UANI Calls on GM to Explain Partnerships with France's Peugeot and Belarus's Unison
Both GM Partners are Reportedly Active in Iran's Automotive Sector, Which is Sanctioned by New Presidential Executive Order
New York, NY - On Wednesday,
United Against Nuclear Iran (UANI) called on the General Motors Company (GM) to explain its partnerships with automakers Peugeot and Unison, both of which have significant business activities with the Iranian regime. The new presidential Executive Order 13645, which went into effect on Monday, July 1, authorizes sanctions on entities engaged in Iran's automotive sector.
GM has failed to adequately respond to overwhelming evidence which demonstrates that Peugeot continues to do business in Iran. GM has claimed to UANI that Peugeot is out of Iran, however
Iranian auto figures show that 203,639 Peugeot-branded vehicles were produced there during the past year.
UANI is also concerned that GM recently announced a new partnership with Unison, a Belarus-based auto manufacturer that is reportedly partially owned by the Iranian regime-owned automaker Iran Khodro (IKCO) and operates as a primary manufacturer and reseller of IKCO models in Belarus.
GM has stated that its agreement with Unison will produce 4,000 to 7,000 vehicles annually, and include the transfer of advanced industrial manufacturing techniques used in GM factories to Unison. UANI is highly concerned with this partnership, as the Iranian regime is notorious for using its connections with Western industrial firms to acquire the advanced technologies necessary to sustain its manufacturing and industrial capacity.
In a letter to GM Chairman & CEO Daniel F. Ackerson, UANI CEO, Ambassador Mark D. Wallace, wrote:
... GM has consistently relied on representations from Peugeot that the latter is "not doing business in or with Iran." Specifically, in a March 7, 2013 letter to UANI, GM asserted that "Peugeot represented to us that Peugeot and its affiliates have suspended their activities in Iran and do not intend to, and will not, engage in any activity in or with Iran, or with any Iranian entity..."
... in April 2013 the Iranian Vehicle Manufacturers Association ("IVMA") released production statistics for Peugeot-branded vehicles produced by IKCO. According to the IVMA, a total of 203,639 Peugeot-branded vehicles were produced during the Persian calendar year 1391 that ended March 20, 2013, and an additional 14,984 units have been manufactured thus far in the year 1392. More recent reports confirmed ongoing production of Peugeot vehicles in Iran, and pegged Peugeot's past involvement with IKCO as worth over €1.1 billion. The foregoing directly contradicts GM's statements that its partner Peugeot has ended its ties to Iran. ...
UANI is also concerned by reports that GM is entering a lucrative business alliance with the Belarus-based automaker, Unison. Unison is reportedly partially owned by IKCO and operates as a primary manufacturer and reseller of IKCO models in Belarus. On June 13, 2013, GM publicly announced that it had entered into a manufacturing agreement with Unison that will produce 4,000 to 7,000 vehicles annually. Furthermore, the GM-Unison agreement reportedly includes the transfer of advanced industrial manufacturing techniques used in GM factories to Unison. As you should know, the Iranian regime is notorious for using international trade and financial markets, and specifically its connections with Western industrial firms, to acquire the advanced technologies necessary to sustain its manufacturing and industrial capacity. Unison's production of IKCO vehicles in Belarus - including its production of models based on Peugeot platforms - is therefore extremely concerning to UANI. Specifically, UANI is concerned by the prospect of IKCO taking advantage of its partnership with Unison, and access to Unison manufacturing facilities in Belarus, to acquire much needed technology and expertise for its domestic auto industry, including technology and expertise from Unison's other partner, GM.
GM should also be aware of recently enacted sanctions that appear to cover the activities of GM and its partners Peugeot and Unison. Specifically, Executive Order 13645 ("E.O. 13645"), authorizes sanctions on entities "knowingly engaged in a significant transaction for the sale, supply, or transfer to Iran of significant goods or services used in connection with the automotive sector of Iran.
" (Federal Register:
E.O. 13645) E.O. 13645 went into effect
on Monday, July 1, 2013. In light of reports of IKCO's partial ownership of Unison as well as its access to Unison manufacturing facilities, GM's reported plans to transfer manufacturing techniques to Unison could constitute a significant transfer to Iran of "goods or services used in connection with the automotive sector of Iran" and therefore a violation of U.S. sanctions. The continued production of Peugeot vehicles in Iran also appears to constitute a violation of E.O. 13645. Notwithstanding the potential legal ramifications for GM and its partners, it is simply unacceptable for GM to enter into partnerships with entities such as Peugeot and Unison that have significant business activities with the Iranian regime, especially in light of GM's lucrative leading position in the U.S. auto market, extensive U.S. government contracts, and receipt of a taxpayer-funded $50 billion bailout of GM by the U.S. government in 2008-2009. ...
On June 13, 2012, the
Detroit News published an Op-Ed by Ambassador Wallace,
"Why is U.S.-owned GM partnering with company that does business with Iran?" "The GM-Peugeot partnership seems to run afoul of U.S. sanctions," wrote Ambassador Wallace, "and it should be investigated." He called on GM and Peugeot "to take the responsible action of evaluating Peugeot's business in Iran, and putting a complete and final end to it."
Last year, Ambassador Wallace
testified about Iran's automotive industry before the U.S. House Foreign Affairs Committee. Ambassador Wallace stated to Congress that: "Peugeot right now is a major actor in Iran, a major manufacturer inside Iran in direct partnership with the IRGC."
UANI has developed model legislation, the
DRIVE Act, to force auto manufacturers to choose between American taxpayers and the regime. The DRIVE Act requires automakers to certify they are not engaged in any business in Iran, or engaged in the implementation of any agreement with Iranian entities in order to be eligible for U.S. government contracts or financial assistance.
UANI has requested a reply from GM by July 10, 2013.
Click
here to read UANI's full letter to GM.
Click
here to send a message to Peugeot and GM.
Click
here to read Ambassador Wallace's
Detroit News Op-Ed, "Why is U.S.-owned GM partnering with company that does business with Iran?"
Click
here to read the
Daily Caller Op-Ed by UANI CEO, Ambassador Mark D. Wallace, and Congressman Tim Griffin: "The US can do more to pressure auto companies to sever ties with Iran."
Click
here to visit UANI's Auto Campaign page.
Click
here to read UANI's DRIVE Act legislation.
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