Renault to Resume Iran Exports

Renault is readying to resume the export of car parts to Iran pending “clarifications” on the easing of trade sanctions against the country, said Gilles Normand, chairman of the French automaker’s Asia-Pacific region.

“We can start the preparatory work (with suppliers) while waiting for the go-ahead on the possibility to exports parts to Iran,” Normand said in an interview in Tehran, attending the first International Conference of the Automotive Industry held in Iran. (Reuters/Daily Star, 1 December)

“Such a move would require an opening of financial transactions channels with the country,” Normand added.

Creating special banking channels for items that were exempted from sanctions at Geneva talks, including auto parts.

“There is work to be done since the agreement was signed and clarification on the rules is expected around January 2014,” Normand said. “We are following an extremely pragmatic policy and respect international regulations.”

Renault sold more than 100,000 vehicles, amounting to 10 percent of the Iranian market, in 2012.The automaker’s activity in Iran was hurt this year by U.S. sanctions, which led the automaker to stop the export of car parts in June.

File photo: Employees work at Iran Khodro's joint venture assembly plant with France's Renault to produce the Logan, sold locally as the Tondar. Tehran, 22 September 2007. (Raheb Homavandi/Reuters)

Iran sanctions result in huge downturn for Renault

Above: Pars Khodro production line of Renault Megane 

 According to the BBC:

French carmaker Renault has reported a huge fall in profits for the first half of 2013 after writing off the entire value of its business in Iran.

Net income for the six months to June fell 87% to 97m euros ($129m; £83.7m), down from 774m euros a year earlier, a statement said.

The firm took a 512m-euro charge after halting its activities in Iran because of international sanctions imposed over the country's nuclear programme.

Sanctions are a two-way street. In place of European (and potentially American) cars, Iran is importing and assembling Chinese models.

Without sanctions, carmakers such as Renault and GM would be making considerable profits with Iranian commerce. Boeing would be manufacturing and selling more airplanes; General Electric would be building ten more nuclear reactors, etc, etc.

Imagine what peace and rapprochement with Iran would mean to American economic recovery, and the American employment it could generate.

File Photo: Pars Khodro