- Apr 21, 2006
Iran grinds Renault joint-venture to a halt
Iran is putting a crimp in Renault's plans. The French automaker had teamed up with the nation as part of a joint-venture to build the bare-bones Logan (L90), but now finds itself in a bind as authorities in Tehran have nixed the plan, apparently over a disagreement over the export futures of the car.
Renault has pledged to work with the Iranian government to resolve the problems, as some $800-million worth of contracts with local firms hang in the balance, but the future of the vehicle and the jobs involved in its creation are unclear.
In a time where Iran is under increasing pressure from the rest of the world to come clean about its nuclear efforts, this development threatens to further harm the controversial country's standing in global commerce circles.
[Sources: Motoring.co.za; Renault]