Privatization of automobile manufacturers from word to action / Don't repeat past mistakes

Khodrocar - The handing over of automobile manufacturers' shares was one of the eight decrees of the president, according to which it was decided that preparations should be made by September, but three months have passed since the appointed time, and this issue has become a place for controversy.

In the meantime, Saipa, as the main shareholder of Pars Khodro, has recently announced its request to hand over this company to the stock exchange organization, and it seems that Pars Khodro should be considered the first state-owned car manufacturer to enter the privatization phase. Meanwhile, there are concerns that this car manufacturer, which was once in charge of producing the highest quality cars in Iran, will suffer the same fate as Hepco and Azarab. Therefore, questions such as the necessity of transferring the shares of this company are raised.

"The reason for this handover is that the two blocks of Iran Khodro and Saipa are in the banks' collateral and the amount of these two collaterals is a significant amount and these two car manufacturers are not able to pay their debt to the bank until finally the government shares of Iran Khodro and Saipa are out of the banks' collateral. and go through its normal procedure for transfer through the stock exchange." Davoud Mohammadi, expert of stock market told khodrocar reporter.

"Therefore, it seems that the planned plan was to hand over the assets of these two car manufacturers to give the resulting liquidity to the bank in order to pay off the debt of these two car manufacturers, so that finally their government block will be handed over." he added.

"It seems that the problem of the automobile industry is not privatization, and it is definitely not possible to see a change in the automobile industry with the transfer of 12%, 19% or even 100% blocks of Pars Khodro, Iran Khodro and Saipa." He said.

"With the transfer of the shares of these three companies, the government will continue to determine the board of directors and the CEO and ultimately the policy of these companies, and it seems that the transfer of these automobile companies will only postpone the death of automobile manufacturers." He mentioned.

"With the liberalization of imports, importers will be able to import as many cars as they need, and then they will continue to exist in the competitive environment of Iran Khodro and Saipa, otherwise they are doomed to failure." He continued.

Mohammadi mentions the creation of competitive conditions, the 100% liberalization of imports and the formation of the determination to privatize automobile manufacturers as requirements for privatization: the government should not determine the board of directors of these two companies after the privatization of automobile manufacturers. The wrong management structure is one of the problems that car manufacturers are dealing with, and it is interesting that instead of reforming the structure of Iran Khodro and Saipa, they are hastily looking for the transfer of their shares.

He states: Assuming that privatization takes place and the transfer of management and ownership also takes place, but since structural reform has not taken place due to accumulated losses and heavy debts, this model of transfer will go nowhere.