Financial Tribune- French carmaker and owner of Peugeot brand PSA Group said on Wednesday that it hoped the European Union would adopt a common position on Iran, following US President Donald Trump’s decision to pull the country out of the nuclear deal with Iran.

“Like other economic players, we are following the evolution of the matter, and are also following the EU’s official position on this topic,” said a spokesman for PSA, adding that the group hoped the EU’s position regarding Iran would be a “singular” one, Reuters reported.

Major PSA brands Peugeot and Citroen respectively have forged joint venture agreements with Iran’s largest carmakers Iran Khodro and SAIPA. PSA Group’s arch-rival Renault also has strong ties with Iran.

Trump on Tuesday pulled the United States out of an international nuclear deal with Iran, upsetting European allies and casting uncertainty over global oil supplies.

France has sought to deepen trade ties since sanctions against Iran were eased under the 2015 nuclear deal. Major French companies doing business with Iran in addition to the carmakers are oil major Total and Airbus.

Volatile Situation

Shares in major French companies with business ties to Iran, including carmaker PSA and plane manufacturer Airbus, fell on Wednesday after Trump withdrew the US from the accord.

PSA shares were down 1.5% in early session trading, while rival carmaker Renault declined by 0.3%.

Airbus fell 1.1%, although shares in oil group Total—which also does business in Iran—rose 0.7% as oil prices rose following Trump’s announcement.

Status Quo

During the past fiscal, which ended in March, 603,747 vehicles carrying the emblem of Renault and Peugeot were produced in Iran.

Three Peugeot models are made in Iran namely 2008, 206, 405. Cars carrying Peugeot’s badge have a 31% share in Iranian carmakers total output.

Renault Logan (locally better known as L90 or Tondar 90) along with Sandero have a 10.8% share of the market with 156,743 units of the two models manufactured in Iran during the one-year period.

Together French carmakers present in Iran have a 41.8% share of the industry’s total output.

Three Contracts

Group PSA’s Peugeot and Citroen have signed two separate joint venture deals with two main Iranian car companies, IKCO and SAIPA.

IKCO and Peugeot signed a €400-million deal in June 2016. Through the 50-50 joint venture, known as Iran Khodro Automobiles Peugeot (IKAP), three models, namely Peugeot 208, 2008 and 301, will be produced in Iran. IKCO currently assembles three Peugeot models namely 405, 206 and 2008.

SAIPA-Citroen joint production deal forged in July 2016 obliges the Paris-based carmaker to invest €300 million in Iran over five years for the development and production of three models.

Production lines of the 2008 were officially launched in May 2017. SAIPA also started a test assembly of the Citroen C3 in January.

Renault signed a €660-million trilateral production deal with Industrial Development and Renovation Organization of Iran and local private company Negin Khodro last August.

Three Renault models, namely Kwid, Duster and Symbol, are to be produced in Iran under the deal. It is reported that the first Kwids should be in the market by late 2018. Currently, Renault Logan and Sandero are produced by IKCO and SAIPA.