2 Major Automakers Still In Iran As U.S. Sanctions Inch Closer

Khodrocar - With high profile companies like Boeing BA +0.09%, Total and General Electric GE +1.09% announcing that they plan to end all business dealings with Iran by the time U.S. sanctions return, the focus is now turning to which companies that indent, at least for now, to continue doing business in Iran.

Volkswagen – The German car manufacturer only recently entered the Iranian market. It has not announced whether it will exit Iran or remain in light of the secondary sanctions.

Airbus – Airbus, unlike Boeing, had already started delivering planes to Iran before the Trump administration announced the reinstatement of U.S. sanctions. Airbus has not made any statements about its future in Iran, although U.S. Treasury Secretary Steve Mnuchin already mentioned that Airbus’s export license for Iran will be revoked. Approximately 10% of the parts used in the Airbus planes are made in America.

Renault – This French carmaker signed multimillion dollar deals with Iran in 2017 and plans to build a new plant in Iran that would bring its total production in that country to 350,000 vehicles per year. Back in October, the Renault CEO said the company would not exit Iran if the U.S. reinstated sanctions. The company has not made any recent announcements about whether it intends any changes.

Source: Forbes.com