Code: 639427 A

Minister of Industry, Mine and Trade said that France’s PSA Group and Renault automakers have not yet made an official announcement for pulling back over US sanctions.

The two French car manufacturers have made huge investments in the Iranian car market and have some interests in Iran, said Mohammad Shariatmadari in a press conference on Saturday.

“The PSA Group has made $300 million worth of investment for launching a joint venture company in Iran dubbed IKAP," he said.

"Their exit from Iran is not yet certain," he added.

Iran's car industry was one of the first to be hit by US sanctions, he said, adding, “we are confident, however, that with the help of our own specialists and technicians, we will be able to overcome the impact of sanctions."

Asked about compensations paid by the PSA Group in case of the termination of their agreement, the Iranian minister noted that the contracts signed between Iran and foreign automakers are 'Force Majeure', meaning that the party is allowed to suspend or terminate its commitments in the face of outside threat which is beyond their control.

"The PSA paid the compensations the last time, and will do so this time around," he added. "We will try to replace IKAP with new cars through some other options."

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Renault France's auto makers
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