Iran Threatens To Bankrupt Peugeot

Cammy Corrigan
by Cammy Corrigan
iran threatens to bankrupt peugeot

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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  • 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.

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  • Ollicat I have a Spyder. The belt will last for many years or 60,000-80,000 miles. Not really a worry.
  • Redapple2 Cadillac and racing. Boy those 2 go together dont they? What a joke. Up there with opening a coffee shop in NYC. EvilGM be clowning. Again.
  • Jbltg Rear bench seat does not match the front buckets. What's up?
  • Theflyersfan The two Louisville truck plants are still operating, but not sure for how much longer. I have a couple of friends who work at a manufacturing company in town that makes cooling systems for the trucks built here. And they are on pins and needles wondering if or when they get the call to not go back to work because there are no trucks being made. That's what drives me up the wall with these strikes. The auto workers still get a minimum amount of pay even while striking, but the massive support staff that builds components, staffs temp workers, runs the logistics, etc, ends up with nothing except the bare hope that the state's crippled unemployment system can help them keep afloat. In a city where shipping (UPS central hub and they almost went on strike on August 1) and heavy manufacturing (GE Appliance Park and the Ford plants) keeps tens of thousands of people employed, plus the support companies, any prolonged shutdown is a total disaster for the city as well. UAW members - you're not getting a 38% raise right away. That just doesn't happen. Start a little lower and end this. And then you can fight the good fight against the corner office staff who make millions for being in meetings all day.