Many private automakers are now having difficulties because of sanctions and other problems. The solution for this problems is merging which has its own problems for automakers.
Khodrocar - Many small private car makers have lost their jobs due to sanctions. Among the things that are being proposed to improve the condition of these automakers is the issue of integration. An act that has many supporters and opponents. According to some integration experts, while reducing costs, it can lead to joint actions in various areas of production, design and marketing. But some also believe that the current state of the automobile industry is not conducive to a new experience called automobile integration and that it needs government incentives. But by examining the history of the world auto industry and the way companies have taken to survive and deal with losses, we can clearly see the integration of the mergers into the world-leading automotive industry."For sure if car makers of private sector decide to merge then their costs will decrease. For example instead of having 5 sale manger they would have only one and it will happen in other sections too." Ahmad Nemat Bakhsh, secretary of automakers association told khodrocar reporter.
"The solution to this and the integration of small private car makers is for the government to consider incentives. Because each of these companies has their own management system and method, and if they are to be merged they have to come up with some of their demands." He continued.
"A major objection to the increase in the number of private-sector automobiles is the Ministry of Commerce, which has easily authorized these companies. It should not, however, permit a company to run less than 200,000 passenger cars. This is even more pronounced in the truck manufacturing sector and there are a large number of truck manufacturers in the country." He added.
"However, if the automakers combine the private sector and produce their own products together, it is economically more profitable for these companies. On the one hand, high circulation certainly reduces the cost of running, and in this case, the construction of the interior also makes sense." He said.
"While the production rate is low then producing parts in the country is not economical so they have to supply their demands from importing parts." He said.
"In recent years, there has been a lot of groundless licensing to create automobiles to compete in the market. There are about 30 car makers in the country. With the exception of the country's two largest car makers and the remaining two medium-sized car makers, all are unemployed. But countries like Germany with three carmakers and France with two carmakers are advancing their country's car industry." Amir Hossein Kakaei, expert of auto industry told khodrocar reporter.
"In this situation, small private car makers must either merge or declare bankruptcy, as bankruptcy can prevent further damage. But this is a taboo in Iran. While the automobile industry has gone through many crises, but to date none of these companies have declared bankruptcy." He said.
"On the one hand, the word merger in Iran is also legally troubled. Either it has to buy another company or a third company to buy both companies and it does not make sense to merge legally in Iran. But in the advanced world of mergers, they have come up with the right tax, legal and insurance solutions because the merging strategy is a defensive strategy against rising costs and economic crises but Iran is legally weak in this regard." He said.
The benefits of mergers for the automotive industry are self-evident, and it has become the current policy of global automakers to see the greed and loss of companies from other companies for the sake of owning and enhancing their subsidiaries, which can rightly be The approach, he said, will ultimately benefit bankrupt companies and keep them afloat.
It is worthwhile to wait and see, then, what the decision of the Twelfth Government will be on issues such as integration and whether Iran, like other countries, can benefit from the option of having the world-renowned mandatory success of the automotive industry.
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