Sanctions Cause PSA To Suspend Iran Khodro Shipments

Sanctions imposed on Iran by the EU and the United States have compelled PSA to delay parts shipments to Iran Khodro until September at the earliest.

Iran Khodro needs parts to build cars like the 206 and the ancient (by modern standards) 405. The delays are expected to cost both parties about $10 million per month.

Speaking to Just-Auto, a PSA spokesperson said

“We have withheld shipments to Iran until July…It is for financing reasons because of the sanctions. I guess in May or June it will be reviewed. Most factories are closed in France in August, so if you start again it will be in September.”

Some have suggested that General Motors, which has entered into an alliance with PSA, has put pressure on the French firm to suspend or end its ties with the Iran Khodro, but GM steadfastly denies this.

Just-Auto also spoke to an Iran Khodro spokesman who was optimistic that the company could find replacement parts, and expressed hope that negotiations regarding Iran’s controversial nuclear program would go well, leading to a resumption of business as usual. PSA’s Iranian business interests are worth $1.57 billion, or 1.5 percent of PSA’s total revenue.