Peugeot Threatened by the Iranian Government with Bankruptcy

French automaker Peugeot has just received a couple of threats bankruptcy-related, the ISNA agency news reported recently. The Iranian government announced that if it would decide to stop the import of spare parts, Peugeot will likely enter bankruptcy.

"If we decide we can bring Peugeot company to bankruptcy. If we stop the importation of spare parts from Peugeot tomorrow, the company's sales will drop by 2.5 billion dollars," stated Iranian Vice President Mohammad Reza Rahimi. "If we just raise our eyebrows, a part of the French auto industry will collapse," he warned.

Iran is currently producing Peugeot’s 405 and 206 models, which represent a large proportion of cars on the roads of Iran. Some spare parts for these cars are imported.

Aside form Peugeot, the two national companies, Saipa and Iran Khodro, also manufacture vehicles in collaboration with French automaker Renault, for the Logan model, as well as with South Korean brand Kia, for the Pride.

However, Kia decided to stop working with Iran following the international sanctions imposed on the country due to the controversial nuclear program it runs.

Press reports had revealed that the automotive industry in Iran provides about 500,000 direct jobs, as well as opportunities provided by the indirect sector. This makes it the second industry in the country, after the oil sector.

In terms of annual production volume of cars, Iran ranked 18th in the world thanks to exporting its products to various countries around the world, especially nations in the Middle East, Eastern Europe and countries in Latin America.