Iran General NewsIran replaces head of its largest car maker-media

Iran replaces head of its largest car maker-media


ImageReuters: Iran has replaced the head of partly state-owned Iran Khodro, the Middle East's largest car maker which has a joint venture with France's Renault, Iranian media reported on Tuesday.

ImageTEHRAN, April 7 (Reuters) – Iran has replaced the head of partly state-owned Iran Khodro, the Middle East's largest car maker which has a joint venture with France's Renault, Iranian media reported on Tuesday.

The reports carried by several newspapers did not give a reason why managing director Manouchehr Motaghi was replaced by Javad Najmuddin, who previously headed a subsidiary of rival state car firm Saipa.

Saeed Laylaz, editor of business daily Sarmayeh, said Iran Khodro had lost market share and its drive to establish branches in countries such as Syria and Sudan had not been profitable.

"A big chunk of the car market was lost to the competition," Laylaz wrote in a commentary in another Iranian daily, Etemad-e Melli.

There was no immediate comment from Iran Khodro, which like other Iranian vehicle companies enjoy high tariff protection from foreign rivals in the country of 70 million people.

Sarmayeh said the change of managing director was carried out by the Industries Development and Renovation Organization, which is in charge of state firms in the automotive industry.

The newspaper quoted Motaghi as saying Iran Khodro's sales amounted to $10 billion in the 2008-09 Iranian year, when he said it exported 42,000 cars. Motaghi has been appointed senior adviser to Industries and Mines Minister Ali Akbar Mehrabian.

Iran Khodro has partnerships with global carmakers, such as a joint venture with France's Renault to make the no-frills Logan, sold in Iran as the Tondar-90, and also Peugeot's 206 and 405 models.

Motaghi, who headed Iran Khodro for six years, said in January the company aimed to boost output and exports in coming years despite a global downturn for the sector and Western sanctions on the country which have pushed up costs.

He told reporters Iran Khodro was profitable but did not give figures. He also played down the impact of sanctions imposed over Iran's disputed nuclear programme.

Iran, the world's fourth-largest oil producer, was ranked the 16th biggest car producer in 2006. (Reporting by Hashem Kalantari; Writing by Fredrik Dahl; Editing by Jon Loades-Carter)

Latest news

Requirements for a Simple Life in Iran; the Unattainable Dream

It is no exaggeration to say that Iran's economy is in a major freefall. All economic indicators are suggesting...

Sale of Iran’s Historical Items; Is There Anything Left To Sell?

Some of the members of the Iranian regime’s parliament have submitted a plan on the 'optimal use of antiquities...

Iran: Bread Protests Are on Way, Stronger Than Gas Protests

Observers in Iran believe that nationwide protests and uprisings are underway following the Iranian regime’s decision to increase the...

Iran: Tax Pressure on the People and Exemption for the ‘Super Rich’

In a critical situation where most of the Iranian regime’s officials and media outlets are warning its leaders to...

Iran’s Regime and Its Expertise in Reversing the Truth

In order to get an insight into the Iranian regime’s real behavior and culture, you first need to analyze...

Capital Outflow Intensified in Iran

One of the current major crises in Iran’s economy is the capital outflow, which is implemented by the regime’s...

Must read

Iran a source of tension in Afghanistan’s western Herat

AFP: The influence of Iran is a source of...

Three juveniles sentenced to death

Iran Focus: Death sentences have been issued for three...

You might also likeRELATED
Recommended to you