VW to Phase Out Operations in Iran

Volkswagen AG is the latest carmaker to bow to U.S. trade sanctions and halt almost all operations in Iran, Bloomberg News reports.

The company joins Daimler, which last month announced its exit from Iran. Renault and PSA have said they will do the same, even though neither does significant business in the U.S. market.

in May, President Donald Trump pulled the U.S. out of the 3-year-old multinational pact that ended previous sanctions in return for Tehran’s promise to reduce its nuclear development program. Trump then introduced new sanctions against Iran, which took effect last month. He also threatened to do the same against companies that continue to do business with the country.

Richard Grenell, the U.S. ambassador to Germany, led the negotiations with VW. He says VW will be permitted to continue limited humanitarian-related business in Iran.

VW last exited the Iranian market 17 years ago. It resumed activity there last summer by signing a deal with Mammut Khodro to import Passat sedans and Tiguan small crossover vehicles.