Auto industry thirsty for liquidity/ market and automakers affected by politics changes

Khodrocar – the price for incomplete cars in parking of 2 major automakers is increasing and ministry of industry is showing some solutions to change the policy of automakers. 

Experts believe that priority of production and supplying incomplete cars to commercialize them fast is a logical policy in current situation to supply the liquidity of automakers and part makers. 

"By paying the facility to the makers and updating the claims process, we will no longer see cars in the depot warehouse of automakers, and customers will be able to get their cars sooner by commercializing their cars and providing cash in circulation and improving their cash flow.” Vali Maleki, speaker of industry and mine commission of the parliament. 

These comments and thoughts are being made while some believe that the car has been set to a predetermined purpose, and in this case, the question arises when the cash generated from the completion of about 200,000 incomplete cars, including the price of 400 million IRRs can be a huge number for automakers and help them pay off debts and debt, what is the need for this action?

"Since the managers of the industry are elected by the government, they can’t, therefore, take steps to implement their own ideas in automobile units.” Mohammad Taqi Ahmadian, expert of auto industry told khodrocar reporter. 

"The possibility of such a situation exists in private companies, but managers will certainly seek to supply the car with the aim of breaking the price bubbles in the market to meet shortfalls through the domestic market and see a quick return on capital.” He added. 

"Changing the policy of the Ministry of Industry in the field of automobile production and prioritizing the completion of cars rather than the production of incomplete vehicles in a situation that we should always seek to market for the automaker and not to ruin the market with the arrival of foreign cars, such as the Chinese, and at the same time To complete incomplete cars.” He said. 

"Carmakers have to work alongside incomplete cars to produce more, but at the same time they can sell cars at the bottom of the plant because of their high shelf life at a lower price. In this situation, they also have to take liquidity and at the same time Control the market with their products.” He said. 

These statements are being made while many believe that car makers should stop the production of an incomplete car and shift their plans to complete incomplete vehicles. While the production line's stop will also have its own detrimental effects, the policy of the Ministry of Industry may not change in the car industry to pay more attention to completing cars rather than producing more flawed vehicles.