French carmaker PSA, known for Peugeot brand, exits Iran over US sanction risk

Peugeot Brand CEO at PSA Peugeot Citroen Maxime Picat presents the Peugeot's 108 at the group's stand of the Geneva Motor Show. (File photo: AFP)

PSA Group has begun to suspend its joint venture activities in Iran, the French carmaker said on Monday, following the withdrawal of the United States from a nuclear pact signed with the country.

European signatories are scrambling to save the accord, which they see as crucial to forestalling an Iranian nuclear weapon, by protecting trade with Iran against the reimposition of US sanctions to dissuade Tehran from quitting the deal.

“The group has begun to suspend its joint venture activities, in order to comply with US law by Aug. 6,” PSA said in a statement.

“With the support of the French government, the Groupe PSA is engaging with the US authorities to consider a waiver.”

The suspensions of its joint ventures do not alter PSA’s current financial guidance, the group said, adding that its Iranian activities accounted for less than 1 percent of revenue.

Major French companies operating in Iran include PSA, known for its Peugeot and Citroen brands, and its rival Renault.

Last Update: Wednesday, 20 May 2020 KSA 09:52 - GMT 06:52