Tehran, Iran, June 12
By A. Shirazi - Trend:
Japanese Auto maker Mazda and South Korea's industrial giant Hyundai have suspended their joint venture activities with Bahman Group, an Iranian private auto manufacturer, an Iranian lawmaker said.
France's PSA Peugeot Citroen, Mazda and Hyundai walked away from their contracts with Iran due to political and economic pressure, Vali Maleki said, according to ICANA on June 12.
Saying that they have unilaterally canceled their deal with Iran, he added that Bahman Group has replaced Mazda with Haval, the SUV division of China's Great Wall Motors.
Maleki further noted that the cancellation of the deals doesn't leave Iran without benefits, as it is now has technical knowledge from experience of working with Mazda and Hyundai.
Chinese automakers will replace the European ones in Iran, he said, adding that not all Chinese cars are low in quality.
A statement attributed PSA said the French carmaker “began the process of suspending the activities of its JVs, in order to comply with US law by August 6, 2018” when the sanctions are about to snap-back into place.
In a speech from the White House on May 8, US President Donald Trump announced the US withdrawal from the nuclear agreement between Iran and the Group 5+1 (Russia, China, the US, Britain, France and Germany), known as the Joint Comprehensive Plan of Action (JCPOA).
Trump also said he would reinstate US nuclear sanctions on Iran and impose "the highest level" of economic bans on the Islamic Republic.
The new US sanctions will take six months to kick in, but a number of European companies have already halted their businesses in Iran despite verbal pledges by their governments to protect them against any fallout.
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