UANI

UANI’s Auto Campaign identifies foreign automotive companies doing business in Iran and working with Iranian regime-owned entities that license-build foreign vehicles and dominate the Iranian auto sector. The auto sector supports the regime in two key ways: 1) as a massive source of revenue and 2) as a means of accessing advanced foreign technologies and products for its military and security forces through manufacturing agreements with such companies as Peugeot and Mazda, among others. Auto-manufacturing represents the regime's second-most lucrative industry after oil and gas and is a central component of Iran’s industrial sector, which accounts for some 50% of the country’s GDP. In spite of sanctions, Iran's auto industry has grown to be the largest in the Middle East and 13th largest worldwide, having built more than 1.6 million vehicles in 2011.

The Iranian auto industry is directly dominated by the Iranian regime and the Islamic Revolutionary Guard Corps (IRGC), Iran's leading military organization and key instrument used to suppress Iran’s internal pro-democracy movement. Iran’s two largest automakers, the Iran Khodro Group and the Saipa Group, are both subsidiaries of the Industrial Development and Renovation Organization (IDRO), an Iranian government body that also controls companies involved in developing the regime’s nuclear and missile programs. IDRO is sanctioned by both the United States and EU. Additionally, Iran’s third largest auto-manufacturer, the Bahman Group, is 45.5% owned by the IRGC.

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Foreign Automakers Active in Iran

Iran’s auto industry is continuing to experience high levels of growth even while international sanctions are closing off a wide range of the Iranian regime's sources of revenue and access to foreign technology. Aided by partnerships with automakers from France, Japan, South Korea, Italy and Germany, Iran’s auto industry has enjoyed more than 20% average annual growth since 2000. Nevertheless, foreign auto makers are beginning to recognize the risks of doing business in Iran. According to a U.S. government report, foreign carmakers are now entering the Iranian market with "caution in light of concerns about U.S reaction and reputational risk."

Such caution is well founded. The IRGC notoriously exploits Western technology, using vehicles imported or license-built by makers such as Volvo Group, Mercedes (Daimler) and Toyota to serve as mobile platforms to stage public executions or transport and launch ballistic missiles. Honda and Suzuki motorcycles are the vehicles of choice for violent gangs of regime-sponsored Basij militia and plainclothes police.

Despite the misuse of their equipment, and U.S. and EU sanctions targeting the IRGC, many automotive companies continue to unapologetically do business with the Iranian regime. For instance, European and Japanese carmakers such as Renault, Nissan, Peugeot, Volvo Group, Mazda, Isuzu and others continue to carry out extensive business and manufacturing agreements with IRGC affiliates such as IKCO, Saipa Group and Bahman Group.

It is time for foreign auto companies to stop enriching the Iranian regime and empowering is agents of repression and terrorism. Automakers must end their Iran business now. To this end, UANI has developed model legislation for adoption by the U.S. Congress that will force auto manufacturers to choose between American taxpayers and the Iranian regime.

The DRIVE Act requires automakers to certify they are not engaged in any business in Iran, or engaged in the implementation of any agreement with Iranian entities in order to be eligible for U.S. government contracts or financial assistance.