Iran Threatens To Bankrupt Peugeot

Cammy Corrigan
by Cammy Corrigan

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…?

Cammy Corrigan
Cammy Corrigan

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  • John Horner John Horner on Oct 12, 2010

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

  • Stingray Stingray on Oct 12, 2010

    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.

  • Dartdude The bottom line is that in the new America coming the elites don't want you and me to own cars. They are going to make building cars so expensive that the will only be for the very rich and connected. You will eat bugs and ride the bus and live in a 500sq-ft. apartment and like it. HUD wants to quit giving federal for any development for single family homes and don't be surprised that FHA aren't going to give loans for single family homes in the very near future.
  • FreedMike This is before Cadillac styling went full scale nutty...and not particularly attractive, in my opinion.
  • JTiberius1701 Middle of April here in NE Ohio. And that can still be shaky. Also on my Fiesta ST, I use Michelin Pilot Sport A/S tires for the winter and Bridgestone Potenza for my summer tires. No issues at all.
  • TCowner We've had a 64.5 Mustang in the family for the past 40 years. It is all original, Rangoon Red coupe with 289 (one of the first instead of the 260), Rally Pac, 4-speed, factory air, every option. Always gets smiles and thumbs ups.
  • ToolGuy This might be a good option for my spouse when it becomes available -- thought about reserving one but the $500 deposit is a little too serious. Oh sorry, that was the Volvo EX30, not the Mustang. Is Volvo part of Ford? Is the Mustang an EV? I'm so confused.
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