News ID : 3776
Publish Date : 03 October 2019 - 09:39
The localization of auto parts is being implemented as contracts enter into the executive phase, which, according to activists, is slow because of lack of anticipated funding from automakers.
Khodrocar_ correspondent, the lack of funds from the automotive industry these days is thinning the industry and pushing for localization projects, which yesterday at a joint meeting between the makers and executives of Iran Khodro Industrial Group, new ways Automotive financing and supply chain reviews.

Arash Mohebbi Nejad, secretary of the Iranian Association of Homogeneous, Driving and Spare Parts Industry Specialists, in an interview with Khodro Reporter, referring to the confidential meeting of Spare Parts Manufacturers with Iran Khodro Industrial Group said subsequently, the supply chain of the automaker's partner was examined and it was decided to examine the joint financial and economic task force of the automaker and the design of the project in order to address the existing problems.

He also added that the association also submitted proposals for financing, while the carmaker and members of the meeting put forward their proposals in the field, all of which were finalized. To solve the financial problems of the activists in this field.

"The main problem with the internalization route is the financial need of the part makers and they need liquidity to do so, while the automaker expects the part with the resources to be 100 percent," Mohebbi-Nejad said. Do it yourself and localize parts in the form of past contracts.

He emphasizing that this also undermines the speed of the operation's progress and the physical condition of the operation, states: In this case, if the carmaker considers a reasonable forecast for the project However, more manufacturers will be interested in getting into this area and are actively working to accelerate the internalization project.

"Along with the help of automakers from government agencies, banks and the Ministry of Health can also come to the aid of manufacturers and consider a plan for internalization, so we are not happy with the pace of work that is being done because of the implementation of the plan. Most of the money is in the hands of the makers, while they are still in financial crisis." He added.

"At that time, the automaker had to pay for the parts, but now it is trying to start internalization in the form of past contracts," says Mohebbi-Nejad, referring to importing parts before the start of domesticization. Under these circumstances, the maker has no incentive to enter the project.
The activist considers blocking the exit of the currency from the benefits of implementing the plan and adds that the implementation of this project will result in a boycott of sanctions against Iran, but nevertheless a special incentive to invest in domestic contracts. There is no fragment maker.

He also said: about parts internalization: Parts that have increased production circulation have dramatically increased production and new parts that have reached mass production include polymer and plastic parts.

We have increased circulation in single pieces already produced but we will need more time for those pieces that have not been produced before.

It seems to be necessary for carmakers this time to reach a definite conclusion in the field of internalization by changing their attitudes toward achieving predetermined goals and making suggestions aimed at encouraging carmakers to invest in automobiles, according to Automaker.
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