Weeks prior to the historic deal reached between Iran and the “P5+1” group of nations, TTAC reported on some of the machinations going on behind the scenes regarded the United States, France and their respective auto industries ability to do business in Iran. We put forth the theory that any deal with Iran would be a boon to auto manufacturers, who would have access to a market expected to be worth 1.5 million units in a few short years, with a very young population and a standard of living that is substantially better than many highly touted emerging markets.
At the time of publication, we encountered significant dismissal, if not disagreement. But as it turned out, negotiations had been ongoing since the start of 2013, and the preliminary deal appears to make the auto industry a big winner.
While Russia, Indonesia, Brazil and even Burma get the majority of the car industry’s attention when it comes to emerging markets, Iraq is also considered to be an up-and-coming place to sell cars. Iraqis have a funny habit of enjoying cars that are linked to foreign armies; American cars are fairly popular in the country, and so are Iranian machines too.
Further on yesterday’s story on PSA’s, and by extension GM’s, alleged continuous supply of embargoed car parts to Iran, Bloomberg reports that Iran’s imports of automobile parts decreased by 47.8 percent to $254 million in the two months since March 20. (Read More…)
GM-partner PSA has repeatedly stated that shipments of parts to Iran’s carmaker IKCO (a.k.a. Iran Khodro) had stopped in February, and would not resume until September, if at all. The parts are for the 206 and 405 models, and PSA said it stopped shipping them in response to sanctions on Iran. IKCO says it’s not true at all, ships are unloading parts and the lines are running. (Read More…)
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.
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.