The Renault group does not intend to leave Iran. Asked about the subject at the general shareholders’ meeting held in Paris on June 15, the CEO of the French manufacturer Carlos Ghosn said that the company “would stay” in the country, “even with a reduced car”. “We have always had a long relationship with Iran, this is not the first time that the country has been sanctioned, but we have never abandoned Iran,” said Carlos Ghosn, echoing the threats made by the United States with regard to companies having a connection with the Islamic Republic.
“We will not give up even if we have to cut the sails very strongly, because we are convinced that this market will open up again and staying on the spot will certainly give us an advantage,” said Ghosn. Since Donald Trump’s announcement on May 8 to withdraw from the agreement on the Iranian nuclear program, US sanctions are weighing on all companies using the dollar or having direct activities in the United States.
The president and CEO of Renault, however, said that a “team in direct contact with the US administration” had been set up to determine the possible room for maneuver in Iran. Last year, the French group sold 162,000 units in the country, up 49% compared to 2016. This increase allowed the company to reach 10% market share in Iran.
Nissan well established in the United States
An announcement that contrasts with the decision taken by competitor PSA a few weeks ago. On June 4, the builder at Lion said it had begun suspending the activities of its joint ventures in Iran to comply with US law, for implementation on August 6. And this, while Iran is for PSA by far the largest foreign country in terms of volumes, with 444,600 vehicles sold in 2017.
One of the reasons for PSA’s withdrawal is related to its involvement in the United States via its equipment subsidiary Faurecia. Like its rival, the Renault group is not directly established in the United States. On the other hand, it is indirectly at the level of the Alliance since its partner Nissan sold in 2017 nearly 1,593 million units in the country.