French automaker PSA Group preparing to leave Iran because of U.S. sanctions
The French automaker PSA Group is preparing to withdraw from Iran due to the threat of U.S. sanctions, reported France-Presse, citing a statement from the industrial group.
“The process to suspend joint venture activities has been initiated in order to adapt the situation to U.S. law before August 6, 2018,” the company said.
At the same time, the company’s headquarters stressed that “the company’s management is in contact with U.S. authorities in an attempt to reach an agreement on exclusion from the sanctions.” These discussions, according to the company’s representatives, “are supported by the French government” in the hope of continuing the auto company’s activities in Iran.
Last year, according to its own data, the company sold 444,000 Peugeot and Citroen cars which were produced in its factories in Iran. The PSA Group’s largest foreign market is Iran, exceeding the operations in China, Britain, Italy and Germany. PSA Group is the leader in automotive production in France and is among the top three largest car companies in Europe.
Previously, Bruno Le Maire, Minister of Economy and Finance of France, said that the extraterritorial sanctions of the U.S. will have a direct impact on a number of French and European companies. According to him, this turns the United States into an “economic gendarme of the planet.” Le Maire called such a situation unacceptable.