This time in addition to the banking sanctions, automakers will taste it. Automotive industry was first to benefit from sanctions and attracted many foreign partners but now everything will change.
After separating from Citroen, as an individual brand, DS choose Iran as one of its first target markets. This company expanded its dealerships in Iran but after the ban of vehicle imports, this company faced a huge obstacle.
Iranian auto part makers’ entrance to supply Peugeot and Renault parts could speed up the localization of products but as the Peugeot is exiting Iran what will happen to the contracts and joint ventures and how they will pay the compensation of part makers?
Donald Trumps’ pressures on industry of Iran is getting stronger and it affected the automotive industry. The European companies are doubtful about keeping their relation with Iran.
Just 56 kilometers southwest of Mulhouse lies Sochaux (“So-show”), where Peugeot has been building vehicles—upwards of 20 million of them so far—for the past 106 years.
It was March 2017 when IKCO and Peugeot agreed on producing joint-venture cars, but only one car has been launched since then. Meanwhile, it’s been whispered that IKCO and Peugeot cooperation is going to end soon.