TEHRAN, Iran, March 10
Trend:
Iran's main auto maker Iran Khodro company has paid around $309 million advances from its $595 million shares to auto part makers, said the head of Iranian Automotive Parts Manufacturers Association.
"Although the Central Bank of Iran has issued a corresponding announcement, no advances were paid to auto makers from SAIPA so far, and even if the money is being paid now, the work will be halted for three weeks," said Mohammad Reza Najafimanesh, Trend reports citing IRNA.
"Auto part makers need help to produce and provide necessary spare parts, equipment and basic materials; the auto production in last month reduced, and it will further decrease this month, if the automakers do not pay the advances to auto part makers," Najafimanesh said.
"Coronavirus issue is only a pretext for the payment delays, since the advances were not paid even before the outbreak," he added. "SAIPA has obtained $95 million from banks but so far it has not paid anything to auto part makers."
Iranian government has approved a regulation to inject $2.3 billion to auto industry, while the parliament industrial committee has called for providing $1.1 billion to auto makers.
Iran's Money and Credit Council has approved assignment of $1.6 billion to Iran Khodro and SAIPA, while these auto makers should provide $595 million bank advances to auto part makers and sell the remaining $476 million in form of bonds to attract more investment.
Iran's auto part makers face various problems including sanctions, as Iran's is blacklisted by FATF; meanwhile, the increase of production by the two automakers have emptied the auto part makers storehouses.
"Even if the advances are paid today, it would take 25 days to provide raw material and equipment for production of auto parts," Najafimanesh said.