Fiat has suspended with “immediate effect” its activities with Iran as pressure ramps up on all western automakers to drop shipments to Tehran.
The move follows intense lobbying by groups, primarily in the US, to persuade vehicle manufacturers and components suppliers to end business with Iran, which they believe to be enriching uranium for possible nuclear weapon development.
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However, Fiat insists it will honour existing commitments to the country that are binding, while at the same time firing a parting salvo of defiance, maintaining its relations with Iran were in no way destined for any other purpose than civilian.
“Sales to Iran-based entities during past years by Fiat’s subsidiaries were totally immaterial in a quantitative and qualitative sense and any concerned products were sold for
commercial and civilian use only,” a Fiat statement said.
“Fiat’s subsidiaries having commercial relations with Iranian entities always conducted their businesses in compliance with all applicable laws and regulations, including those of the United Nations, the European Union and Italy.”
The Italian automaker added its subsidiaries would no longer carry out any business activity related to products or components, where the ultimate destination was known to be Iran.
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By GlobalDataFiat’s move follows that of fellow giant manufacturer, Peugeot, which has dropped shipments of parts to Iranian partner, IKCO, until at least July.
The French automaker has been forced to temporarily stop supplying vital components to Iran Khodro as tighter European Union and US sanctions start to bite, with both parties estimating the halt to be costing around US$10m per month.
Peugeot supplies parts to IKCO for the 206 and 405 models and previously told just-auto its total value of business with its Iranian partners to be 1.5% of its EUR79bn turnover.
