French car manufacturer PSA Group said it would pull out of its joint venture activities in Iran to avoid sanctions that the U.S. intends to renew following its withdrawal from the Iran nuclear deal, Reuters reported.
"The group has begun to suspend its joint venture activities, to comply with U.S. law by Aug. 6," PSA said in a statement.
The automaker reportedly said that its Iranian activities accounted for less than 1% of its revenue. The decision to suspend its Iranian activities does not change the company's financial guidance, PSA added.
"With the support of the French government, the Groupe PSA is engaging with the U.S. authorities to consider a waiver," PSA reportedly said.
Large French companies operating in Iran, including Total SA, are trying to obtain exemptions from the sanctions, according to the report.
PSA has agreed to production deals worth €700 million, while Renault, PSA's rival, planned a new plant investment to raise its production capacity to 350,000 vehicles per year.
