Economy, Auto

Battle Over Auto Part Arrears

Battle Over  Auto Part  Arrears Battle Over  Auto Part  Arrears

Secretary of the Iran Vehicle Manufacturers Association has rejected the allegation that they are in heavy debt to auto part makers, saying the claim is "baseless." Ahmad Nematbakhsh slammed the claim of Mohammad Bagher Rejal, chairman of the board of directors at Iran's Auto Part Makers Guild, arguing that the debt "is not that much."  Addressing the 11th International Exhibition of Auto Parts held earlier this week in Isfahan, Rejal said available data indicate carmakers are in debt to auto part makers to the tune of 45 trillion rials ($1.3 billion at free market exchange rate). The auto part makers are finding it impossible to deal with the financial pressure. However, Rejal said, "Parliament members refuse to acknowledge the issue." Auto news website Asre Khodro reported in mid May that Saipa, Iran's second largest carmaker, failed to pay its debt to auto part manufacturers and is in arrears by over five months. Contracts signed between carmakers and auto part manufacturers stipulate that buyers must pay for parts within three months.