Car Quality-Liquidity Link Examined

An automotive official said lack of liquidity is one of the factors behind the automakers’ negligence in controlling the quality of parts, but the delivery of low-quality, costly cars is unacceptable
Car Quality-Liquidity Link Examined
Car Quality-Liquidity Link Examined

An automotive official said quality should not determine the price of a vehicle, as it puts pressure on component makers, raw material producers and workforce due to the lack of favorable production conditions.
Mahmoud Najafi-Sehi, a member of the board of directors of the Association of Homogeneous Propulsion Industries and Component Manufacturers, added that at times, production is not profitable or there is not sufficient liquidity to improve quality and spend money on R&D issues, whereas liquidity impacts car quality, Khabar Khodro reported.
“If the products are sold at high prices but the quality is poor, the manufacturer must be held accountable so that the rights of buyers are not compromised,” he said.


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