Reverse all. The prospect of US sanctions, following Donald Trump’s withdrawal from the Iranian nuclear deal, has defeated PSA’s bright ambitions in the country of the mullahs. The group announced Monday initiated the process of suspending the activities of its joint ventures in the country. If companies have until August 6 to comply with US law, PSA has preferred to take the lead, given the time required to shut down the production units.
Unlikely derogation
“In parallel we ask a derogation to the US authorities, with the support of the French government,” says one at the manufacturer. In fact, as recently estimated CEO from Total, Patrick Pouyanné, the probability of obtaining such a waiver seems extremely low.
PSA had yet bet on Iran Since the end of the US sanctions in 2016. After being forced to pack in 2012 by General Motors, one of its shareholders at the time, the group had gone out of their way to return. As early as 2016, it had established 50/50 joint ventures with local players, Iran Khodro for Peugeot and Saipa for Citroën, in order to ramp up on the spot, with a total investment in factories and distribution then estimated at 1 billion euros. euros over five years. With ambitious objectives: 200,000 units for Peugeot, and 150,000 for Citroën in 2021.
No impact
Last year, PSA sold 444,600 vehicles in Iran, mainly Peugeot 206 and 405, almost all assembled by its partner Khodro, with locally-purchased parts: the group’s activities in Iran today account for less than 1% of its total production. turnover, says the builder, which allows him to say that this withdrawal will have no impact on its financial objectives.