What Will Happen to the Contract of Peugeot and Part Makers?

Khodrocar – It’s been a month since stay or leaving of European manufacturers became a hot topic in the country and everyone saying their own opinion about it. Some says European won’t leave Iran and they will find a way to continue their activity but others believe that European manufacturers will leave Iran again and Iran would be alone against all sanctions. They forgotten part is that what will happen to the contracts of part makers and investments?

3 days after PSA said they won’t continue their activity in Iran. FIEV postponed its trip to Tehran to unknown date. However FIEV wrote a letter and mentioned their long term cooperation with Iran and emphasized that they continue their cooperation with us but postponing the trip is increasing the worriedness about the future of Iranian auto part makers.

"Peugeot is has not leaved yet and we shouldn’t talk about their exit right now. They didn’t leave Iran and looking for a way to continue their activity and these issues are temporary because Peugeot had investment in Iran. Lots of delegations had come to Iran after the revolution but a few of them invest in Iran and Peugeot is one of them. So we shouldn’t increase the pressure on them.” Mohammad Reza Najafi, president of part manufacturers association told Khodrocar reporter.

"If they act opposite the contract then have to pay compensation but now the condition is forcing them to quit the contract and we have to help them to stay against the Trump and USA to make them stay in Iran.” he added.

"Peugeot doesn’t have any direct relation with America’s auto industry. Their main problem is financial issues and the credit they want to take from Americans banks. FIEV postponed its trip to Iran but the media reflect the news as like as they are canceling the trip to Iran. After a while the president of FIEV strongly said we won’t cut our 20 to 25 years relation with Iran. Now, we will have a meeting in Paris.” Arash Mohebi Nejad, secretary of part manufacturer association told Khodrocar reporter.

"The PSA didn’t have a contract with Iranian part makers but two joint venture companies have signed contracts with them. They promised to supply the parts but about the PSA contract they can’t say anything. They are really seeking a way to ditch sanctions and continue their cooperation with Iran.” he added.  

"On the other hand the society of part makers is warning the PSA that if they leave Iran, they won’t have a place in Iran in the future because all the society will refuse to work with them. But we hope to see them continue their activity in Iran and we think they are looking for a way to be active in our country.” Mohebi Nejad said.

"Part makers expect that if European manufacturers decide to leave Iran, IKAP and Saipa-Citroen pay the compensation of their part makers completely because some of these part makers have invest a lot for preparing the infrastructure of producing Peugeot-Citroen parts and these investments won’t recover by anybody except those two joint venture companies.” He added.

As the contracts between automakers and Iranian part makers will finish in the middle of August and by returning of USA sanctions, supply the first materials will be hard for local part manufacturers then we should be hopeful that contracts of part makers and automakers be strong and they could have their compensation if they wanted to leave Iran.

Khodrocar Reporter: Sepideh Ghazi Nejad

Khodrocar Translator: Amin Zamani