Renault to return in Iran with more confidence

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After the “forced” 2012 exit from the Iranian auto market, the French carmaker Renault plans to increase its presence in the country when the company resumes operations.

Increasingly more automakers are revealing their intentions regarding a comeback into the Iranian market, after the economic sanctions against the country were lifted. The Chief Executive Officer of the Europe’s third-biggest carmaker, Carlos Ghosn, plans a “much more massive” presence in Iran, expanding Renault’s operations by closing more deals with a wider range of local partners, he said in a Bloomberg Television interview at the World Economic Forum in Davos, Switzerland. Renault will form an extensive investment program for the comeback once an international legal plan for restoring business will be implemented, Ghosn said. “We’re waiting for the light to go from orange to green,” he added.

Renault put on hold its operations in Iran in 2012 to comply with trade sanctions, resulting in a 514 million-euro (around 560 million dollars) provision that hurt earnings. Another French carmaker, PSA Peugeot Citroen, said last year that it also wanted to return to the market, but it was struggling to close an agreement with former partner Iran Khodro, country’s biggest automaker, because Peugeot’s abrupt 2012 exit affected its image.

After the opening of the Iranian market, Audi also said it was considering a first time entry, as it sees great potential for premium cars, while Mercedes-Benz passenger cars is also evaluating this opportunity. Daimler has already signed letters of intent with its local cooperation partners Iran Khodro Diesel and the Mammut Group for a re-entering with its truck division.

Via Bloomberg