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Volkswagen to Halt Operations in Iran: Bloomberg

AFP Relaxnews
The group, whose brands range from luxury Porsche and Audi to the budget-conscious Skoda and Seat, has set itself the ambitious target of offering more than 50 electric models by 2025, up from six today.

Volkswagen has bowed to American pressure stemming from the US rejection of the multi-party nuclear deal and will end almost all business in Iran, Bloomberg News reported. The accord was reached after weeks of talks between the German auto giant and the administration of President Donald Trump, said Richard Grenell, the US Ambassador to Germany, according to Bloomberg.

VW will still be able to do some business in Iran under a humanitarian exception, Bloomberg added. In May, Trump pulled the US out of the deal it reached with Iran and five other countries in 2015. That accord lifted sanctions against Tehran in exchange for restrictions on its nuclear program.

Now, the US is reimposing those sanctions. Bloomberg said VW has scrapped plans it announced in July last year to sell cars in Iran for the first time in 17 years. Volkswagen had recently announced that it would end production of its iconic Beetle cars in 2019.