American Sanctions Forced Renault Out Of Iran

Derek Kreindler
by Derek Kreindler
american sanctions forced renault out of iran

Following PSA’s exit from Iran last year, Renault is the latest French car maker to leave the Middle Eastern country, thanks to American derived sanctions.

La Tribune reports that Renault will stand to lose about 100,000 units worth of sales in Iran, with variants of the Dacia Logan making up the bulk of their volume. Renault built the cars locally in a joint-venture with IKCO (also a partner of PSA), with Renault holding a 51 percent stake.

Renault’s Carlos Tavares cited American sanctions on trade with Iran as a driving force behind the decision. Violating the sanctions would have had major implications for Renault-Nissan, namely difficulties doing business in the United States. While PSA’s exit was largely blamed on pressure from alliance partner General Motors, Renault’s own decision to leave appears to be motivated solely by the consequences of non-compliance.

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  • Beerboy12 Beerboy12 on Jul 26, 2013

    I wonder how much business the USA looses due to the sanctions?

    • See 1 previous
    • @morbo That's a ridiculous assertion. They are trying to get nukes just to force America to stop economic bullying. Same with North Korea.

  • JD321 JD321 on Jul 27, 2013

    I'm sure Renault will be rewarded for their obedience to the PSA was.

  • Sector 5 Sector 5 on Jul 27, 2013

    Eisenhower put the Shah in eyeran. Carter couldn't get 53 hostages out. Reagan won an election and a gift.

  • 84Cressida 84Cressida on Jul 27, 2013

    Toyota pulled out of Iran in 2010. I remember when Congress was grilling Akio Toyoda over the SUA fiasco one senator asked Toyoda about pulling out Iran for the sake of the US or something like that - completely out of nowhere. Toyoda pulled out later that year because of sales.