The End of Renault’s Half Done Projects Tale in Iran

Khodrocar – According to the Trump’s speech about exiting the JCPOA new sanctions will start against Iran in two phase, first phase launch in 4th August and next phase will start in 4th November.

The first phase will focus on Iran’s auto industry to cut out all Iran’s relation with major automakers that their leaders are Renault and Peugeot. Therefore, in the middle of June Peugeot officially announced to leave Iran but Renault said they will stay no matter what happens. After the news of Peugeot, Renault announced that Iran’s market is potential and they are not considering to leave Iran but they changed their mind in less than a month.

The Chief Operating Officer of Renault said that according to the pressure of America they may stop their activity in Iran. Thierry Bollore added that Renault is going to seek new opportunities in Africa to cover Iran’s losses.

"Right now, staying or leaving of foreign automakers is a concern for domestic automakers but in fact politicians should concern about these kinds of decisions because, by ending an activity dozens of people would became unemployment and the country may suffer losses.” Saied Madani, chief advisor of Saipa told khodrocar reporter. "Renault and IDRO contract wasn’t meeting a success and their project to build an independent branch failed.”

"Other thing , no decision has been made for continuing the production of previous models and we have to wait for this part. Renault said to leave Iran but we hope they stay.” Madani added.

"Previous experiences show that in this situation,foreign companies will reduce their activity to find out the international decision then consider to stay or leave. Renault stayed in Iran last time. The auto industry is dependent to other countries and it is a traditional in the whole world.” He said.

"But the condition of companies such as Renault is different in Iran. After the leaving of these companies, Iranian platform cars will suffer mach less than the cars with foreign badge. Finally, harmful part of sanctions will hurt foreign cars with parent company’s badge.” He said.

Now after the Peugeot, its time for Renault to leave Iran but Renault just announced its decision one month before sanctions which is not logical. Right now, there are hopes to see them stay in Iran because they are known as one of the reliable companies in Iran.

Khodrocar Reporter: Negar Mir Karimi

Khodrocar Translator: Amin Zamani