Peugeot Stops Iran Output Until September image

In the following five months PSA Peugeot Citroen will not ship production of vehicle kits for assembly in Iran.

“Management informed us that the car kits activity for Iran will remain suspended at least until September,” said Bruno Lemerle, a CGT union representative at the French automaker.

Earlier this year GM declared that Peugeot 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.

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.”

In 2011 exports to Iran accounted for around 13% of the group’s global deliveries last year, but only about 2% of its automotive revenue. Peugeot declared that its decision to end sales in Iran was taken independently and was not influenced by GM or other U.S. interests.