The Automotive Industry in Iran: A Critical Analysis
Reintegrating Iran with the West: Challenges and Opportunities
ISBN: 978-1-78441-742-0, eISBN: 978-1-78441-741-3
Publication date: 9 June 2015
Abstract
This chapter explores the opportunities and challenges for Western firms that wish to engage in manufacturing operations in Iran, and particularly in the automotive industry. Although Iran has a long and fruitful history of embracing foreign investment, collaboration with foreign firms suffered in the aftermath of the Islamic Revolution in 1979. The imposition of UN sanctions in 2012, following the disagreements between Iran and leading Western powers over Iran’s nuclear policy, has resulted in a further exodus of foreign manufacturers from Iran, hurting the production quality, adoption of up-to-date technology and alignment to international standards for manufacturing, such as vehicle safety and engine emissions in Iran.
The removal of sanctions, contingent on the success of nuclear negotiations between Iran and leading world powers, could provide Iran with an opportunity to recommence manufacturing collaboration with Western firms. The case of the automotive industry discussed in this chapter indicates some of the challenges that Iran is likely to face if it once again wants to become a player in international markets.
Keywords
Acknowledgements
Acknowledgements
The authors would like to thank Terry Froud, former Chairman of the UK Renault Dealers' Association, and UK delegate for the General Council Renault Europe, for his contributions to the section on retail dealer operations.
Citation
Wilman, M. and Bax, B. (2015), "The Automotive Industry in Iran: A Critical Analysis", Reintegrating Iran with the West: Challenges and Opportunities (International Business and Management, Vol. 31), Emerald Group Publishing Limited, Leeds, pp. 57-74. https://doi.org/10.1108/S1876-066X20150000031009
Publisher
:Emerald Group Publishing Limited
Copyright © 2015 Emerald Group Publishing Limited