By on October 11, 2010

With sanctions piling up against Iran because of their nuclear ambitions, Iran is getting more and more isolated on the world stage. They need to assert their authority and let the world know they won’t be pushed around. And they may have found a way of doing it according to the Iranian Student’s News Agency (ISNA).

Autoevolution reports that the ISNA has put forward a story that’s quite bizarre. They claim that Peugeot’s Iranian subsidiary has received a few bankruptcy related threats from the Iranian government. The Iranians are threatening to stop the import of spare parts for cars. If that were to happen Peugeot Iran would have to declare bankruptcy, the Iranian government claimed. “If we decide, we can bring Peugeot company to bankruptcy. If we stop the importation of spare parts from Peugeot tomorrow, the company’s sales will drop by 2.5 billion dollars,” said Mohammad Reza Rahimi, Iran’s Vice President, “If we just raise our eyebrows, a part of the French auto industry will collapse”. Peugeot produces the 405 and 206 models in a joint venture with Iran Khodro.

Iran doesn’t report production data to OICA, but production by Iran Khodro is estimated at 600,000 units. Iran Khodro also has a joint venture with Renault and Mercedes. Curiously, these two companies remained unmentioned.  If the Iran would stop importing parts, it would hurt Peugeot, but won’t bring it down. Iran also imports large amounts of parts from China. Even with China, there are problems. The world trades in U.S. dollars, and Iran increasingly has problems getting dollars and getting them out of the country – or so they say. Having no parts also has a small, but inconvenient side-effect: The car won’t drive.  A small part of the French auto industry may collapse, along with a large part of the Iranian traffic.

This may needs a little more thought, Mr Rahimi. Until then, I’ll file this story until “WTF”, ok…?

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10 Comments on “Iran Threatens To Bankrupt Peugeot...”


  • avatar
    Astigmatism

    I’m usually frustrated by multinationals that do extensive business with autocratic regimes, lending them legitimacy and giving them a source of cash in exchange for what’s often such friendly pricing that the company gets an unfair advantage on the market.  So as far as I’m concerned, every time it backfires, an angel gets its wings.
    Next up: what happens when all of the Western automakers are “bought” out of their Chinese JVs?

  • avatar
    gslippy

    Better to bankrupt Peugeot than to nuke another country.  Doing both would be bad form.

  • avatar
    L'avventura

    Talk like this discourages FDI into Iran and hurts their economy.
    No company wants to invest in a country that has a high-risk of the government intruding and hurting your business.  Risk is a cost, and a big one.  Keeping foreign money away from Iran is just playing directly into their adversaries’ hands.
     
    What’s the saying?  ‘Throw a rock only to have it land on your own feet’.

  • avatar
    Facebook User

    way to kill all future investment in you country chaps!

  • avatar
    Stingray

    Mrs Corrigan… the Samand you posted has IIRC 80% of localization, and is based on a Peugeot platform. The 405 and 206 produced over there are similar. So the factories will continue producing the things.
     
    Then we have to take into account that all 3, the 206 SD, Peugeot ROA/RD, Samand and most everything IKCO produces have a license agreement/relation with Peugeot. Also that the french IIRC are using some Persian parts in their cars.
     
    This maneuver would harm IKCO badly. The 206 (they have the plus now as 207i), 405 and Samand are their bread and butter models. The Iranians like the 206 a lot, and I don’t need to say that Samand is Iran’s national car.
     
    Follow the route of the money and you might find what’s behind this threat. ;)

  • avatar
    GS650G

    Who cares what the Iranians do to Peugeot, or vice versa.
    Yawn.

  • avatar
    joe_thousandaire

    Has there ever been a country in the history of the world that has a bigger inferiority complex than Iran? Its like the entire government suffers from little-big-man syndrome. Their big threat is that they can bankrupt a second-tier car maker with a wave of their hand. We’re really impressed.

  • avatar
    John Horner

    Iran seems to like putting out “we will destroy you!” threats of all sorts.
     

  • avatar
    Stingray

    I checked ISNA site last night and found nothing.
     
    Then I remembered that this hurts IKCo BADLY, they export the 405, 206, Pars and others to Middle East countries, Egypt, Russia… If the government “kills” Peugeot Iran, guess what will happen with those exports and the very much needed currency they bring.
     
    Follow the route of the money or currency.


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