Parts makers' concern over sudden increase in car production rate/ delay flights made problem for part makers

Khodrocar - The conversion of the automotive currency facility to credit as well as the rial facility these days has raised hopes for increased production, but concerns over the shortage of parts and raw materials and the long ordering times are one of the challenges that the auto industry faces.

Activists in the area argue that by announcing a plan to increase production circulation, automakers should make fair payments to designated sources of funding, as well as a plan to increase production to segment industry activists so that the increase in production will not cause trouble. But at the same time, anticipation of the facility and its adoption has provided better conditions for the makers.

"The request of the automotive and automobile industry activists last year was about 15 trillion tomans after approval.  It was reduced to 11 trillion rials, of which 4 trillion rials was allocated in March." Maziar Bigloo, secretary of the Iranian Automobile Manufacturers Association told khodrocar reporter.

"Accordingly, the remaining 7,000 billion toman (EUR 840 million) was ordered to be paid in foreign currency, but this payment was not made due to problems in the technical and payment mechanism.  The Committee on Industries and Mines, the Monetary and Credit Council and the Central Bank, converted EUR 844 million into rial surplus.

"Accordingly, 5 billion Toman will be paid in the form of a credit limit.  However, while 4 billion USD was paid in the form of bank facilities, the credit ceiling of both automakers increased to 5 billion USD, which can be obtained by both the automaker and the facility.  This should be in the form of bank guarantees and the like." he said. 

 He also referred to the joint meeting of the board of directors of Iran Khodro with members of the board of directors of the carmakers' associationand said: "At this meeting the carmakers were concerned about the lack of liquidity and the increase of the circulation because the increase of the circulation suddenly caused problems.  This is because the inventory on the way is running out and needs to be liquidated first and then ordered."

 Bigloo cited the increased engagement of Iran Khodro and Saipa as part of the Association of Manufacturers and continued this interaction with other topics of the meeting.  Sapco company defines a formula and allocates funds accordingly.

 Concerning the delay of foreign flights, the secretary of the Parcels Association said at the end that the delay and delayed flights had a negative impact on the carriers and that the airlines refused to accept cargo as well as passengers.  Parts have been on the road for less than a few months, and some parts makers have been supplying their parts daily and in the air, causing the flight cancellations to be a problem we hope to see after 10 days.  And continue to fly, according to airlines.