Sanctions Cause PSA To Suspend Iran Khodro Shipments
Sanctions imposed on Iran by the EU and the United States have compelled PSA to delay parts shipments to Iran Khodro until September at the earliest.
Iran Khodro needs parts to build cars like the 206 and the ancient (by modern standards) 405. The delays are expected to cost both parties about $10 million per month.
Speaking to Just-Auto, a PSA spokesperson said
Some have suggested that General Motors, which has entered into an alliance with PSA, has put pressure on the French firm to suspend or end its ties with the Iran Khodro, but GM steadfastly denies this.
Just-Auto also spoke to an Iran Khodro spokesman who was optimistic that the company could find replacement parts, and expressed hope that negotiations regarding Iran’s controversial nuclear program would go well, leading to a resumption of business as usual. PSA’s Iranian business interests are worth $1.57 billion, or 1.5 percent of PSA’s total revenue.
More by Derek Kreindler
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I think we know what's going on here. Iran is amassing an arsenal of 206- and 405-shaped nuclear missiles.
Interesting article.
The sad truth is that if Peugeot walks away, the Iranians will simply get cheap car parts - supposedly to spec - from the Chinese. The other problem is that the Iranians don't have access to the international banking clearinghouse, so how can they pay for parts from anyone anyway? (This was surely done at the 'request' of our own USA gov't). Even the soviet union didn't get this treatment even while we were in the midst of the cold war. BTW, stopping cross-national banking is for all intents and purposes, a declaration of war. Can you imagine what the US might consider doing if for example the Chinese said "nobody can bank or trade with the Americans or we won't trade with you and we'll punish you."
Do they know that "PSA" stands for "prostate specific antigen", the prostate cancer test? Just asking...