Trump's economic sanctions threaten PSA and Renault in Iran
- Following Donald Trump's announcement of the US exit from the Iran nuclear agreement , the US Treasury Department said the United States would reinstate economic sanctions on Iran after a transitional period of 90 to 180 days, ie at the end of a period of 3 to 6 months after May 2018.
- Without the United States, the agreement maintained by Europeans, Russians and Chinese (scenario 1) will be difficult to preserve. The assumption that western companies pursuing their business in Iran will be sanctioned is therefore very likely (scenario 2). In this case, the Iranian auto industry risks experiencing the same difficulties as in the years 2012-2013-2014, during which time Iran was already subject to severe economic sanctions. During this time, PSA had to abandon its activities in Iran and it was only after the lifting of the sanctions that the French manufacturer was able to return to Iran. In 2017, PSA sold 443,000 vehicles in Iran (12% of its worldwide sales) and Renault 162,000 (4% of its worldwide sales).
- The two French manufacturers account for 35% of the Iranian market and their re- withdrawal from this market, which could be imposed by the US administration, would be very detrimental both for PSA and Renault but also for the entire Iranian economy, which had managed to return to pre-sanction levels in 2015-2016-2017.
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