US Sanctions Against Iran Hurting Renault, Peugeot

French automotive companies PSA Group and Renault have linked declines in their first-quarter revenues to their forced withdrawal from Iran under threat of US sanctions.
Data from Iran’s Ministry of Industries indicates a sharp fall in production of French-derived cars in Iran. In the past Iranian fiscal that ended in March, 328,152 French-derived cars were made, almost half compared to 604,526 units made in the previous year.
Peugeot maker PSA Group reported a 1.1% decline in its first-quarter revenue falling to €18 billion, mainly caused by dropping sales outside Europe. In a press release linking the fall to its Iran withdrawal, PSA says its global sales volumes fell 15.7% to 886,400 vehicles in the quarter “in particular due to the suspension of the group’s activities in Iran.”