News ID : 3853
Publish Date : 18 December 2019 - 09:39
Removal of Iran Khodro and Saipa shares in the car reorganization plan while approved by the Guardian Council, members of the Mines and Industries Commission believe the envisaged approvals in the plan will not help the car industry.
Khodrocar - Yesterday, however, the House of Representatives removed the objections to the plan to regulate the car market and finalized it, which stipulates that the plan is inconsistent with current industry conditions, including the provision of competitiveness for the car industry. Instead of ceding shares to automakers.

Experience in the automotive industry over the past years has shown that competitiveness has no place in the industry, and in a boycott it is just like an un-expert comment. On the other hand, the emphasis on the fact that car companies' shares are no longer divisible because by law it should be owned by the state with up to 20% of the corporate and parent companies, also shows that the plan has gone beyond its original objectives and in practice it has become a trivial scheme.

"Currently the government's share of the auto industry is less than 20%, and the rest is in a form that allows for government intervention such as the Steel Pension Fund, employee cooperatives and the like.” Fereydon Ahmadi, second deputy of industry and mine commission of the parliament said.

"The downside is that we have to privatize the rest of the stock completely because the pension funds are government-owned, the fund managers are not allowed to operate, and the selection of the board of directors and the CEOs of the carmakers is also governed by government orders.” He said.

"Nowhere in the world will any entity with less than 20% stake be allowed to appoint a CEO, but since the shadow of government is always on the shares of these companies, we see interference in all things, including the election of a CEO. These companies will be governed by the law of the business.” Ahmadi said.

"As long as there are issues like sanctions in the Iranian economy, especially in the automotive sector, there will be no possibility of a competitive economy because there are no competitors and foreign investors entering the country in the current situation and on the other hand importing raw materials for production. Competition is not easily possible.” He continued.

"The car market plan is for ordinary situations, and since our parliament is not a specialized parliament, some of the decisions it makes are influenced by the mental space, but what is clear is the carelessness of the car market plan.” He mentioned.

These statements indicate that the approval of the noisy plan of car market regulation, which has been endorsed by the Guardian Council after numerous trips and numerous reforms, is far from any expert work and may only be approved by the Council. Demonstrate the abilities of the 10th parliment. Now it must be seen how far this project can be the node of this burgeoning industry, as there are no other legal requirements for its implementation.

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