Some Iranian experts who warned few months ago, about the mistakes of policymakers including; The decline in car circulation and the declining trend in the car market, now, are united to state that the governments mistakes within a month to embark on sanctions can escalate the effects of the Tramp attacks on the Iranian economy.
Who is the culprit?
In this regard, Maziar Beiglou, the spokesman of the Iranian Auto Part Manufacturing Association (IAMPA), while confirming the problems of the country’s auto parts manufacturing sector, said: “In the event that the procedures for importing the materials needed for the production sector to facilitate their production should have been more convenient than before, the lack of transparency and unresponsive routine of the Central Bank of Iran (CBI) in conjunction with the lack of cooperation with the auto part makers has resulted in decreasing the production volumes and even shutting down of many part manufacturing companies and SME’s.
In few cases, we need the influence of the state institutions in foreign financial relations, but we can see no help from the officials. But even though we have solved outside problems completely abroad, unfortunately, the lack of real time allocation of foreign currency or credit to manufacturers, has caused output reduction or even shut down of SME’s production units”
Lack of cooperation by the custom office
The head of the Homeland Part-Making Industry’s Association also said: “In the last few weeks, car production in the country has fallen, while a significant proportion of cars that are already produced are stopped at the factory floor, due to lack of some or incomplete parts”
Mohammad Reza Najafimanesh continued: “Unfortunately, besides all internal and external problems, the huge storage of not custom cleared of imported components, parts and raw materials in different custom offices sector is the newest problem in the manufacturing industry. He stated that the components and the materials that have been imported into the customs, are waiting for 14 digit clearance codes of the CBI due to clearance requirements of the custom office, but, to get the 14-digit code from the Central Bank we are faced with another requirement of the CBI, i.e., the code is issued only when the allocation of the corresponding currency for each imported bunch has been registered at a new currency portal system (NIMA) that is under the control of the CBI. Acquiring such a code by itself needs a lot of time and results a long delay!
The head of the Homeland Part-Making Industry’s Association continued: “Therefore, the automobile industry and the manufacturing units are in a defective cycle that, despite the supply of parts and their entry into the customs, there is no possibility of discharging of raw materials and components to use in the car manufacturing factories.
He added that the result of this situation is that, on the one hand, vehicle production is declining and, on the other hand, a significant percentage of produced vehicles are also produced incompletely due to fractional defects. This situation will reduce the supply and inflammation of the car market on the one hand and exacerbate the financial problems of automakers and parts manufacturers on the other.
“We hope that with the concurrence of the related organizations, in particular the Ministry of Industry, Mining and Trade, Customs and the Central Bank, this problem will be solved very soon”. He also said: “In order to hit our economy and national employment, the boycott of the automotive industry is the first choice of USA among other sanctions plans, and if the incidence of such problems is not resolved as soon as possible, the situation will be aggravated by the shortage of car production and increasing the problems of the manufacturing industries.
▫It is important to see the effect of the sanctions soon
“The effect of US sanctions on Iran’s car industry should be expected by a quarterly interval of 97s,” Farbod Zawah said, rejecting the impact of sanctions on the decline in car production in May 1997. ” We should not be too cynical about the statistics of automakers in May 1997.
Since payments for imported parts and materials involved in the production of May were paid in March 97, the discussion of the impact of sanctions on car production is currently denied, and internal factors are involved in this decline. Of course, such events have been similar in recent years, and this year, due to truck strikes, which reduced the number of items and materials, as well as the increase in vacation rates, we have witnessed a total decline in vehicle production. “/ 7th of the morning
SOURCE: @PIMetelegram
