Did GM Coerce PSA to Suspend Iran Business?

General Motors Co. may have pressured PSA Peugeot Citroen to stop delivering vehicle kits to Tehran-based partner Iran Khodro Co., France's Les Echos reports, without citing its sources.

PSA and GM formed an alliance in late February, and the American company bought a 7% stake in PSA last month. The U.S. government, which owns 26.5% of GM, has imposed trade sanctions on Iran because of the country's nuclear policies.

PSA says it ceased deliveries to Iran because western banks are no longer doing business with the country, according to the Paris-based business daily. It says the French company will review the suspension monthly. Les Echos says the halt is likely to become permanent. Les Echos says the Iran sales only account for about 2% of the French company's business.