The production of PSA/Peugeot-Citroen's automobile kits to be delivered for assembly in Iran will still be shut down at least until September, disclosed Bruno Lemerle, a CGT union representative at the automaker, citing an announcement by the management. Lemerle revealed the information on the sidelines of a meeting with PSA management regarding the impact of the automaker's new partnership with General Motors Co.
PSA rejects opinions that it caved under pressure of the U.S. over Iran, after GM stated in March that it had discussed alliance sales during partnership talks and that it obtained assurances from its French partner that sales to Iran won’t resume.
PSA halted shipping automobiles to Iran in "knocked-down" kit form earlier in 2012, after worldwide sanctions preventing transactions with the banking system of the nation made it difficult to acquire sales financing. Exports to this country accounted for around 13% of the group's worldwide deliveries in 2011, but only around 2% of its automotive revenue.
Iran was the second largest market for Peugeot in terms of volume in 2011. According to a Peugeot spokesperson on March 29, the decision of ending sales to Iran had been made independently and was not influenced by GM or any U.S. interests.
GM has a 7% share in PSA since a capital increase of 1 billion euro or $1.3 billion by the Paris-based automaker that ended last week, strengthening their broad-based partnership plan announced on February 29. [source: Autonews]