Breaking News
0

VW rejects Trump envoy's take on Iran pullout

Stock MarketsSep 20, 2018 10:47AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Car manufacturers display their wares on the show floor of the North American International Auto Show in Detroit

(Reuters) - Carmaker Volkswagen AG (DE:VOWG_p) rejected on Thursday a report suggesting it had decided against doing business in Iran after coming under pressure from Donald Trump's ambassador to Germany, saying its position on the country had not changed.

U.S. sanctions against Iran, introduced by President Trump after his decision to pull the United States out of the Iran nuclear deal, have forced companies in Germany and across Europe to reconsider their investments there.

Ambassador Richard Grenell has appeared to take credit for this shift in a series of tweets and interviews over the past weeks, announcing the withdrawal of German blue chips like Siemens (DE:SIEGn), BASF (DE:BASFn) and now Volkswagen, to the surprise of the companies themselves.

A Bloomberg News story on Thursday, quoting Grenell, said he had led talks with Volkswagen over the past weeks, hammering out the final details of its new Iran stance on Tuesday.

However, a company source said there had been no talks with Grenell on Iran. And a VW spokesman told Reuters that the company's position had not changed in recent weeks.

Asked about the VW response, U.S. embassy spokeswoman Christina Higgins said: "The U.S. ambassador has been speaking for quite some time to CEOs and industry leaders urging that they comply with U.S. sanctions."

VW has no major investments in Iran, although it had been considering establishing a sales network for imported cars. Its Spanish division Seat announced last year that it had abandoned exploratory plans to enter Iran.

Grenell, a former U.S. spokesman at the United Nations and outspoken defender of Trump, has ruffled feathers since arriving in Germany in May.

Within hours of landing he sent a tweet warning German firms to halt all activities in Iran. Weeks later he drew fire from German politicians for telling right-wing website Breitbart News that he wanted to empower "other conservatives" in Europe.

His remarks on Thursday about Volkswagen's Iran plans triggered more criticism.

Bijan Djir-Sarai, foreign policy spokesman for the business-friendly Free Democrats (FDP) in parliament, said it was ridiculous to think that German companies would make decisions based on pressure from the U.S. ambassador.

"The policies coming out of Washington are having an impact. But this has nothing to do with the ambassador," he said, urging Grenell to be more careful in his choice of words.

"The German and European economies are strong. We don't need to take orders as if we were an occupied zone."

VW rejects Trump envoy's take on Iran pullout
 

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email