Even as the EU sanctions continue to add up, Iran’s national car maker is going in the opposite direction. Iran Khodro is set to launch a new engine family that will comply with the latest Euro-IV emissions regulations for use in their Peugeot-based models.
The new motors, dubbed the XUM series, can run on gasoline or natural gas, and will be installed in the IKCO Samand and the Iranian-built Peugeot 405. The XUM engine is scheduled to go into mass production in June, but Peugeot parent company PSA has recently suspended parts shipments to IKCO, impeding production of vehicles like the 405. While Iranian business only accounts for 1.5 percent of PSA’s annual revenue, IKCO is highly dependent on Peugeot. The Samand is only sold in Belarus, Russia and Switzerland, which are non-EU countries. IKCO may be taking its environmental lead from the EU, but their wares aren’t going to be sold there anytime soon – or anywhere, if the sanctions are successful.