GM declared that its French partner, PSA Peugeot Citroen has ceased shipments of vehicle components to an Iranian car maker and that the company fully complies with the U.S. law governing trade with Iran.

The decision was taken after GM faced criticism from United Against Nuclear Iran, for agreeing to buy a 7% stake in the French car maker, because Peugeot has in the past supplied parts to Iranian car maker Iran Khodro.

GM, in a statement, said “we have discussed this issue with Peugeot. We understand that they made the decision to suspend the production and shipment of material into Iran some time ago–before we entered into our alliance with them in fact–and have decided to continue with that suspension. Our agreement with them is fully compliant with US law governing trade with Iran, and is not intended to benefit Iran in any way.”

On the other hand, rival Renault, which has a joint venture with local manufacturers Iran Khodro and Saipa, hopes to increase Logan sales in Iran, where it has doubled its sales to 93,600 units last year.

“Sanctions do not apply to the automotive sector,” said Renault, which states “to respect the regulations.”


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