By on April 2, 2012

Now we know why GM bought seven percent of PSA, a move for which most of the industry had no explanation. Forget overcapacity and scale effects. It was a carefully crafted plan to bring traffic in the Iran to a halt. Stuxnet is nothing compared to this.

Today, management of France’s PSA Peugeot Citroen will meet and decide whether it will continue to cut off Iran Khodro from the supply of parts needed to build the 206 and 405 vehicles, Just Auto says. PSA confirmed that it had already stopped shipping parts to the Iran for the month of March.

After the linkup between PSA and GM was announced, TTAC asked how a still partially U.S. government owned company can live with the fact that one of its partners is providing aid, comfort and car parts to the enemy.  A day later, an influential US anti-Iran lobby group called on GM and Peugeot to shut down Peugeot’s Iran business due to Tehran’s suspect nuclear program.

Mark Wallace, a former US ambassador to the United Nations and head of United Against Nuclear Iran group said:

“As a working partner and now official stake-owner of Peugeot, GM owes it to its investors and customers to compel Peugeot into ending its business in Iran. By doing business directly with the Iranian regime, Peugeot supports the regime’s ability to develop its illegal nuclear weapons program, support terrorist proxies and repress the Iranian people.”

Shortly thereafter, GM announced that PSA had suspended shipments of vehicle components to Iran Khodro and that its alliance with Peugeot “is fully compliant with U.S. law governing trade with Iran.” PSA will decide month-to-month whether to ship parts to Teheran, GM will make sure that it won’t.

With an annual capacity of a million cars, and with its 2011 production hovering close to capacity, Iran Khodro is by far the largest automaker in the Middle East. With a size comparable to Chery or Geely, Iran Khodro would rank at around place 20 on the worldwide scale of automakers, if it would rank. For some strange reason, Iran Khodro has been boycotted by or did boycott OICA for many years.

Iran Khodro (aka IKCO) has a long standing relationship with PSA Peugeot-Citroen, and France. Ayatollah Khomeini had lived in French exile and returned to the Iran on an Air France jet. France’s Total was one of Iran’s largest oil customers. The Peugeot 405 based Samand is known as “Iran’s national car.” IKCO also builds Peugeot badged iron like the 206, 405, 407 and a rear-drive Roa, a bizarre mixture of a 405 bodyshell with the rear-drive running gear of the Paykan, aka the Hillman Hunter. Iran Khodro is dependent on core components coming from France, an extended boycott could result in a breakown of its car production and in unrepaired cars after they had broken down. Iran had been busy establishing new suppliers in China, but even the Chinese complained for quite a while that payments from the Iran had become complicated. By now getting money in and out of the Iran is pretty much impossible.

I am sure the breakdown of Iran’s automotive infrastructure was an unintended consequence of the GM-PSA linkup, but I am confident that someone will claim credit and say that this was all part of the plan.  Ironically, the Iran had threatened two years ago to stop parts imports and to bankrupt Peugeot. Someone finally implemented the plan, and it was not Iran.


Get the latest TTAC e-Newsletter!

12 Comments on “The French Connection: GM-PSA Deal Will Bring Iran To Its Knees...”

  • avatar

    This plan will fail horribly since Peugeots never break down nor do they ever need spare parts.

  • avatar

    Unlike its next door neighbour Fiat.

  • avatar

    Good grief! The Paykan still lives?!

  • avatar

    Well, we’ve been doing that for the F-14s that we sold Shah Pahlavi back in the day. How’s that working out?

    • 0 avatar

      That’s been working out just fine. Out of about 80 F-14s sold to the Shah, they claim to still have 44, but only seven can be flown at one time, according to GlobalSecurity. Iran has been forced to cannibalize the bulk of them to keep a few flyable. Iran Bought French Mirages and MiG29s while they still could, but paying for the spare parts for those is now impossible. Iran has a good-on-paper-only air force.

  • avatar

    My previous comments are probably still valid:

  • avatar

    I can hear the cheering from Turin all the way here.

    • 0 avatar

      Wasn’t the original Paykan based on a Rootes product? Hillman Hunter I believe.

      And Chrysler bought Rootes and then sold it on to PSA during the first bankrupty.

      And Fiat now owns Chrysler.

      You couldn’t make this stuff up.

  • avatar

    Bertel, you’ve definitely got more international experience than I do, but was it conscious effort or just rushed editing that left the article referring to “the Iran” so many times?

  • avatar
    Pastor Glenn

    The USA harrasses a national enemy in every way possible, and this worked out just exactly how coming up to World War II? (I’m talking about Japan, which the USA treated in a similar fashion to how it is treating Iran now).

    Yes; I’m fully aware that the USA would most likely win WWIII.

    If living in a radioactive ash-heap could be consider ‘winning’.

    Because it is well known that Iran has had nuke bombs for some 15 years, many of them purchased from ‘scientists’ in the prior Soviet union and (so-called) ex-Soviet ‘republics’. Not to mention that Iran has a working relationship with North Korea – which has nukes.

    Perhaps giving trade a chance would work out for all concerned, instead of declaring economic war on Iran via the cutting off of global banking.

    I don’t think global banking was even cut off for the Soviets during the cold-war, Japan or Germany in WWII, etc.

    As for Israel, they can take care of themselves well enough if there is an attack. (Of course, if Iran attacks Israel, Iran will be a nation of thick, green glass and not much else).

Read all comments

Back to TopLeave a Reply

You must be logged in to post a comment.

Recent Comments

  • Kruser: We had a Colt wagon it was… meh. But, perhaps it didn’t have a chance in comparison to the other...
  • Bike: You throw a lot of “facts” around old mate.
  • Bike: You throw a lot of “facts” around old mate.
  • dal20402: “Wages for most white collar jobs have been the same” This is emphatically not true in either...
  • slavuta: I feel he will not get to enjoy his new $$

New Car Research

Get a Free Dealer Quote

Who We Are

  • Adam Tonge
  • Bozi Tatarevic
  • Corey Lewis
  • Jo Borras
  • Mark Baruth
  • Ronnie Schreiber