Until now, Daimler announced it will give up its 30 percent stake in Diesel Engine Manufacturing and withdrew pending applications to export three-axle commercial vehicles for civilian use to Iran (April), while Toyota announced that it is suspending the shipping of vehicles to Iran in August.
In Kia's case, the stop in deliveries might have a more significant effect on the Iranian automotive industry, as the South Korean carmaker is a force to be reckoned with in the country.
According to just-auto.com citing the South Korean manufacturer, one of the Kia models present in Iran, the Pride, represents about one third of all the cars on Iranian roads. In 2009, the company exported to Iran 4,210 vehicles, as well as 7,040 Complete Knock Down kits (CKD) to be assembled locally.
So far, the sanctions imposed to Iran have forced three quarters of South Korea's exporters to stop their business in Iran. According to AFP, most of the rest have begun restricting their exports to the country.
The decision made by Kia was announced after last week the South Korean government announced the measures it will take to comply with US-backed United Nations sanctions over Iran's suspected nuclear weapons program.
"South Korean government sanctions were part of the decision," Kia spokesman Michael Choo told AFP.
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