renault in Iran?

"Renault wants to keep its independence and they showed it till now. This company wants to have relation with Iranian automakers and have the market independently.” Zaveh continued.

"Future of Renault is not predictable. Renault wants to control the production rate because the company didn’t control the sale till now and they didn’t be able to raise the production rate. For example, if Renault could sale Sandero in Iran, then they could raise the production rate and brought the new body to Iran.” He said.

As it seems, Iran’s business atmosphere has past the one way sanctions, but have to struggle with more unprofessional obstacles. These obstacles can have effects on the future foreign investments.

Khodrocar Journalist: Asal Dadashloo

Khodrocar Translator: Amin Zamani