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Iranian MP: Major vehicle manufacturers facing bankruptcy

Iran Khodro and Saipa, two major Iranian vehicle manufacturers
Iran Khodro and Saipa, two major Iranian vehicle manufacturers

Analysis by PMOI/MEK

 

Iran, July 6, 2019 - Iran Khodro and Saipa, two major Iranian vehicle manufacturers, are on the verge of bankruptcy, Mohammad Reza Mansouri, member of the Majlis (parliament), said on Friday.

Speaking to state-run ISNA news agency, Mansouri said, "The vehicle manufacturers are on a downturn. Given the great debts that these companies have and the extravagant support they've received, we can't expect them to have a positive future."

Referring to the great benefits that government executives have received from neglecting the consequences of privatizing public companies, Mansouri said, "Anyways, a situation has developed and government executives don't want to miss the opportunity. This situation has given many people a position of power and respect. They are willing to set up a complex in some foreign country to sell vehicle product, which has no benefit [for the country], or they will set up a branch that has causes more damage than benefit."

In the past years, government officials and institutions have "privatized" many of the country's critical assets and companies, forfeiting them to "private owners" that have strong ties to the regime. These persons have made huge wealth from this process, but in most cases, the company itself, its employees and its customers have suffered immensely. The corruption of state-linked company owners has triggered many protests by workers and labor activists in the past year.

 

 

 

In recent months, the customers of Iran Khodro and Saipa have been regularly protesting to the company's practice of pre-selling its cars at discounted prices and then reneging on its promises and demanding them to pay the price in full.

Regarding the prospect of the bankruptcy of the vehicle manufacturers, Mansouri said, "They sold their vehicles at prices that are several-fold of global car prices, and they incurred losses, especially during the period where the borders are closed and they have no competitors. I believe that any government system that is managed in this way is doomed to go bankrupt."

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