The list of properties of Iran, Khodro and Saipa was published
According to Tejarat News, two companies, Iran Khodro and Saipa, revealed the details of the land and buildings under their ownership on the Cadal Bourse website. In the list submitted to the stock exchange organization, buildings and lands with industrial, welfare, residential, agency and commercial uses can be seen. In this list, the total cost of Saipa land and buildings is estimated at 2,700 billion Tomans and the total cost of Iran-Khodro land and buildings is estimated at 6,800 billion Tomans.
The publication of the list of buildings and grounds of the two major automobile companies in the country is in a situation where according to the latest report received from parts manufacturers, the total unassigned claims of the domestic supply chain from the two automakers has reached more than 45,000 billion tomans, of which about 12,000 billion tomans. Deferred claims have not been assigned.
Therefore, the total assets of the building and land are equal to 80% of the arrears owed to the parts manufacturers, while in addition to the debts of the automakers to the parts manufacturers, the bank debts of these companies should also be considered.
What is clear is that the economic policy in the country must move in a direction that stimulates productive investment in order to lead to a boom in production. This is at a time when policies over the years have not only been to encourage production, but also to encourage speculation and speculation. In the automotive industry, too, the traces of the wrong economic policy are clearly visible.
In this industry, the policymaker, by insisting on price suppression, or in other words, the continuation of order pricing, which has resulted in an increase in accumulated losses and production, has provided the ground for a change in the direction of production in car companies. On the other hand, the flow of real estate, especially in the last three years, due to zero risk or low cost on the wave of inflation expectations, which caused an unprecedented jump in property prices in Tehran and other cities.
Thus, these days one can clearly see the result of the suppression of production on the one hand and the zero risk brokerage in real estate transactions on the other hand. The publication of the list of buildings and grounds of the two major automakers in the country, the total cost of which is estimated at 9,500 billion tomans, is important because the defective flow of production in recent years has marked the worst situation for the automotive industry in the current situation. In other words, the capital of automakers, especially in the years when production flourished, instead of spending on improving the quality and improving the production infrastructure, went to buy buildings and land.
Now the question is, how can a carmaker refuse to sell some of its non-manufacturing assets despite its growing debts? What is clear is that the automaker has been bound to sell its surplus assets in the past two years in the form of privatization and the transfer of shares.
The story is that the privatization and transfer of shares of two automobile companies in 1998 was assigned to the Ministry of Industry, Mines and Trade with the approval of the Economic Coordination Council of the heads of the three powers, in a situation where the then Minister of Silence Reza Rahmani The transfer promised to privatize the country’s two largest automakers by the end of 1999.
In the process, the sale of surplus property, subsidiaries, and finally the sale of parent companies was envisaged. As a result, carmakers have been auctioning off some of their surplus assets since last year. In this way, the automakers offered their companies’ properties and waste in auctions according to a three-step process, and a good amount of liquidity entered the automakers from the sale of this property.
According to some automotive entrepreneurs, the resources from the sale of surplus property in car companies were used to pay off debts as well as supply parts. What is clear is that one of the most important reasons for the decision of the Coordinating Council of the three powers to transfer the shares of the automakers was to attract liquidity through the sale of property, because the central bank avoided providing new facilities to the automakers. In this way, the automakers apparently had no choice but to sell their property to provide liquidity. Although the sale of the subsidiaries, which is in the second process of transferring the shares of the automakers, has been more or less implemented, but it is not proceeding according to the initial planning.
However, last year Farshad Moghimi, CEO of Iran Khodro Industrial Group, stated that the company’s plan is to offer shares of 17 Iran Khodro subsidiaries worth more than one thousand billion tomans. Moghimi even announced the transfer of one of the board of directors of Parsian Bank and emphasized that we will transfer the rest of the board of directors and we will get out of the ownership of the share. But there has been a lot of talk about why they are reluctant to divest non-productive property, with many automakers believing that selling property should be a planned investment in product development and quality improvement, whereas in the current situation, selling property alone Debt or salary will be paid.
What is clear is that carmakers have been lagging behind their production plans for years due to liquidity problems, yet they are resisting selling property. According to experts, their resistance is due to the fact that they can sell these properties at the price of the day when they see fit. As mentioned, some also believe that automakers should move towards selling their real estate and fixed assets when they intend to invest in their product development or product lines.
Why not sell non-productive property?
As mentioned, the two major automakers of the country published a list of their land and buildings on the Cadal website of the Exchange Organization this year. An examination of the published lists shows that in addition to their own manufacturing plants, automakers have properties that have nothing to do with production, but are on their list of assets.
While the list of buildings and land published by automakers is full of non-productive properties, we see that they are facing a liquidity challenge. Given this, the question arises as to why automakers, despite grappling with the liquidity challenge, are somehow preventing the sale of their non-productive land and buildings?
In this regard, Saeed Madani, the former CEO of Saipa Automotive, says that normally automakers are obliged to sell their non-productive assets and bring the financial resources from their sale into the production cycle. The car expert continued that car managers also do not have much resistance to selling their property, but sometimes this sales process slows down. Regarding the reasons for the slowdown in the sale of buildings and land owned by carmakers, Madani says that this issue is largely affected by macroeconomic conditions.
According to the former CEO of Saipa, car companies, in a situation where the exchange rate fluctuates a lot and the macroeconomy is not stable enough, somehow move their canes in selling their properties, because there is a concern that they will sell their properties at lower prices. Bring them. As Madani says, carmakers are usually more obsessed with selling their subsidiaries because they believe that selling some of their subsidiaries to the private sector creates a monopoly on the buyer and puts pressure on the automaker.
Farbod Zaveh, an automotive expert, agrees with Saeed Madani and tells our correspondent that the country’s economy is a bloated economy, so it is natural for all companies active in the economic field, including automakers, to move towards creating fixed assets for themselves. This automotive expert believes that the lack of fixed assets in a way affects the financial statements of companies, so car manufacturers also keep part of their assets in the form of fixed assets. According to Zaveh, in the current situation, car companies are engaged in loss-making production due to the implementation of mandatory pricing policy, and the more they produce, the more losses they include in their financial statements. “In this loss-making situation, automakers are trying to maintain their fixed assets so that they can pay off part of their debt through the sale of fixed assets, if necessary,” he said. According to Zaveh, maintaining a portion of assets (land and buildings) in a fixed way somehow keeps the automakers’ breathing space open to provide liquidity when needed.
Hassan Karimi-Sanjari, an automotive expert, also told our correspondent about the resistance of automakers to sell their properties. Automotive companies face several challenges in selling their land and buildings. The car expert says that part of these properties belong to the offices of companies under the car manufacturers in the cities. As Karimi Sanjari says; Normally, all companies affiliated with the automakers have set up offices in Tehran to follow up and carry out their administrative affairs, and these offices are part of the properties that the automakers cannot sell.
The next issue is the real estate of companies that have other shareholders besides automakers.
Karimi Sanjari believes that carmakers are interested in selling the property because of the liquidity challenge, but their partners and other shareholders on the board of directors of these companies oppose the sale of the property and somehow block the sale of such property.
“Of course, in the current situation where automakers face many challenges, such as sanctions and enforcing pricing policies, they are somehow resisting selling their property so that they can sell it at the current price when they need the money,” he said. .
Karimi-Sanjari emphasizes that carmakers should move towards selling their real estate and fixed assets when they intend to invest in the development of their product or production lines. The automotive expert goes on to say that the sale of property and fixed assets with the intention of spending on current expenses, such as the payment of wages, does not bring any profit to the automaker and causes these companies to lose only their assets and receive nothing in return. .
Source: the world of economy
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