What is the cost of order pricing for the automotive industry / Complaints of component makers?
According to Tejarat News, on the sixth of January, a meeting of the Parts Manufacturers Association was held. At the ceremony, the component makers criticized the country’s car industry, noting that they were not satisfied with the orderly pricing.
The demand of parts companies from car manufacturers has reached about 36 thousand billion tomans. According to one auto market activist, the auto industry has not helped auto parts companies, and in practice many of them have gone bankrupt.
What are the criticisms of the component makers?
Mohammad Reza Najafi Manesh, president of the Parts Manufacturers Association, told Tejarat News: “The problem of parts manufacturers, which is not to some extent the fault of car manufacturers, is mandatory pricing.” The component maker must receive his money for the production of the product.
He added: the parts manufacturer should pay for the raw materials as soon as possible, but because the car manufacturers are unable to pay the parts manufacturers due to the financial problems of the car and as a result of mandatory pricing and the loss of 83 thousand billion Tomans that has entered this industry. This phenomenon has put a lot of pressure on component makers.
The chairman of the Parts Manufacturers Association said: “The demand of the parts manufacturers is that their money be paid within a month.” Payments usually take up to six months, if the raw materials are purchased at least one month before the production process. Parts factories also have to pay workers.
Najafi Manesh continued: Price change is another issue. Parts makers have seen a 40 percent increase in personnel costs since the beginning of the year. Also, the issue of inflation remains and affects costs. But after 10 months of the year, prices have not changed compared to last year and have placed a heavy financial burden on the manufacturer.
He said: “Another criticism of the component makers is the way they interact and the contracts that are scheduled to follow up on these problems in the meeting.”
Read the latest car news on the Tejarat News car news page.