Volkswagen has bowed to American pressure stemming from the US rejection of the nuclear deal and will end almost all business in Iran, Bloomberg News reported Wednesday, citing a US official who led the discussions with the carmaker.
The accord was reached Tuesday after weeks of talks between the German auto giant based in Wolfsburg 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 nuclear agreement 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.
The White House was not immediately available for comment on the Bloomberg report.
But a spokesman for the carmaker told AFP it was sticking to its long-standing position that it "obeys all national and international laws as well as export regulations".
"We are also taking into account possible effects related to the reintroduction of US sanctions," he added.
