Peugeot, Renault shares rise after Iran nuclear deal

Shares of French automakers PSA Peugeot Citroen and Renault have risen 4.45 percent and 1.4 percent respectively following Iran’s nuclear deal with the Sextet of powers.

In afternoon trade at the Paris CAC on Monday, Peugeot’s shares soared 4.50 percent to 10.69 euros and Renault rose 1.43 percent to 65.35 euros.

The nuclear deal signed in Geneva early Sunday fuels expectations that the two French automakers could quickly re-enter the Iranian market.

Iran used to be Peugeot’s second-biggest market in car sales volumes before Western sanctions against Tehran were toughened. In 2011, Iran accounted for 13 percent of Peugeot’s annual sales.

Peugeot has experienced an estimated four billion euros in lost sales after cutting ties with Iranian automaker Iran Khodro in February 2012 under pressure from its American partner company General Motors.

The decision by Peugeot also resulted in 8,000 workers losing their jobs.

On July 26, Renault reported a huge fall in profits for the first half of 2013 after writing off the entire value of its business in Iran due to the US-led sanctions against Tehran.

The firm took a 512-million-euro (680-million-dollar) charge after halting its activities in Iran.

Last year, Renault sold a total of 100,783 vehicles in Iran, and had a 10-percent market share. The Middle Eastern country was Renault’s eighth-biggest global market by sales, above Italy where Renault sold 96,144 units and Spain where it sold 83,366 cars.

By Press TV

 

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