Toyota suspends auto exports to Iran amid nuke row+

NAGOYA, Aug. 11 Kyodo -
Toyota Motor Corp. has suspended its auto exports to Iran for an indefinite
period amid mounting international pressure on Tehran over its nuclear
development program, company officials said Wednesday.
Japan's top automaker, which halted shipments in June, especially feared that
continuation of car sales to Iran could hurt its business in the U.S. market
given that the United States is spearheading the international efforts through
a variety of sanctions, they said.
The move by the leading Japanese manufacturer might prompt other Japanese
companies to rethink their business dealings with Iran, economists say.
In North America, the largest market for Toyota, the company's business has
been floundering due to the economic slump caused by the banking crisis in
autumn 2008 and massive recalls of its cars over sudden acceleration cases.
Its sales in the region, however, have been picking up lately.
As Iran remains determined to move ahead with its nuclear program, the U.N.
Security Council adopted in June a resolution to slap additional sanctions on
Iran, including extensive asset freezes and travel bans for individuals and
entities involved in nuclear and missile projects.
In early July, Washington signed into law its own sanctions aimed at further
penalizing Iran. Later in the same month, foreign ministers of the European
Union also opted for new sanctions.
Toyota voluntarily ceased exports to Iran although its trade with the country
would probably not have violated the new U.S. law on Iranian sanctions or
entailed restrictions on its activities in the U.S. market.
Toyota shipped vehicles including the four-wheel drive Land Cruiser to Iran via
its trading arm Toyota Tsusho Corp. Sales to the country totaled 3,500 units in
2007, 4,000 units in 2008, 250 units in 2009 and 220 units in the first five
months of this year.
Among other major Japanese manufacturers, Nippon Steel Corp. exports steel
sheets to Iran while consulting with the Ministry of Economy, Trade and
Industry, when deemed necessary, about the security implications of its
dealings with Iran.
JFE Steel Corp. decides whether to sell its products to its Iranian customers
after gathering information about them and the purposes of the purchases. Honda
Motor Co. is said to sell no vehicles to Iran.
==Kyodo
2010-08-11 21:57:27