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 The country's major carmakers stand ready to start receiving parts
again from French firms PSA Peugeot Citroen and Renault when the
sanctions ease. That could see Iran's stalled car production again
take off, proving a boon to local automakers and potentially draw in
more foreign investment from other manufacturers hoping to break
into the market.
The nuclear deal struck in Geneva puts the brakes on the most
sensitive parts of Iran's uranium enrichment program in return for
relief from economic sanctions. The sanctions expected to lift
include those affecting Iran's auto industry, its petrochemical
exports, the sale of gold and other precious metals anad the supply
of spare parts for Iranian airplanes.
Iran's auto industry has been particularly hard hit by the
sanctions. Car production in Iran this year fell by 72 percent
compared to 2011, when it produced some 1.6 million cars.
The sanctions relief, due to start in early January, allows for the
French companies to resume auto parts to Iran's biggest carmakers
Iran Khodro and SAIPA. Some 100,000 Iranian auto workers have been
laid off because of sanctions. Plants in the country now run at less
than half their capacity.
Officials at an international automobile conference that began
Saturday in Tehran eagerly welcomed the deal.
"Iran's global standing in car production, which was 13, has fallen
(due to sanctions). I'm sure Iran will be able to compensate the
fall of its share in the near future," said Patrick Blain, president
of the International Organization of Motor Vehicle Manufacturers.
"International investors are expected to re-enter Iran's market
soon."
Iranian Industry Minister Mohammad Reza Nematzadeh said Iran's
biggest carmakers are now holding talks with PSA Peugeot Citroen and
Renault in Tehran for new joint venture projects and joint car spare
parts production. That will greatly help Peugeot, Europe's No. 2
automaker, which saw its profits hurt by the sanctions. Peugeot sold
more than 450,000 cars annually in Iran before the sanctions.
Renault sold more than 100,000 cars in Iran in 2011 before pulling
out.
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"PSA Peugeot Citroen and Renault will offer new cars to the market
with the help of their Iranian partners," the minister said.
"They've been big contributors to Iran's auto industry. Given the
Geneva deal, we hope sanctions will be lifted by the end of December
so that joint ventures with foreign carmakers can resume."
Iran Khodro's manager, Hashem Yekeh Zare, said his company is
considering a joint project with Daimler AG's Mercedes-Benz, but
didn't elaborate. Zare said his company is seeking greater
self-sufficiency and is interested in importing auto parts and
licenses for joint production.
Representatives from German, Indian, Japanese and South Korean auto
manufacturers attended Saturday's conference. But despite a recent
thaw in relations between Iran and the U.S., including a historic
phone call between moderate President Hassan Rouhani and President
Barack Obama, no representative from a U.S. automaker attended the
event. American carmakers have been absent from Iran since its 1979
Islamic revolution and the U.S. Embassy takeover. U.S. law blocks
American carmakers from the Iranian market.
That's not to say there's no interest in American muscle cars. An
Iranian advertising campaign in recent months promised an exhibition
of American-made cars but it was never held. Iranian media did,
however, report the arrival of some Chevrolet Camaros to the country
earlier this year, apparently through third parties.
[Associated
Press; ALI AKBAR DAREINI
Copyright 2013 The Associated
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