The big global news of late is a deal that sees a number of major powers easing some sanctions on Iran in return for the Middle Eastern nation scaling back its nuclear program. This thawing of relations between Iran and the West could have far-reaching impacts in both the near and long term, particularly on the auto industry.

As Bloomberg points out, foreign manufacturers, especially Kia and Peugeot, stand to win big by this short-term easing of sanctions. But the impact of opening up the Iranian market to larger-scale sales cannot be underestimated - Peugeot, for example, sold 457,900 units to Iran in 2011 as spare parts kits alone. Opening the Iranian market could also have a huge impact on the cost of oil, as the country was one of the largest producers in the OPEC consortium before firmer sanctions took effect in 2012. Still, as David Cohen, US undersecretary for terrorism and financial intelligence said, it's "not open season now for business in Iran."

Bloomberg has an excellent report of all the near-term effects an easing of sanctions has across a number of industries. Hop over and give it a look.


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    • 1 Second Ago
  • 20 Comments
      Philip Gose
      • 1 Year Ago
      The important thing is now Large U.S. Corporations can now make money off of Iran again. We can sell them Automobiles, tractors, Grains, and etc. They can sell us their oil. Heck, maybe GE can sell them Nuclear Reactor equipment or maybe T Boone Pickens can sell them wind farms. And don't forget Iran produces a lot of Pistachios, so maybe the prices on those will come down now. That is my personal hope!
      Steve
      • 1 Year Ago
      Don't forget about Nissan and Renault,,, these companies also are affiliated with Pars Khodro in Iran.
        Steve
        • 1 Year Ago
        @Steve
        This will also benefit the Iranian auto industry since Iran Khodro is the largest automaker in Middle East.
      alip
      • 1 Year Ago
      You could use a better picture of cars in iran on the cover! As the picture says something else and its not relevent to cars
      Renaurd
      • 1 Year Ago
      Just saw where oil prices dropped, that's good news.
      MTU 5.0
      • 1 Year Ago
      They are about to get a nuclear bomb and further terrorize the region, but hey, at least a few automakers will make out big. Yeah, great tradeoff.
        linuxaddict7
        • 1 Year Ago
        @MTU 5.0
        Dude.. They won't enrich weapon grade uranium and handover the already ones. Iran economy is in pretty bad shape. Iran basically surrendered.
      Gorgenapper
      • 1 Year Ago
      I'm not much for politics, but even I can see that Iran is just paying lip service to the concept of scaling back its nuclear program. Does anybody actually buy this B.S.?
      TooManyCars
      • 1 Year Ago
      Well, clearly we, the U.S, won the negotiations with Iran. I'm sure our negotiators told Iransomething along the line of: "If you like your uranium enrichment program, you can keep it.... Period..." And we know how that will turn out....
      William Flesher
      • 1 Year Ago
      This is one of those politically charged, complicated and delicate stories that I've never felt comfortable reading about or discussing on Autoblog. When out and out flame wars devolve into personal threats over a story about the gestation of the Acura NSX, I'll get my information and commentary from the many globally respected websites that specialize in such topics. From Fox to Al Jazeera, there are far better sources than Autoblog to discuss global politics. Thanks, but no thanks.
      NeO
      • 1 Year Ago
      LOL seriously?! in 6 months-1 year they will have the capability to produce nuclear weapon material. Israel will attack. Who in the f**** cares how it affects the auto industry, we will all be either dead or under obamacare lock N key...
      JIM J
      • 1 Year Ago
      "scaling back its nuclear program. This thawing of relations between Iran and the West could have far-reaching impacts in both the near and long term" Good one. Someone must have switched your meds to a placebo. Time for another Rx.
      libertedelacroix
      • 1 Year Ago
      The importance of the thawing of relations is not significant because of economic implications (or the profit automakers stand to make for that matter...), but because it could change the tone of hostile rhetoric that if left unchecked, could potentially lead to WWIII. But thanks for bringing perspective autoblog.
      RocketRed
      • 1 Year Ago
      The Iran car market is not closed to car sales (except to U.S. producers). The post is off. Recent new rules have implemented "secondary sanctions" against non-U.S. companies that build cars in Iran, directly or via knock down kits, or supply parts for production, etc. But foreign producers can, and very much do, sell finished cars to Iran. For U.S. producers, the potential sales are not insignficant. Iran is a big country that has signficant potential consumer purchasing power. But it will a long time from now before GM is selling cars in Iran.
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