Renault Resumes Supply Shipments To Iranian Production Lines

by TTAC Staff

Updated: February 18th, 2014 Published: January 30th, 2014

renault resumes supply shipments to iranian production lines

After a six-month self-imposed hiatus, Renault has begun shipping “a very low volume” of parts overland to Iran for vehicle assembly.

According to Automotive News, over the past 10 days, parts for the Renault Tondar — the variant of the Dacia Logan built and sold by Iran Khodro — have made their way to Iranian production lines overland from Romania upon temporary easing of sanctions against the Iranian government for their nuclear ambitions. The lifting of sanctions is currently expected to last six months after Tehran pledged to freeze key components of their nuclear program, with talks due next month to work out a permanent deal to wind down sanctions in exchange for curbs in Iran’s aforementioned program.

For Renault and their rivals in Peugeot/PSA, the six-month window is crucial in rebuilding their relationships with their partners in Iran Khodro and Pars Khodro, as well as regaining their foothold on the Persian auto market before more players — such as General Motors — enter the room.

According to Renault’s Asia-Pacific boss Giles Normand, the window marks an opportunity to “gradually restart the supply of parts for vehicle production as well as flow of payments,” noting that the current state of things “must be allowed to improve visibly in Iran” lest their customers feel their country has been short-changed through a lack of visible change.

Total production of vehicles in Iran peaked at 1.6 million units in 2011, the year the sanctions were imposed. Renault lost 64,500 deliveries as a result in 2013, marginally dampening global growth to 2.63 million units overall. With the possibility of 1 million to 1.5 million annual sales at stake, Renault nor PSA can afford another setback.

#AutomotiveProduction #Dacia #Embargoes #EmergingMarkets #Iran #IranKhodro #Logan #Renault #Romania #Sanctions #Tondar

TTAC Staff

More by TTAC Staff

Comments

Join the conversation

2 comments

Bigtruckseriesreview @ Youtube on Jan 30, 2014

We should sell them Chevy Volts. Americans don't want them and Iran can use its nuclear power for peaceful energy!

Like Reply
- Masouds on Jan 30, 2014
  
  YES; That'd help them get rid of their smog. Except that they'll be a tad expensive, and gas is still relatively cheap in Iran. Around 30 cents per liter.
  
  Like

Recent Comments

AZFelix UCHOTD (Used Corporate Headquarters of the Day):Loaded 1977 model with all the options including tinted glass windows, People [s]Mugger[/s] Mover stop, and a rotating restaurant. A/C blows cold and it has an aftermarket Muzak stereo system. Current company ran okay when it was parked here. Minor dents and scrapes but no known major structural or accident damage. Used for street track racing in the 80s and 90s. Needs some cosmetic work and atrium plants need weeding & watering – I have the tools and fertilizer but haven’t gotten around to doing the work myself. Rare one of a kind design. No trades or low ball offers – I know what I got.
El scotto UH, more parking and a building that was designed for CAT 5 cable at the new place?
Ajla Maybe drag radials? 🤔
FreedMike Apparently this car, which doesn't comply to U.S. regs, is in Nogales, Mexico. What could possibly go wrong with this transaction?
El scotto Under NAFTA II or the USMCA basically the US and Canada do all the designing, planning, and high tech work and high skilled work. Mexico does all the medium-skilled work.Your favorite vehicle that has an Assembled in Mexico label may actually cross the border several times. High tech stuff is installed in the US, medium tech stuff gets done in Mexico, then the vehicle goes back across the border for more high tech stuff the back to Mexico for some nuts n bolts stuff.All of the vehicle manufacturers pass parts and vehicles between factories and countries. It's thought out, it's planned, it's coordinated and they all do it.Northern Mexico consists of a few big towns controlled by a few families. Those families already have deals with Texan and American companies that can truck their products back and forth over the border. The Chinese are the last to show up at the party. They're getting the worst land, the worst factories, and the worst employees. All the good stuff and people have been taken care of in the above paragraph.Lastly, the Chinese will have to make their parts in Mexico or the US or Canada. If not, they have to pay tariffs. High tariffs. It's all for one and one for all under the USMCA.Now evil El Scotto is thinking of the fusion of Chinese and Mexican cuisine and some darn good beer.