Iran General NewsIran auto production plunges by a third

Iran auto production plunges by a third

-

AFP: Iran’s auto production fell by more than 36 percent over the past three months, the industry ministry was quoted by ISNA news agency as saying on Saturday, citing “lack of money.” TEHRAN (AFP) — Iran’s auto production fell by more than 36 percent over the past three months, the industry ministry was quoted by ISNA news agency as saying on Saturday, citing “lack of money.”

Production fell to about 241,500 vehicles in the first quarter of the Iranian year (March 21 to June 20), according to the figures.

Iran built more than 1.5 million vehicles in 2011/2012.

The decline coincides with the halt of parts deliveries to Iran by French manufacturer Peugeot because of Western sanctions.

Peugeot is a partner of the main Iranian auto maker Iran Khodro (IKCO), which manufactures the 405 and 206 models, whose output represents approximately 40 percent of Iranian automobile production. They incorporate 5-10 percent of components imported from France.

Peugeot announced in February it had stopped shipping to Iran and repatriated most of its staff. It cited difficulties created by the Western banking embargo against Tehran, which has complicated trade and caused a shortage foreign currency.

IKCO’s parts imports from Peugeot accounted for 700-800 million euros ($572-654 million) per year, according to figures available in Tehran.

The head of the Iranian Association of Automobile Manufacturers, Ahmad Nematbaksh, told ISNA that the drop in production is due to the “lack of money available to the manufacturers” given by the state, which caused a “cash crisis.”

Citing industry executives, business daily Donaye Eghtesad said the decline in production is “unprecedented in the past 20 years” and could create difficulties for the entire automotive industry, including subcontractors, with plant closures and layoffs, if the government does not come forward with $1 billion in aid.

The automotive sector generates about 500,000 direct and indirect jobs in Iran, according to official estimates.

Latest news

New Blow to Iran’s Government, Iraq Seeks To Remove It From Its Energy Market

Iraq is facing many problems due to the continuation of international sanctions against the Iranian government and is seeking...

Daily Protests in Iran Are Developing Into a ‘Dangerous Situation’ for the Iranian Regime

Due to the Iranian regime’s mismanagement of the economy, their rampant corruption, and their brutal oppression of society, protests...

Huge but Hidden Corruption

The chairman of Iran’s Privatization Organization Hossein Ghorbanzadeh previously said that about 525,000 properties have been registered in the...

Iran Government’s Quagmire in the Nuclear Negotiations

After the first round of Iran’s nuclear negotiations with world powers, known as the JCPOA, Ali Bagheri, the Iranian...

Iranian Teachers Continue To Protest Their Rights Due to the Regime’s Inaction To Resolve Their Demands

On December 2, Iranian teachers in nearly 50 cities across Iran held demonstrations to protest the Iranian regime’s lack...

Frustration of Iran’s Middle Class

These days, the middle class of Iran still maintains its cultural conditions, but economically it has collapsed into the...

Must read

Iran plans to build $4 billion natural gas pipeline to Europe

Bloomberg: Iran is seeking to build a $4 billion...

Iran-backed insurgents captured in Iraq – U.S.

Reuters: The U.S. military in Iraq captured four suspected...

You might also likeRELATED
Recommended to you