February 07-2014
. . . slow re-start
Renault has resumed shipments to Iran and expects its car production there to pick up progressively through the first half of 2014, the French automaker said.
A temporary easing of sanctions has begun to allow a “very low” volume of parts shipments for vehicle assembly in Iran, Renault’s regional boss Gilles Normand told Reuters in an interview last Tuesday.
“The important thing is that we can gradually restart the supply of parts for vehicle production as well as the flow of payments,” said Normand, head of the carmaker’s Asia-Pacific operations, which includes the Middle East.
Normand did not say how the “flow of payments” was worked out. Few banks are willing to work with Iran for fear of sanctions. What’s more, the agreement easing sanctions is only guaranteed for six months.
Overland shipments of parts for the Tondar, the Iranian version of Renault’s low-cost Logan design, have been leaving from Romania since mid-January.
Renault and French rival PSA Peugeot Citroen are keen to resume Iranian vehicle assembly and sales with local partners Iran Khodro and Pars Khodro, to rebuild the significant market position they enjoyed before sanctions were tightened and killed the business in 2012.
A report by the Islamic Republic News Agency (IRNA) said Iran’s vehicle output hit a record 1.6 million in 2011, then fell to 1.0 million in 2012 and 0.7 million last year.
Renault used to supply 100,000 kits a year for assembly in Iran. Peugeot supplied 458,000 hits for assembly and its models were the biggest sellers in Iran.