Renault Archives - Iran News Daily

Renault and Peugeot No Longer Have Place in Iran

reporter 1222 — Sat, 14 Sep 2019 21:17:16 +0000

In in an interview with ILNA, Reza Rahmani said that the ministry is to privatize two national auto-making giants IRAN KHODRO and SAIPA but it will happen after both companies are downsized.

IRAN NEWS ECONOMIC DESK

He added that in order not to repeat the past mistakes in privatizations, the government is working to downsize both companies and then to hand over it to the private sector.

He reiterated that the government is not interested in running businesses and it backs privatization.

Rahmani also criticized French giant auto-makers Peugeot and Renault for breaching their contracts after the U.S. sanctions, adding that the country is now seeking to find new foreign partners. He reiterated that both French companies will have no room in Iran’s auto industry any longer in case sanctions are lifted.

He went on to say that soon domestic car-makers will present their export-quality products to the market, adding that they have an eye on exports.

Rahmani stipulated that Iran will definitely sue both French companies and will go for getting damages for breaching the contracts.

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Renault likely to pull out of Iran due to US sanctions

reporter 1222 — Sat, 28 Jul 2018 08:30:55 +0000

Renault SA is shaping up to be the latest European company to fall victim to Donald Trump’s renewed sanctions on Iran, even if it doesn’t sell cars in the US.

Iran operations are likely to be put on hold to comply with US sanctions, Renault Chief Operating Officer Thierry Bollore told analysts during a conference call about earnings Friday, UK-based Bloomberg reported.

“We are looking to new business opportunities, particularly in Africa, with strong growth to offset the missed opportunities in Iran,” he said.

Since debilitating sanctions were eased in 2016, Iran emerged as a hot spot for growth, and trade with Europe surged to more than $10 billion. Now that the US has canceled a 2015 nuclear accord with the Islamic republic and re-imposed trade curbs, companies are rushing back out.

Renault’s French rival, PSA Group, which makes Peugeot and Citroen cars, also suspended its push in Iran. French energy companies Total SA and Engie SA are also heading to a pullout, along with other European industrial giants including Germany’s Siemens AG, which agreed to supply turbines to the country, or plane maker Airbus SE, which had won an order for 100 planes. Payments processor Ingenico Group SA said this week it’s phasing out its activities in Iran.

Even as European government vowed to stand by the nuclear accord, which ended Iran’s program to develop nuclear weapons in exchange for access to global markets, the reality is far more complex.

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Renault to remain in Iran despite risk of US sanctions

reporter 1222 — Sun, 17 Jun 2018 05:10:36 +0000

The CEO of the automaker Renault said Fri. that French company will not leave Iran and will take measures to avoid the risk of US reinstated sanctions.

According to France 24, Renault CEO Carlos Ghosn told its shareholders on Friday that they will not abandon Iran even if they have to downsize their activities very strongly.

“When the market reopens, the fact of having stayed will certainly give us an advantage,” he was quoted as saying by France 24.

Earlier this month, another French carmaker Peugeot-maker PSA Group also announced that it had begun to suspend its joint venture activities in Iran to avoid US sanctions after Washington’s unlawful withdrawal from the JCPOA back in May.

French oil major Total has also announced that it will pull out of a multibillion-dollar gas project in Iran if it cannot not secure a waiver from US sanctions.

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Parl. to hold session on PSA, Renault project suspension

reporter 1222 — Mon, 11 Jun 2018 15:30:49 +0000

Iran’s Parliament will be holding an extraordinary session this week to review the contracts on joint ventures between Iranian and French carmakers as the European side has suspended projects to avoid US sanctions.

A member of Iranian Parliament’s Committee on Industries and Mines told Mehr News correspondent on Monday that an extraordinary session will be held, most likely this week, to review the type of contracts signed by Iran Khodra and Saipa with the French carmaker Peugeot-Citroen (PSA) and its rival, Renault.

“The Citroen project is almost finished in Kashan, and the machineries for new productions have been installed,” said Abdollah Razian, adding “therefore, we are not certain what policy the PSA will adopt in response to the US new sanctions.”

On June 5, the French carmaker PSA Group announced its decision to suspend joint venture activities in Iran “to comply with US law by Aug. 6,” when the sanctions are about to snap-back into place.

Razian noted that the suspension of Citroen project in Iran would deal a considerable amount of damage to the French company as the contracts signed with Citroen were more solid than the ones signed with Peugeot and Renault, and as such all damages due to abandoning the project would fall on the French side.

The Iranian MP went on to add that while Renault and Peugeot have not yet made any serious investment in Iran’s automotive industry, the Citroen group has already made its investments, installed its equipment and is expected to introduce its cars to the market by June 21.

He said that the Parliament session would review the contracts to see what kind of guarantees have been obtained from these two French companies that would allow Iran to receive compensations for the suspension of the projects.

Razian further added that Iran’s car industry would continue to work with the Chinese side while European companies were pulling out from projects due to US sanctions, but voiced concern that the situation might cause price hikes in the Iranian market.

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Renault’s investment in Iran to hit €800m

reporter 1222 — Wed, 14 Feb 2018 07:47:50 +0000

TEHRAN – French automaker Renault is going to expand activities in Iran, boosting its total investments in the country to €800 million, IRNA reported quoting the company’s director for MENA region.

Speaking at the 5th edition of Iran’s Automotive Industry International Conference in Tehran on Tuesday, Pascal Felten noted that with the new round of cooperation between Iran and Renault beginning, the company will create 10 times more job opportunities in the country.

The director asserted that the jointly-made products will have less pollution and more quality and safety and will be presented with more competitive prices.

Earlier in August 2017, Renault inked a €660-million deal in Tehran to form a joint venture company for establishing a plant with an initial production capacity of 150,000 vehicles a year.

Through manufacturing of over 160,000 vehicles in Iran, Renault hit a record high in 2017, according to a report by the Communications Department of Renault Pars (a joint venture established in 2004 between France’s Renault and Iranian car makers Iran Khodro and Saipa).

The report said that production of Renault in Iran witnessed a 48-percent growth in 2017 and gaining 11 percent of the Iranian market, the company experienced its most successful year of performance in the Middle East country.

Centering on competitive supply chain issues (raw materials, parts manufacturing and logistics), the 5th edition of Iran’s Automotive Industry International Conference (IAIIC 2018) is being held on February 13 and 14 at Milad Tower Conference Hall in Tehran.

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Renault’s production in Iran hits a record high in 2017

reporter 1222 — Wed, 17 Jan 2018 05:45:43 +0000

TEHRAN- Through manufacturing of over 160,000 vehicles in Iran, Renault hit a record high in 2017, according to a report by the Communications Department of Renault Pars (a joint venture established in 2004 between France’s Renault and Iranian car makers Iran Khodro and Saipa).

One day after Renault released the report of its global activities in 2017, Pascal Felten, the company’s director for MENA region, said Iran has played a noticeable part in the French company’s last year achievements.

He said: “Results in Iran were noticeable and with a growth of about 50 percent in the Iranian market, the name of Iran is now shining in Renault’s world.”

In a press conference on Tuesday, Renault Pars Managing Director Ramtin Esmaili highlighted the record high of 160,000 vehicles in 2017 and said: “Before that, the highest production has been 108,000 vehicles in Iran.”

Renault’s daily production in Iran also hit a record high of 766 cars during 2017, he added.

Iran in ‘top ten’ list of Renault Group

Elsewhere in his remarks, the managing director of Renault Pars said: “Renault Group comprises five brands of Renault, Dacia, Renault Samsung Motors, Alpine and LADA and Iran gained the position of the eight largest market of this group in 2017. In this way, we came to the list of ‘top ten’ largest market. Also, Iran became the third largest market of Renault brand in last year which placed the country in the ‘top three’ list of the brand which is a noticeable achievement.”

“Taking the third place indicates that while boosting the quantity of production we have managed to preserve quality as well”, Esmaili underlined.

Quality the most important factor

Esmaili mentioned quality as the first and main factor in his company. He also referred to elevation of quality level in the activity of their suppliers and said: “Our suppliers are inside the country and achieving the production figure of 160,000 cars indicates that the quality of their work has been promoted to supply parts for this amount of production.”

He further announced that for modernization of products, Renault Pars equipped all of its products with JHQ gearbox which is a new generation of integrated manual gearbox.

Measures underway to boost exports

Renault Pars managing director further put the company’s exports at 5,500 cars before the sanctions and said the exports is being revived.

“We are conducting necessary investigations in the target countries”, he noted.

“We are also working on the plans for the exports of parts and raw materials. Two parts as samples have been already sent to Russia and South Africa, and we are also cooperating with a petrochemical company for the production of raw materials to be used domestically and be exported”, Esmaili further announced.

He also said that they have boosting production and manufacturing new products among their plans for the next year.

Last October, Carlos Ghosn, the CEO of Renault, announced that his company has a long-term serious plan for presence in the Iranian market.

Making the remarks during a press conference in Paris on revealing the company’s mid-term plan, the CEO underlined the significance of Iranian market and stressed that Renault will not leave the country.

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