Iranian producer, Iran Khodro (IKCO) says it can “easily replace” spare parts for its 206 and 405 models, should PSA halt shipment due to EU sanctions against the Tehran regime.
IKCO insists it has not heard anything official from Peugeot concerning any stoppage of parts supply following the French automaker’s decision to comply with European Union sanctions.
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IKCO sales and after-sales service (ISACO) CEO, Behzad Zahiri, said IKCO had not yet received any announcement from Peugeot indicating a halt in their mutual cooperation, despite the French company telling just-auto recently it was reviewing the situation on a month-by-month basis.
PSA has business worth an estimated 1.5% of its US$79bn turnover with its Iranian partner, but ever-more strident pressure from the US and the EU has led it to temporarily suspend parts shipment.
EU and US companies are coming under intense pressure to break off dealings with Iran as speculation grows as to Tehran’s ambitions to enrich uranium – a move some believe could lead to the development of nuclear weapons.
Iran Khodro appears to be bracing itself for component supply to be severely disrupted as EU sanctions start to bite, but is nonetheless striking a confident tone as the economic screw is tightened.
According to Zahiri, should Peugeot stop spare parts supply, these could be “easily replaced” by domestic suppliers or suppliers from other countries.
The ISACO chief notes its spare parts supply rose by 45% in 2011 compared to the previous year and is aiming for a 25% growth in business to IKCO in 2012.
“Taking advantage of domestic production capabilities forms ISACO’s main agenda,” said Zahiri in a statement issued on his behalf. “In this regard, outsourcing parts that can be or right now domestically produced, is impermissible.
“Last year, 37% of the needed spare parts were globally outsourced and ISACO aims to reduce this amount to 23%.”
PSA was not available to comment from Paris due to the May Day public holiday in France, but the automaker recently told just-auto: “”It depends on the political situation – it is because the banks can’t work any longer with Iran. This is a decision that has had to be taken because of European Union regulations.”
ISACO is looking to target Iraq, Belarus, Russia, Ukraine, Venezuela, Senegal, Algeria and Tunisia this year, with the aim of exporting “at least” US$10m of spare parts in 2012.
Neither IKCO nor ISACO answered numerous telephone calls for comment.
