$1 billion to save IKCO

Iran Materials 29 July 2009 13:58 (UTC +04:00)

Iranian carmaker Iran Khodro Company (IKCO) is currently suffering a liquidity crisis and the Money and Credit Council has agreed to extend a 10 trillion rials (about $1 billion) credit to help the troubled automaker out of the crisis.

Selling assets and offering stock exchange bonds are other options that IKCO has decided to carry out as part of its recovery plan, the Mehr News Agency reported.

Currently IKCO, the Middle East's largest automaker, stocks have lost their appeal in the Tehran Stock Exchange.

Meanwhile, the other giant Iranian carmaker the Saipa Group, with an 18 percent increase in sales last Iranian calendar year (ended March 2009) held the first place among Iranian car manufacturers.

IRNA reported on Tuesday that with a 17.5 percent yield the Saipa Group has had the most profitable stocks in the bourse market. The group has also shown a significant improvement in the quality of its products.

The report added that despite the global economic downturn, the Saipa Group has managed to find new export destinations in the competitive automotive markets by offering products with competitive prices and reliable after sales services.