What Happened to the Auto Industry By the Government’s Occasional Decisions?

Khodrocar – the presence of the government in the auto industry is not a secret. Iran’s auto industry seems to be private, but two major Iranian automakers are ruled by the governmental managers. Experts believe that this situation could be dangerous for the auto industry.

Regarding this issue, Aziz Akbarian, Head of Parliament of Iran's Commission on Industries and Mines said to the Khodrocar reporter that the ministry of industry, mine and trade shouldn’t choose the managers of automakers and the government have to be responsible for quality Control.

 "Choosing governmental managers for the private companies is one of the biggest problems in the auto industry. This policy will have more problems along its side. The first problem is the government direct interference in the private sector. The managers of these companies are chosen by the ministry and this could have bad effects on the competitive atmosphere.” said Farbod Zaveh, the expert in the auto industry.

 "Another pest of choosing governmental managers would make problems in attracting foreign investors. While the automakers are ruled by the governmental managers, foreign investors won’t participate in a competitive market, instead, they would negotiate with the government behind closed doors.” He added. ”Satisfying managers instead of competing and increasing quality of the products could be another pest of this policy.”

 "The government is responsible to make instructions and policies for reaching goals because the government should not participate in economic activities.” Zaveh said. "The positive changes of the auto industry would be clear soon after the decision of the government to leave this industry.”