Sanctions on Iran cause job cuts at Peugeot
Tehran: In France, automaker Peugeot has plans to cut eight thousand jobs. The cuts, which have been deemed unacceptable by French President Francois Hollande, have also angered factory workers. The decision by Peugeot, France’s largest automaker, to axe 8,000 jobs has caused a political firestorm but, ironically, they are in large part caused by France’s sanctions against Iran.
Iran is Peugeot’s largest foreign customer, with a half million in auto sales translating into some several billion Euros each year. However, citing new banking sanctions, Peugeot ended cooperation in February.
Peugeot’s auto sales this year are down nearly a quarter million units, almost exactly the amount that Iran would have normally purchased. Peugeot says a lack of competitiveness is behind the cuts, but union leaders know better. According to reports, giving up the Iranian market might have been the price of Peugeot’s recent alliance with Detroit’s General Motors. GM is now owned by the U.S. government, which has embargoed Iran for decades.
Not all French companies are taking part in sanctions on everyday goods for Iranians. Renault, France’s other major automaker, saw their Iranian sales double last year to 100,000 vehicles, and they expect that number to rise. Perhaps they can provide work for the victims of Peugeot’s job cuts.