Citroen's Iran Strategy Unchanged Despite U.S. Withdrawal From Deal, Parent Company Says

Group PSA launches new car model in Iran but says it remains 'cautious' about the future of its business in the country

An employee polishes the badge of a Citroen C3 Aircross automobile, manufactured by PSA Peugeot Citroen, during the second media preview day of the IAA Frankfurt Motor Show in Frankfurt, Germany, on Sept. 13, 2017.
Bloomberg

French automobile company Citroen is to continue selling its cars in Iran despite the U.S. withdrawal from the nuclear deal, which could see Washington impose sanctions on European companies that continue to do business in the Islamic Republic.

Group PSA, Citreon's parent group, said Thursday that its strategy in Iran remained unchanged in the aftermath of the U.S. decision to withdraw from the deal. PSA brand chief Linda Jackson said that the company told 2,000 Citreon C3 models in one hour when it launched the model in Iran last week.

But PSA remains "cautious" about the future of its Iran business, Jackson said, while waiting for the European Union to take a clear position on U.S. sanctions and trade prospects. 

>> Analysis: Trump to renew sanctions on Iran: A diplomatic crisis for the EU

On Thursday, the European Commission said it would launch on Friday the process of activating a law that bans European companies from complying with U.S. sanctions against Iran and does not recognize any court rulings that enforce American penalties. 

The EU's so-called blocking statute has never been used and is seen by European governments more as a political weapon than a regulation because its rules are vague and difficult to enforce, serving mainly as a warning to the United States.