Category: Iran

Renault Stabs US-French Centuries’ Old Friendship

The US and France have been great allies for centuries. French automaker Renault shows absolutely no regard for it though.

Renault logo

The United States and Iran haven’t gotten along well in the past many years. The US recently imposed a new sanction over Iran which shows that the tension between the countries still exists. While all this was taking place, France was supposed to take sides with the US and keep away from Iranian deals.

Instead, Renault has had the audacity to make a historic deal with the middle-eastern country. The multimillion dollar deal will definitely infuriate the Trump Administration denting the long-lasting relationship.

As per the deal, the French automaker will set up its plants in Iran. These plants will produce around 150,000 cars each year. The project will begin from 2018, and will initially produce Renault’s infamous Duster compact SUV as well as its Symbol.

The appalling move by the French automaker was nothing but disgrace to the terms the US have had with France. What’s even more saddening was the fact that President Trump even had a dialogue with Emmanuel Macron—French President—on the matter. Trump had wanted to lessen Iran’s influence in the Middle-Eastern conflict, but the French automobile industry is out there making historic handshakes with Iran—a true depiction of backstabbing!

Will Iran Be the Next Big Market for French Car Manufacturers?

French cars in Iran

A few years ago, a deal between Iran and a French car manufacturer would’ve been unthinkable.

Iran was an outcast, a global pariah. It was struggling under the weight of crippling economic sanctions over its nuclear program as each of its industries, including automobiles, was reaching the breaking point. However, the 2015 deal between Iran, the US, and the P5+1 States cleared the way for the lifting of economic sanctions and the resumption of trade between Iran and other states.

But now the doorways are open. Iran’s economy is on the way up. And the French car manufacturers don’t want to miss the golden opportunity.

A few days ago, Renault reached a deal with Iran’s government to establish a plant in the country with a capacity to produce 150,000 vehicles a year. The CEO of Renault-Nissan Carlos Ghosn maintains that the demand for cars in Iran could reach 2 million in 2020. Who would want to ignore such a lucrative opportunity?

This is, by no means, the first development between Iran and a French manufacturer. Renault’s rival PSA Peugeot Citroën also wants to produce 150,000 vehicles a year in the country, a figure it aims to double in 2017.

With the number of French manufacturers flocking to capture the blooming Iranian automobile market, it’s clear that the future of French automobile sales lies in Iran.