Iranian Auto Part Manufacturers Association suggests privatization of auto industry
TEHRAN, Iran, Aug. 13
The secretary of Iranian Auto Part Manufacturers Association announced the increase in the number of defective cars stored on the parking lot of two major automakers in the country to 150,000 units.
“The contracts of the parts manufacturers with the car manufacturers have not been amended so far,” Arash Mohebi-Nejad during a meeting with members of the Parliamentary Committee of Industries, Trend reports citing IRNA.
"According to the technical calculations, we need to increase the price of parts by at least 65 percent,” he said adding that it means that now every part that is delivering to the car manufacturer is 65-percent below the real price.
"We now expect automakers to offer their shares at stock exchange or sell their non-productive assets to pay off their debts to auto parts producers," Mohebi-Nejad said.
He added that $3.5 billion a year is needed to produce cars and $500 million is required to manufacture spare parts, while more than $3 billion are expected to be saved via domestic production.
Referring to lack of foreign currency reserves amid US sanctions, the official stressed that in this situation, localization of the production is the main solution.
He stressed the need for the private sector to invest in the car industry.
“The way to save the automotive industry is to hand it over to the private sector,” he said.