Tehran recently hosted the Iran Auto Industry International Conference, featuring 170 delegates from 20 countries, an event of significant importance as the chances of relations warming with the West look ever greater.
Among the high profile attendees were OICA president, Patrick Blain, as well as French suppliers association, FIEV, vice president, Arnaud de David-Beauregard, who took a group of 16 companies to Iran.
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He talked to Simon Warburton about the event coming just days after initial agreement was reached in Geneva concerning the potential lifting of sanctions – including automotive ones – as the West looks to Iran to address its nuclear situation.
j-a: Did the talks in Geneva influence FIEV’s decision to attend the Tehran conference?
ADB: We have been invited to this conference – it was prior to the preliminary agreement of Geneva 1 – it was not in connection – it was just coincidence but [an] appropriate coincidence I would say.
We have been keeping contacts with Iran – they [French suppliers] had a significant business there in terms of components and we made every effort not to have this potential killed.
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By GlobalDataj-a: How did that fit with the tough sanctions imposed on Iran?
AB: We were very much willing to respect the sanctions, we had to clarify what they [members] could do and what they could not do.
Iran is a significant market with a potential for the future. Suppliers have [a] significant position – within the context of the international framework including the French government.
One of the main FIEV tasks is to represent the interests of our members and connection with the French government is for sure one of the targets.
j-a: Despite the coincidental timing of the Swiss tentative agreement, the apparent breakthrough must give some encouragement to automotive suppliers?
ADB: It happened this Geneva 1 agreement was made just before this conference, so it was a great opportunity for us to show the international community the interest of our industry regarding this market.
Just in case a solution could emerge in this international context, we showed our interest to be there.
j-a: What potential do you think the Iranian market has?
ADB: It is difficult to give forecast production level in Iran, because the situation is quite complicated. But looking back, our suppliers were tracing production volume [of] between 500,000 and 600,000 vehicles.
In terms of final assembly of cars, it was around 500,000-600,000 units per year. I think there is a good business relationship between the Iranian automotive industry and French industry.
J-a: What are the main elements for FIEV now in order to do business with Iran?
ADB: We have two issues. We have the sanctions, which were affecting since June the car industry [and] which are, at best, temporarily removed.
At the same time we have [the] issue connected to the banking regulations – that is a problem. It is difficult to say you open the door for the car industry, but at the same time, you do not open the door for banking opportunities.
At the same time you try to open the door on full scale on the Iranian economy to support the change in the global attitude – if you do not provide them with some compensation with their evolution it is not very coherent.
I am just talking about capability for dealing with the financial aspect.
j-a: The US government imposed its Executive Order that affected automotive companies dealing with Iran – what is the situation with that after the Geneva talks?
ADB: This was the Executive Order President Obama had – it was lifted in terms of restrictions [for the] car industry – it is not lifted in terms of banking restrictions.
I feel cautious – it is difficult to anticipate clear orientation. The difficulty lies on the difficulties of the Iran question. Nobody can tell you the situation will be cleared within the next six months – the situation is that complicated.
We try to keep existing contacts – we are there. Our businesses were basically related to the businesses…of the French car makers.
I think there is in Iran a significant industrial basis for this industry and a lot of things can be done, but once again, it depends on the international context.
Our relationship with them [Iran] is OK and it is a kind of historical relationship.
European automotive supplier body, CLEPA, says Arnaud de David-Beauregard is to become its next president.
David-Beauregard will start his new position from 1 January, taking over from current incumbent, Peter Tyroller.
“I am delighted to welcome Arnaud de David-Beauregard as my successor,” said Tyroller. “His knowledge of the automotive industry and his business experience will be crucial for CLEPA.”
