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New chapter in automotive industry of Iran, car imports still banned

Business Materials 4 September 2019 13:59 (UTC +04:00)

Tehran, Iran, Sep.4

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Changes in management of Iran Khodro have been made with the aim of starting a new chapter in the automotive industry of the country, the Iranian Minister of Industry, Mine and Trade said.

"The board of directors of the group supported the government's decision on the issue of changing the CEO of Iran Khodro,” Reza Rahmani told reporters on the sidelines of a Cabinet meeting on September 4, Trend reports citing ILNA.

Days after accusations of large-scale corruption in Iran’s car industry, CEO of Iran Khodro Hashen Yekke Zare was arrested in his office after being fired.

Iran Khodro is one of the biggest vehicle manufacturers in Iran partnering with the French conglomerate PSA Peugeot Citroen. The reason for firing and then arresting Hashen Yekke Zare’e on September 2 has not been announced. He was leading the company for the past seven years.

The minister commented on the latest situation of imported cars. “Imports of cars are still banned,” said Rahmani.

“Cars that entered into customs before the ban could be cleared, if they do not fell under restrictions, such as being an American vehicle, having the engine volume above 2500 cc, and some other technical requirements,” he added.

Rahmani noted that so far, nearly 13,000 of the imported cars have been cleared from the customs, but the other cars will remain in customs due to a court order or other legal barriers.

The Minister of Industry, Mining and Trade said that a proposal has been approved by the government to reduce the commercial profits of some commodities such as cereals and tea, to zero.

“This step aims to reduce the price of the commodities in order to affect the price of these items in the near future.”

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