Automotive

"The Chinese automaker, BIAC, plans to set up a car plant in Iran in the next year, the ISNA news agency reported on Wednesday. The representative of BIAC in Iran, whose name was not mentioned, said that the plant will be established through a joint venture between BIAC and Iranian Diar Khodro car manufacturing company. He said that the company's long-term plan is to manufacture 100,000 passenger cars in Iran by 2020, and export a number of those cars to the Middle East countries." (Tehran Times, Chinese automaker to set up car plant in Iran, 6/11/2014)

"Geely Automobile Holdings Limited reportedly sells its products in Iran. In 2019, CalSTRS identified Geely Automobile Holdings Limited as potentially having ties to Iran and began the review process. The engagement has been delayed by shutdowns related to the COVID-19 pandemic. Accordingly, CalSTRS maintained an “Under Review” status in 2020."

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In 2019, CalSTRs listed Geely Automobile Holdings Limited as under review for reportedly selling its products in Iran.

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In 2018, the Financial Tribune reported, “Iranian automotive firm Arian Khodro Pars has brought several units of Geely cars into the country to be tested by Institute of Standards and Industrial Research of Iran and the Ministry of Industries so as to obtain clearance for mass imports. The First Geely units are expected to enter the Iranian auto market by the coming summer…During the closing days of the last Iranian year which ended in March, Arian Khodro signed a contract with the Chinese automaker over imports of Geely cars into Iran.”

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"Private automaker Bam Khodro has launched a production line for China’s Geely GC6 sedan, in the city of Bam in central Kerman Province." (May 2017)
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Geely owns Swedish car manufacturer Volvo, which has a history of doing business in Iran.

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"Iran totally imported 51,967 cars in the first half of the current Iranian calendar year (March 21 - September 22). Hyundai with 24,991 cars was the main exporter of cars to Iran in the mentioned period, Peykhabar News Website reported on Nov. 15. Kia Motors with 9,339 cars, Geely with 5,783 cars..." (Trend, "Korea’s Hyundai gains lion share of Iran’s car imports market," 11/16/14)

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Geely maintains a Geely Iran website, as well a dealership in Tehran, known as Geelran.

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"Zhejiang Geely Holding Group Chairman Li Shufu said Saturday his Chinese mass-market auto brand Geely can use technology from his Volvo brand and a newly streamlined brand strategy to get back on track for growth after a sharp sales drop in the first quarter. In an interview, Mr. Li said Geely ‘made some detours and made mistakes,’ but ‘now is the time to mend our fence. Now we're on the right track’…Geely's unit listed in Hong Kong posted first-quarter sales of 89,607 vehicles, down 37%. The company's export volume fell 55% to 6,829 cars in the first two months of this year. It exports cars to Russia, Ukraine, Saudi Arabia, Iran and Egypt.” (Wall Street Jouranl, “Geely Says Volvo Technology, New Brand Strategy Can Get It Back on Track,” 4/20/14)

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“On the north Tehran stretch of the busy Shariati Street, the newly opened car dealership, Geelran, offers a range of Chinese-made vehicles to middle-class city dwellers. A stone's throw from the former grounds of the British embassy, left vacant after a hostile takeover by anti-western demonstrators in late 2011, the new headquarters of the Geely brand is the second Chinese automobile manufacturer in Iran…Meanwhile, Geely's Emgrand EC7 hatchback has a slightly lower price range (38.7m tomans), suggesting that Zhejiang Geely Holding Group is angling to attract a slice of the local consumer market as sanctions make western-made goods difficult to come by – but at a quality experts say is far lower than the European-made cars it imitates.” (The Guradian, “China floods Iran with cheap consumer goods in exchange for oil,” 2/20/13) 

Changan Automobile appears in 2017 Tehran Auto Show that took place in November 2017.

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On its company website, Changan lists six overseas plants, including in Iran and America.

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"Managing Director of SAIPA auto manufacturing company said with regard to the existence of proper infrastructures in the country the government has put support for foreign investment on its agenda. Saeed Madani, speaking at the second International Conference on Auto Industry, further remarked that SAIPA auto manufacturing group is capable of manufacturing 945 thousand vehicles in the country plus 46 thousand in foreign sites such as Syria, Iraq, Venezuela and Sudan... He said negotiations have been held with Volvo and expressed hope that manufacture of this brand will commence jointly, adding that at present SAIPA has joint cooperation with Renault, Nissan, Kia, Brilliance and Chang'an." (IRNA, "Support for Foreign Investment in Auto Manufacturing Industry," 12/1/14)

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In 2001, Changan Automobile Co. Ltd. engaged in a joint-venture with American car manufacturer Ford. Together the two auto companies created Changan Ford Automobile Co., Ltd. According to Changan's company website, in 2003 "It was renamed ‘Changan Ford Mazda Automobile Co., Ltd.’ (Changan Ford Mazda Automobile) when Mazda Automobile participated in shareholding of Changan Ford Automobile. The three way equity was 50% for Changan, 15% for Ford and 15% for Mazda." (Company Website) The Changan Ford Mazda Automobile Co., Ltd plant is listed on Ford's Website.

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“Iranian Saipa and Chinese Changan car manufacturing companies have agreed to produce two models of cars jointly, ISNA reported on March 8 The two sides signed an agreement in this regard at the Changan factory's site, located in the city of Beijing. The two models of car will be produced in Saipa Kashan, a subsidiary of Saipa, which has the capacity to produce 180,000 cars per annum…On Feb. 18, Ali Ali-lou, a member of the Iranian parliamentary Industries and Mines Committee, said Iran was planning to cut car import tariffs to zero in two year period. He said the measure was necessary to boost domestic production and make the auto industry competitive with its counterparts worldwide, according to Al-monitor website…In the fiscal year ending on March 2013, Iran's vehicle production fell to 920,000 units, down from 1.65 million in the previous 12 months. Over the past 11 months, production has declined even further to about 655,500 due to external shocks, stemming from the intensification of trade and financial sanctions since 2011, coupled with macroeconomic and microeconomic mismanagement. Iranian auto manufacturers hope that the sanctions relief announced in January will provide a breath of fresh air to the sector, which has shed 115,000 to 130,000 workers since July 2011.” (Trend, “Iranian, Chinese firms agree to jointly produce cars,” 3/10/14)

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“Chongqing Changan Automobile Co, a China partner of Ford Motor, said on Friday it plans to assemble compact cars in Iran starting next year as it speeds up expansion overseas. Changan's compact Benni, which it developed in-house, will be assembled at a facility near Tehran beginning in the first half of 2009, targeting the local market, the Chinese company said in a statement. The facility, to be built by its partner Pars Industrial Development Foundation, will have initial annual capacity of 50,000 units, rising to 250,000 eventually, it said. Changan, which runs a three way tie-up with Ford and its Japanese affiliate Mazda Motor, is among a growing number of ambitious Chinese automakers hoping to build up a global brand name. It aims to sell 200,000 vehicles overseas in 2010, up sharply from roughly 50,000 last year, a company spokesman said.” (Reuters, “China's Changan to assemble compact cars in Iran,” 5/30/08)

Michelin has a major U.S. presence

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“Temporary sanctions relief hasn’t yet translated into an economic turnaround in Iran. But at the Melal Hotel, business hasn’t been this good in years. Employees of French drug maker Sanofi Aventis SA and tire maker Cie. Générale des Etablissements Michelin mingle on a recent morning among the still lifes and faux-leather chairs of the hotel dining room...Businesses exploring the Iranian market ‘do so at their own peril right now,’ U.S. President Barack Obama said last month, ‘because we will come down on them like a ton of bricks.’ But that hasn’t stopped companies from boosting their presence or sending in advance teams—essentially making exploratory visits in the hopes that sanctions may be lifted further and permanently... Sanofi and Michelin decline to comment.” (Wall Street Journal, “As Iran Sanctions Ease, Western Firms Seek a Way In,” 3/27/14)

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"International firms racing to do business with post-sanctions Iran could jeopardize their contracts with the the United States military. Three Republican lawmakers who serve on the House Armed Services Committee warned French firms last week that dealings with Iran could make it impossible to do business with the Pentagon in the future. ‘We write to you with grave concern about what we see as the unraveling of our sanctions regime involving the nuclear weapons, ballistic missile, and terrorism activities of the Islamic Republic of Iran,’ wrote Reps. Doug Lamborn (R-CO), Trent Franks (R-AZ), and Joe Heck (R-NV), in a Feb. 18 letter to Defense Secretary Chuck Hagel, obtained by The Daily Beast. The lawmakers noted that over 100 French business executives traveled to Iran in early February…But one of the firms represented at the meeting also has earned over $2.4 billion from contracts with the U.S. military since 2007 – Michelin. The lawmakers singled out Michelin and called their participation in the Iran trip ‘greatly troubling.’ ‘We urge you to direct the Department to make clear to Michelin that any business with the Islamic Republic of Iran would make further contracts with the Department of Defense impossible,’ the lawmakers wrote to Hagel. They also asked the Pentagon to report back on how the U.S. government could terminate existing contracts with Michelin, if it wanted to, as well as what would be the costs of such terminations. A Congressional aide close to the issue said that if Michelin does enter into new business with Iran, lawmakers would try to use the annual defense appropriations and authorization bills to cut off the flow of U.S. taxpayer money to the French company…The Pentagon did not respond to a request for comment and has not yet responded formally to the lawmakers’ letter…Michelin's Managing Chairman Jean-Dominique Senard told The Wall Street Journal earlier this month that the company wants to resume business in Iran if sanctions are lifted and does not want to lose out to other companies preparing to take advantage of the new opportunities there. ‘What I don't want is that when trading with Iran eventually resumes we discover that other companies have profited from a situation in which we have toed the line,’ he said. ‘That would be very upsetting.’” (The Daily Beast, “Lawmakers Warn Michelin Over Iran,” 2/24/14)

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“Michelin is keen to resume exporting its car and truck tires to Iran once international sanctions on trading with the country are lifted and is keeping a watchful eye on competitors that might try to get a head start by bending the rules. Cie Générale des Etablissements Michelin was part of a delegation of more than 100 French company executives that visited Tehran last week to sound out the local authorities over prospects for a resumption of normal commercial relations between Iran and the rest of the world…’We are extremely respectful of the international embargo rules, but we need more visibility on what's happening,’ Michelin's Managing Chairman Jean-Dominique Senard told The Wall Street Journal Tuesday. Iran was Michelin's biggest market in the Middle East until international sanctions over Iran's nuclear ambitions were imposed. Its exports to Iran were eventually phased out in 2011…Mr. Senard said Michelin was treading cautiously. ‘What I don't want is that when trading with Iran eventually resumes we discover that other companies have profited from a situation in which we have toed the line. That would be very upsetting.’ Meanwhile, Michelin said it would cushion the blow to shareholders of a 28% decline in net profit last year by increasing its dividend as it forecast a recovery in sales' volumes this year.” (Wall Street Journal, “Michelin Eager to Resume Iran Trade,” 2/11/14)

On its Company Website, New York General Trading says “We have worked with big companies like Mitsubishi, Daewoo, Toyota, Hyundai & Mazda.

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“Today the U.S. Department of the Treasury announced actions targeting a diverse set of entities and individuals located around the world for evading U.S. sanctions against Iran, aiding Iranian nuclear and missile proliferation, and supporting terrorism.  These actions reflect the United States’ sustained commitment to continue enforcing our existing sanctions as the P5+1 and Iran work toward a comprehensive solution to address the international community’s concerns over Iran’s nuclear program. ’The global targets designated today play key roles in supporting Iran’s nuclear program and active support for terrorism.  The United States has made clear that as it implements the Joint Plan of Action, contingent on Iran satisfying its own commitments, the overwhelming majority of sanctions remain in effect and will continue to be vigorously enforced,’ said Under Secretary for Terrorism and Financial Intelligence David S. Cohen. Today’s actions target entities and individuals located across the world, operating in Turkey, Spain, Germany, Georgia, Afghanistan, Iran, the United Arab Emirates, and Liechtenstein…Pursuant to E.O. 13608, which targets foreign persons engaged in activities intended to evade U.S. economic and financial sanctions with respect to Iran and Syria, the Department of the Treasury sanctioned Georgia-based Pourya Nayebi, Houshang Hosseinpour, and Houshang Farsoudeh and eight companies owned or controlled by these individuals…Treasury is also imposing sanctions on eight companies located in multiple countries that are owned and/or controlled by Nayebi, Hosseinpour, and Farsoudeh (acting individually or together), including: Caucasus Energy (Georgia), Orchidea Gulf Trading (UAE and/or Turkey), Georgian Business Development (Georgia and/or UAE), Great Business Deals (Georgia and/or UAE), KSN Foundation (Liechtenstein), New York General Trading (UAE), New York Money Exchange (UAE and/or Georgia), and European Oil Traders (Switzerland)…On multiple occasions, these front companies deceived the international financial community, including by generating false invoices in connection with transactions involving designated Iranian banks.“ (U.S. Department of Treasury, “Treasury Targets Networks Linked To Iran,” 2/6/14)

"Italy's Pininfarina automotive design house has signed a €70 million commercial agreement with Iran Khodro Group for the development of a technological automotive platform on May 9. The agreement between the two firms will help develop a modular automotive platform, able to house at least four different vehicles, and the first passenger car of the medium segment of the market, a press release from the Italian firm said. The 36-month deal by the two auto firms will see a new concept architecture developed as well as a new design concept for future vehicles. Chief Executive Officer of Pininfarina Group Silvio Pietro Angori said following the deal: “The agreement with Iran Khodro represents another important step in the growth strategy of Pininfarina on markets of the new Silk Road and the Middle East." (Financial Tribune, "Pininfarina, Iran Khodro Design Deal Signed," 5/11/2017).

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"The Second Iranian Auto Industry International Conference 2014, held in Tehran on December 1, was attended by representatives of over 30 countries' automobile and auto spare parts production companies and ambassadors of 17 states to Iran... Some of the foreign managers, experts and officials present at the confab included... Managing Director of Pininfarina SpA Silvio Pietro Angori..." (IRNA, "World Auto Giants Eager to Cooperate with Iran," 12/10/14)

“Sasan Ghorbani says the Iranian auto industry conference he’s organizing in Tehran next weekend is suddenly a hotter ticket than he’d expected. Visas will be made available upon arrival to meet a surge in demand after the last weekend’s Geneva agreement to ease trade restrictions on Iran, said Ghorbani, head of the Islamic Republic’s auto-parts manufacturers association…Among confirmed participants in the Iran Auto Industry International Conference on Nov. 30 are Renault SA and Italy’s Pininfarina SpA, according to the event’s website. Their arrival holds out the promise of investment in an economy driven into recession by sanctions, and may add to the post-Geneva optimism that’s also on view in Iran’s unofficial currency markets, where the rial has surged since the accord was signed.” (Bloomberg, “Iran Accord Sparks Race to Tehran as Automakers Target Deals,” 11/26/13)

According to the Tuvpr website, Tuvpr is the exclusive representative for AVL in Iran.

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“Iran’s TUVPR and Austria’s automotive consulting firm AVL have signed a deal worth 110 million euros for the production of low-consumption Euro 6 engines, ….  The agreement was signed by a consortium of four Iranian and foreign companies on the sidelines of an Iran-EU trade and investment conference which opened in Vienna on Thursday, TUVPR Managing Director Seyyed Mojtaba Mirsoheil said.” (Press TV, “Iran, Austria firms sign auto engine deal,” 7/23/2015).

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AVL has two U.S. subsidiaries,  AVL North America, Inc. and AVL Powertrain Engineering, Inc. AVL North America has received over $12 million in U.S. government contracts, and AVL Powertrain Engineering has received over $6 million in U.S. government contracts.

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“The research department of Iran's Oil Ministry has signed a deal with Austrian AVL to develop energy saving projects in the Iranian oil industry, IRNA quoted the research department's head, Amir Abbas Hosseini as saying on March 1. The main part of the research department's activities is related to the export of technical and engineering services in the oil industry's upstream sector, he added. Iran is currently providing Iraq and Sudan with educational and operational services, IRNA quoted director of the Iranian Oil Research Center Hamidreza Katouzian as saying on January 3. A number of Iraqi oil engineers have passed educational courses in Iran in cooperation with the Iranian Oil Research Center, he said. Most of the services to Iraq and Sudan are related to the upstream sector of the oil industry, he noted. Iran will also export oil industry technology to Indonesia for revival of 'dead' oil wells, he further said.” (Trend, “Iran signs deal with Austrian firm for energy saving project,” 3/1/14)

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“Multiple companies currently exploring new business ventures in Iran are also cashing in on highly lucrative contracts with the U.S. Defense Department, raising questions about whether their dealings with Iran could run afoul of U.S. law. At least 13 major international companies have said in recent weeks that they aim to reenter the Iranian marketplace over the next several months. The companies have received Pentagon contracts totaling well over $107 billion, according to a Washington Free Beacon analysis that tracked DoD contracts awarded since fiscal year 2009. Many of the companies, which include carmaker Renault and oil giants such as BP, have already sent high-level trade delegations to Tehran to meet with Iranian officials about striking new business deals…These companies include Boeing and General Electric—which have DoD contracts worth $87 and $12 billion respectively—as well as the Italian oil company Eni, Merck, Safran, Vitol, Bosch Rexroth, Sanofi Pastuer, and AVL.” (Washington Free Beacon, “Pentagon Contractors Exploring Business with Iran,” 2/25/14)

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“A delegation of about 10 Austrian companies hoping to win post-sanctions business in Iran following its nuclear deal with world powers will visit Tehran this weekend, the Austrian Chamber of Commerce said…A spokesman for the Austrian Chamber of Commerce said its vice president would go with representatives of the 10 companies on the trip to Tehran, which has had good relations for decades with neutral Austria. The chamber did not want to name the firms but Austrian newspaper Die Presse said that rail technology firms Plasser & Theurer and AVL, high-rise engineering firm Doka, engineering consultants ILF and cable car maker Doppelmayr were among them…Doppelmayr said it would have regional representatives at the talks organised by an Austrian trade representative in Tehran, and AVL said it was sending a delegate. The other companies named had no immediate comment.” (Reuters, “Austrian trade delegation to visit Iran after nuclear deal,” 12/4/13)

"The Renault Group is preparing a replacement to one of its most successful models, the Dacia Logan, which was first introduced onto the market in 2004. Designed from the beginning as an affordable car to buy and maintain, the Logan has been sold around the world under different brands and names including Renault Logan, Nissan Aprio (Mexico), Mahindra Verito (India) and Renault Tondar 90 (Iran)." (Car Scoops, "Scoop: Next Generation Dacia Logan Low Cost Sedan in the Making," 6/23/2012)

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"Dacia is one of the [Renault] Group’s and [Renault-Nissan] Alliance’s key brands. The ILN Centre (International Logistics Network) in Mioveni delivers Logan parts to assembly plants in Morocco, Columbia, Russia, Iran, India, Brazil, and South Africa." (Dacia Group website, "Renault-Nissan Alliance")

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"Monday, 10th of October 2011, at Uzina Mecanica and Şasiuri Dacia (UMCD) was manufactured the JH gearbox with number 2,000,000. It is a gearbox of type JH3*057 that will equip a Logan vehicle manufactured in the Renault Pars factory from Iran." (Dacia Group website; Press Release, "2 Million Gearboxes Produced at Uzina Mecanica Dacia," 10/11/2011)

“Korea's automotive parts makers such as Hyundai Wia are in danger of losing the money from selling auto parts to Iran. As the United States government extended the sanctions on the pariah nation to be in effect on July 1, it has also banned financial transactions such as payments for bills payable. To make matters worse, most Korean banks have stopped releasing the money wired by Iranian importers even before the sanctions go into effect… Given Hyundai Wia supplies 95 percent of its parts to Hyundai and Kia, the new sanctions will hurt the company's bottom line acutely.” (The Korea Economic Daily, “Hyundai Wia in Danger of Losing Big in Iran,” 6/27/13)

The Iranian company HEPCO lists Volvo products under license on its company website. HEPCO Website, “Under License.”

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According to its website Volvo Car Corporation has no official distributor / authorized repairer in Iran. 

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Swedish truckmaker AB Volvo has stopped assembling trucks in Iran because U.S. sanctions are preventing it from being paid, a spokesman for the company said on Monday. (Reuters, 9/24/2018).

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"The CEO of Swedish Volvo Trucks has announced that the company intends to increase its investment and operations in Iran. On the sidelines of his trip to Iran, the CEO of Volvo Trucks Claes Nilsson told the ISNA news agency, “The Company manufactures its vehicles in Iran with the same technology it uses in Europe”. "We have invested in truck body manufacturing in Iran and we intend to expand our investment in this sector," he added." (November 5, 2017)

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"SAIPA Diesel a subsidiary of SAIPA, Iran’s second largest automaker, will start production of three new models of Volvo FM trucks in the coming months. The company has been producing several models of Volvo trucks in recent years. But according to the local automotive website, Persian Khodro, production of the FM series was halted five years ago." (Financial Tribune, "Volvo to Make Trucks in Iran," 1/26/2017).

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Volvo is listed as a participating company at the 14^th International Exhibition of Transportation & Urban Services & Related Industries which takes place October 27-30^th, 2016 in Tehran Iran. (Participating International Companies)  

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"Swedish Volvo Trucks Corporation even didn’t wait for those talks to conclude, resuming its production in Iran in May by opening a line for a new generation of Volvo FH trucks at Saipa Diesel west of Tehran." (PressTV, "'Gold Rush' Begins for Iran Business," 7/20/15)

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“Swedish Volvo Trucks Corporation has resumed its production of heavy trucks in Iran, putting an end to four years of absence from the country's massive market under sanctions. The company marked its return by opening a production line for a new generation of Volvo FH trucks at Saipa Diesel west of Tehran... The official said Saipa Diesel is in talks with several reputable companies, including Mercedes Benz and Renault Trucks. 'The signing of a joint venture agreement with Benz for production of light, heavy and trailer trucks as well as buses and minibuses is in the works. Moreover, this reputable company has taken some steps for production of electric buses (in Iran),' Tanhapour said." (Press TV, "Volvo shifts into reverse on Iran sanctions," 5/13/15) 

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“Iranian car manufacturing company Saipa is in talks with France's PSA Peugeot Citroen and Renault, Germany's Mercedes-Benz, and Sweden's Volvo to finalize deals on joint production of cars in Iran, Saipa officials announced on Tuesday… He made the remarks on the sidelines of a ceremony held here in Tehran to unveil the production line of a new Volvo truck in Saipa Diesel factory. Madani also told the Tasnim News Agency that Saipa and Renault are in talks to modify previous contracts, but the details of negotiations have yet to be finalized… Elsewhere in his remarks, Madani announced that the Swedish company Volvo is already providing Saipa with technical support and spare part and that the cooperation will develop in the future. New Volvo trucks named H500, which will begin to be manufactured on Tuesday, are 15% domestically produced, he added.” (Tasnim, "Iran's Saipa Negotiating with European Automakers," 5/12/15)

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"Volvo Group has left the Iranian market. A company spokesman confirmed the authenticity of a letter sent to a U.S. pressure group this week saying it stopped sales of any new equipment in Iran in March 2012, and made a decision in January to stop business with all companies in the country. The question of pulling out of Iran has been an issue under discussion for several years, said Kina Wileke, the company's head of media relations, in an interview. Concerns about the Iranian regime led Volvo to pull out, she added. United Against Nuclear Iran, the U.S. pressure group, sent a letter to Volvo in December calling for the Swedish company to leave the market, accusing it, among other things, of supplying the trucks used by the Iranian government to transport missiles. 'We applaud Volvo AB for this decision,' said Nathan Carleton, a spokesman for the group, in an email. 'Iran's automotive sector serves as a massive source of revenue for the regime, and is integral to Iranian military operations...The situation is now changing, as seven prominent automakers have pulled out of Iran within the past year.'" (The Wall Street Journal, "Volvo Finds Exit Ramp from Iran Market," 2/13/13)

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Vovlo Group is a Swedish manufacturer of trucks, buses and construction equipment. Its units include Volvo Trucks, Mack Trucks, Renault Trucks, UD Trucks, Volvo Construction Equipment and Volvo Buses, among others.

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The construction division of AB Volvo sells wheel loaders, backhoe loaders, excavators, articulated haulers, motor graders, milling equipment, pavers, and compactors in Iran through dealer Parsian Pishro Sanat.

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Listed by U.S. Government as doing business in Iran. (U.S. Securities and Exchange Commission, List of Companies Doing Business With State Sponsors Of Terror, Removed from the internet in July of 2007)

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In 2000, Volvo Truck Corporation entered an agreement for Industrial and Commercial Cooperation with Iran's Saipa Diesel. (Volvo Website, "Volvo in Iran")