Banks no longer lend to auto parts manufacturers / we have no choice but to buy expensive cars
Online Economy – جواد هاشمی; BAccording to some estimates, the amount of debts and losses of automakers has reached 200,000 billion tomans and their operating losses at current rates have made it even impossible for them to manage current expenses.
With increasing financial pressures on automakers, they have not been able to repay bank loans, nor have debts to parts manufacturers been managed over the years. Therefore, parts manufacturers are facing liquidity problems, and the continuation of these conditions carries the risk of not supplying parts for production lines and reducing the annual production of the car.
Although it was announced about two weeks ago that Iran Khodro and Saipa had agreed to increase the prices of their products, a few days later, by order of the President, this action was stopped so that the fate of car prices would remain in a state of ambiguity. Amir Hossein Jalali – Vice President of the Tehran Parts Manufacturers Association – in an interview with Eqtesad Online, says that although the return of car prices to current rates has negative consequences, there are rumors that plans to get out of the current situation are being pursued and many decision makers They have come to the conclusion that changes must be made in the current situation.
He said that the increase in prices and its decrease again, shows the change of opinion of some decision makers, he said: although in recent days, the view of those who were in favor of maintaining prices prevailed, but it seems in the government, the number of people who have reached this conclusion That prices must change and that the country’s auto industry can no longer be expected to survive in its current state has increased, indicating that new changes can be hoped for in the future.
According to the vice president of the Tehran Parts Manufacturers Association, although there is no definite news at the moment, it has been heard that work on the automotive industry is continuing among various devices, and this work will probably have a definite outcome in the future. Therefore, publishing news such as Minister Samat’s opposition to the increase in car prices is a one-sided view and probably does not tell the whole truth.
“According to the logic of economics, one cannot expect a variable price at input to lead to a fixed rate at output,” Jalali said. “Automakers today receive raw materials and parts they receive from different sources at different rates.” In such a context, one cannot expect all these purchases and prices to lead to a fixed rate in the sale of automakers’ products. Ignoring this fact has led to an orderly pricing that has put a lot of pressure on automakers and component makers today.
Emphasizing that reforming the prices of parts manufacturers and increasing the prices of cars is the only way left, he said: “The reality is that when it comes to this, we no longer have an easy option and we have to make tough decisions.” If the conditions of the automotive industry were to remain favorable at current rates, we would certainly not be facing this amount of accumulated debt and losses today.
The vice president of the Tehran Parts Manufacturers Association called the liquidity crisis one of the main problems of automakers and parts manufacturers today and said: Parts manufacturers basically have two sources of financing: car manufacturers and the banking network. An examination of the performance of automakers in recent years shows that not only has it not been possible to pay the current claims of auto parts manufacturers, but even their debts have been accumulated and deferred.
Jalali continued: “During these years, parts manufacturers have gone to the banking network to compensate for this overdue demand and have provided their liquidity through bank loans, but in recent months, many banks have provided facilities for component manufacturers, and in such circumstances, in practice It has become difficult to obtain new facilities in the country’s banks.
He stressed that if the needs of parts manufacturers are not met, the production of parts for the country’s production lines will be difficult: However, parts manufacturers have made every effort in these years to move with car manufacturers and lines to meet their needs. Maintain their production, but according to the practice of recent years, it is difficult to continue the work, and if the production lines face problems, it will not be possible to achieve major goals in this area.
The vice-president of the Tehran Parts Manufacturers Association pointed out: “Putting all these conditions together, it seems that the decision-making bodies have reached an important crossroads, and in order to overcome these conditions, they have to make difficult decisions.” We have heard that work has begun on the same decisions, and even if at some point, the increase in car prices is opposed, the government will conclude with further investigation that there is no choice but to increase prices and if production is to continue production. , Must state their position in this regard. Parts manufacturers can not comment on behalf of automakers, but what we can say on our own is that it has become very difficult to provide liquidity, and if no solution is found for this situation, in the future the country’s car production and domestic needs will be difficult. And if encountered.
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