The beginning of the executive process of privatization of automobile manufacturers

Khodrocar - Mr. Hossein Gurbanzadeh, the head of the Privatization Organization, stated that the accumulated losses of automobile manufacturers are increasing every year and have now reached more than 150 thousand billion tomans. It has reached 9 thousand billion tomans.
 

Mr. Fatemi Amin, the Minister of Industry, considers the reason for the increase in the loss of car manufacturers to be the non-privatization of car manufacturers and the interference of the government. According to auto industry experts, the lack of privatization actually increased the accumulated losses of car manufacturers.

Mohammadreza Najafi Menesh, the head of the Association of Homogeneous Parts Industries, referring to the existence of a legal obstacle to handing over car manufacturers to the private sector, said: He gave the shares of these companies as collateral to some of the country's major banks. In this situation, privatization is an effective measure to reduce managerial inefficiencies due to lack of interests of managers.
 
He added: If the government really wants to carry out privatization, it must somehow release its shares by releasing this collateral through the mechanisms and operations that the managers of the country's banking system themselves know, so that we can witness the process of handing over automobile factories.
 
Corporatization in the automobile industry, i.e., the state-owned automobile manufacturers, is not new, and for several years, industry ministers have been promising privatization with every visit. Based on this, during his field visit to Iran Khodro, the president issued an 8-article decree, in the eighth paragraph of which he mentioned the transfer of car manufacturers.

Mr. Khandavi, Minister of Economy, also said on 9th Mehr: "The state company has a deadline to transfer its collateral shares and if it does not use the one-month deadline, the Ministry of Economy and Finance will be given the opportunity to officially replace other shares."
 
Now, Mr. Abdullah Tawakuli Lahijani, Director General of the Automotive Industries Office of the Ministry of Security, has announced the start of the executive process for the privatization of automobile manufacturers, and the valuation of automobile manufacturers has been done based on this.
 
Announcing this news, Mr. Abdullah Tawakuli Lahijani added: A joint road map has been prepared with the Ministry of Economy regarding the automobile industry that will be handed over from the point of view of higher production and the steps taken will lead to an increase in local production and infrastructure (platform) and now the implementation steps are underway.
 
Referring to the accumulated losses of the car manufacturers, he said: several different paths have been considered to compensate the accumulated losses of the car manufacturers; The first point is how to reduce overhead costs by increasing production, the other point is to improve the relationship between car manufacturers and the supply chain, so that the supply chain produces with economic volume and price reduction is formed through the cooperation of manufacturers with car manufacturers and cost reduction.

Tavakoli Lahijani added: Another point is to modify the product portfolio of car manufacturers; It means that car manufacturers introduce a product to the market so that they can reduce costs based on engineering solutions that lead to a reduction in the operating losses of car manufacturers. Now, we have reduced operating losses in one of the car manufacturers since the beginning of the year.
 
The General Director of the Automotive Industry Office of the Ministry of Industry, Mines and Trade added: The accumulated losses of car manufacturers did not happen overnight, therefore, we must reduce the losses in car manufacturers in one direction with a set of solutions. One month, we designed a three-step transformation program that was allocated to the production flow.

In the past few years, we were faced with the problem of incomplete car production. In 7 months of this year, the production of incomplete cars was stopped and complete cars were produced. Now, in the field of commercial vehicles, there is an increase of 187%.
 
He said: In the second step, we have focused on the modification of new structures for the development of quality products, and the joint structures and synergy of car manufacturers play a key role.
 
The financial statements of the privatized automakers show that not only do they no longer have accumulated losses, but they have also become profitable; We will follow up on this issue until we get the result.