Mexican Media Brands
U.S. Trade Sanctions May Prompt Renault to Exit Iran
Renault SA says it is likely to abandon the Iranian car market to comply with U.S. trade sanctions, even though the carmaker does no business in the U.S.
#economics
Share
Renault SA says it is likely to abandon the Iranian car market to comply with U.S. trade sanctions, even though the carmaker does no business in the U.S.
Thiery Bollore, the company’s chief operating officer, tells analysts that Renault is considering alternative opportunities, including expansion in Africa.
The company’s pending exit from Iran follows a similar decision by rival French carmaker PSA Group to shut down operations in the country by Aug. 6. The two companies had planned to add a combined 300,000 units of local production in Iran.
Renault, which had been assembling cars in Iran through partnerships, was pursuing plans to raise its output there by 75%. That initiative is still in the planning phase.
Renault has no presence in the U.S. market. But Bloomberg News says the company’s decision is being driven by Renault’s controlling interest in Nissan Motor Co., which operates factories in the U.S. and sold nearly 1.6 million vehicles there last year.
The Iranian market reopened in 2016 after previous trade sanctions were lifted. But the U.S. reinstated the restrictions in May after President Donald Trump pulled out of the nuclear agreement that had reopened Iran to global trade. Earlier this month the Trump administration rejected France’s request for an exemption from the new sanctions.
RELATED CONTENT
-
Report Forecasts Huge Economic Upside for Self-Driving EVs
Widespread adoption of autonomous electric vehicles could provide $800 billion in annual social and economic benefits in the U.S. by 2050, according to a new report.
-
VW Warns of Higher Costs to Develop EVs
CEO Herbert Diess says the €20 billion ($23 billion) Volkswagen AG has budgeted to electrify its entire vehicle lineup won’t be enough to meet that goal.
-
Inside Ford
On this edition of “Autoline After Hours” Joann Muller, Detroit bureau chief for Forbes, provides insights into what she’s learned about Ford, insights that are amplified on the show by our other panelists, Stephanie Brinley, principal analyst at IHS Markit who specializes in the auto industry, and Todd Lassa, Detroit Bureau Chief for Automobile.