All Achievements of JCPOA for Auto Industry/ The Tale of Contracts

Khodrocar - In 2015, after the success of JCPOA auto industry was the first to start negotiating and foreign partners came one after another. French, Italian and Chinese were the first to announce their readiness for participating in auto industry and Iran’s auto industry take the chance to develop the industry and expanded the auto industry and part manufacturing.

In the first 2 years of development French, Italian, German and Chinese had the chance to participate in Iran’s auto industry but as the Trump became president all thing changed and he emphasized on exiting JCPOA then foreign partners feared from international restrictions and left Iran as soon as they could.

About 3 years after JCPOA only contracts between IKCO and Peugeot for producing 2008, SAIPA and Citroen for producing C3 executed. Now after USA exit the JCPOA the destiny of these contracts and joint venture products are not clear. Among these the contract of Renault and IDRO forgot and didn’t execute.

Among all contracts there were some contracts which stock in the process of agreement. They tried to enter Iran several times by private sector but after all negotiations nothing happened. However, the relation of Iran and Italy was always far from any conflict and they sent their business group to Iran after the JCPOA. They signed different contracts and make us hope for producing 2 million cars annually. However they weren’t very well in auto industry.

Most experts thought that this year would be the year of flourishing of auto industry and high quality of products but since the year began everything changed and Trump’s decisions changed the process of auto industry and influenced on local and imported cars market. Now there is a silence about all contracts and it had impact on market.

Alongside JCPOA contracts, Volkswagen signed a contract with Mammut but now they are seeking to leave Iran but some experts think  USA pressure on German companies is not logical and on the other hand ambassador of Sweden said Volvo won’t leave Iran and they just decrease their activity in Iran because of sanctions but they are not cutting relations with Iranian companies.

However experts believe that Mammut should looking for another country if they could pass the sanctions bravely. Otherwise, the Iranian automotive industry should always remain in the mood for Volkswagen to enter Iran.

With about three years of success and the success of industries such as automotive and manufacturing, nowadays, with the passing of one of the 5 + 1, the automotive industry has suffered the most and the only hope for this industry to be self-sufficiency in domestic and The survival of the relationship with the remaining vertebrae is a comprehensive joint action plan. Should one still wait and see? After the second round of US sanctions, which of Iran's foreign partners whispers to suspend their contracts?

Khodrocar Reporter: Negar Mir Karimi

Khodrocar Translator: Amin Zamani