How a French Car Explains Doing Business in Iran | NYT News

How a French Car Explains Doing Business in Iran | NYT News


To understand the twists and
turns of doing business in Iran, look no further
than the Peugeot 405. This boxy, mid-sized
car is everywhere in Iran. But it’s had a bumpy ride. That’s because doing business
there can be unpredictable. Peugeot’s a French company that’s been making cars
for over 100 years. “Because you don’t
get to be the second-oldest
carmaker in the world by making second-rate cars.” But it didn’t start in Iran
until the 1990s. In Tehran it partnered
with Iran Khodro, an automaker that’s partly
owned by the Iranian government. It was a huge success. By the beginning of 2012,
Peugeot was all in on Iran. It had 30 percent of the
automobile market and Iran was a major source
of revenue for Peugeot, second only to France. And among Iran’s middle class,
owning a Peugeot meant that you had made it. But all that changed when
the U.S., European Union and United Nations imposed
tough sanctions to make Iran curb
its nuclear program. International companies
were blocked from working in Iran,
and Peugeot was forced out. “Our company was also
a victim of the sanctions.” Seeing an opening, Chinese car makers leapt
to take Peugeot’s place. And back home in France,
Peugeot is in decline, partly because it lost access
to the Iranian market. By 2014, the company
was slashing jobs and scrambling
for new financing. Then this happened. “Breaking overnight,
a historic deal.” “We have a real opportunity
to achieve a comprehensive
peaceful settlement.” Iran signed a historic
nuclear deal in 2015. As long as the country
met stringent restrictions on its nuclear program, foreign investment
could restart. It was a big opportunity
for Peugeot and the company quickly
moved to take advantage. In 2016, Peugeot began
investing hundreds of millions of dollars as part of a renewed
partnership with Iran Khodro. “It is a real comeback
of PSA in Iran.” And business was
booming once again. These new deals helped double
sales in the region that year. But then — “We will be instituting
the highest level of economic sanction.” Now that the U.S. is pulling
out of the nuclear deal, Peugeot may be going back
to where it started. This country, which has been
tied to so many of the company’s ups and downs,
might be off limits again. It’s a cautionary
tale for investors looking to cash in on Iran.

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About the Author: Oren Garnes

48 Comments

  1. I disagree, this is more of a "cautionary tale" about voting for an unreliable mercurial president.

  2. I was listening to this and only half watching and I was like wtf how have I never heard of this carmaker? (I'm half French). Then I finally noticed the logo and I was like Ooh.

  3. How do many explain doing business with the U.S.A after murderous Zionist thugs like the Bush Crime Family killed millions?

  4. Will the other signatories to the Iran deal simply ignore Trump and his misdirection of American policy? Why not. If the world wants to be rid of Trump they have to refuse to cooperate with him.

  5. 😂 Iranian's are crazy drivers … in Teheran i've seen cars that i didn't see once in my life . but there is nothing like lanes in Iran everybody drive wherever he wants . but i heard that cars are pretty expensive in Iran so there are not so many good cars in Teheran usually low class …

  6. 2:35 No, it is a cautionary tale not to trust american deals. If countries have to second guess any deal made with the USA, because it may not have been achieved through law, but executive order. Either take away the power from the president to make executive orders at all when it comes to treaties with other nations or increase that power in a way so that the next administration can not just torpedo it. You are doing yourself no favour this way and other countries will remember how much time you wasted and goodwill is lost over it.

  7. am i supposed to be more bothered by the mispronunciation of peugeot, the poor sound editing, or the fact that such a simple point (sanctions on Iran = bad for Peugeot) is protracted over 2 and a half minutes?

  8. Trump tearing up the agreement in such a foolish and short sighted manner might force the French government to protect there companies foreign interests.

  9. Is this analysis real? Why on earth would a western manufacturer of automobiles tie its economic health to sales in Iran?

  10. It's really a shame for America to decide for us European if we can make business in Iran. Especially that you have a stupid 10 years old president and that Iran didn't brake the deal.

  11. Europe just won a worldwide lottery, TWICE. Now it has no competition from American companies and can sell all the cars to iran, and yet sell everything by Euro and buy Oil and gas in Euro. Trump just shot America in the foot.

  12. Sad Buffon Trump Only cares about his corporate interest EU members are disintegrating partnership with USA because who would take USA seriously with Trump administration?

  13. The U.S getting out of the deal will put more power in the hands of hardliners in Tehran who have outdated and corrupt monopolies set up in Iran's economy that can never compete with their foreign competitors.

    Foreign companies are currently trying to leave Iran due to the sanctions being reinstated by Trump's administration. These sanctions are going to put more power in the hands of the wrong side of Iran's political structure who are hard critics of the U.S.

    It seems like it the Trump's administration is more interested in overthrowing the Iranian regime instead of working with the more moderate side of it…

  14. Wait… so the Chinese are allowed to do business with Iran? But France and other nation can't? Guess we see who's the REAL BOSS. #XiJinPing4President

  15. 8 freaking separate reports by IAEA confirmed that Iran has been complying 100% with its committments,so this dastardly move by Trump is crooked and ridiculous.His manipulator is Netenyahu,the hypocrite and liar.The whole world now knows how unreliable and treacherous US is.

  16. Peugeot is producing terrible cars in Iran but Iranian people have to buy those cars, they don't have any other choice

  17. "Iranian middle class owning a peugeot showed you made it" lmao…. exactly the opposite it meant in Iran "You not made it yet" , any middle class person that wanted to show he made it in Iran in 2012 had to drive a german car…. (Benz,bmw,porsche) those cars meant you are now upper-middle class.

  18. The world should only use Euro, Yuan, Yen and Indian Rupee as world currency if they want to be free from financial colonisation.

  19. It's not pronounced "poogeot" but more like "puhgeot" like in "DUH ! "
    It's like "boogati" (bugatti) in wich the "U" is correctly pronouced like in " tomb" in English.
    It's not that difficult : )

  20. We Iranians have to use these cars because we can not buy luxury cars. Iran's customs duty is half the price of a car for clearance. These cars are very occupied

  21. Iran is dirty and ugly without any law a lot of Iranians are nice but there is a lot of crazy people

  22. I can't believe US made such a devastating move. It would had been better not to make it to begine with. Last 40 years, we Iranians have suffered at the hands of US and its allies. I don't know why US wants to make sure hatred always stays in the world given all the wrong it doed.

  23. The only reason why doing business in iran is so difficult is because the USA threatens other countries and companies…meanwhile the USA sells billions worth of weapons to crooked saudi kings that go on to committ human rights violations..hypocrites

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