Overnight changes in the government’s automotive policies have hindered the business of wreck yards, forcing many to close their centers and fire employees. A case in point is the restrictive decisions regarding car imports. Auto importers used to be required to send a number of clunkers to the scrap yard in return for bringing vehicles into the country. During the last fiscal that ended in March, parallel to profound changes in government policies over auto imports, a downtrend was witnessed in the business of junkyards, leading to closure of numerous centers and dismissal of many workers. Furthermore, in late June the government announced an outright ban on auto imports which is certain to further squeeze the business of scrap yards, reported local automotive website Asbe Bokhar. According to the head of the Association for Scrappage and Recycling Centers Mostafa Joudi, the recent ban on car imports has done great damage to the business of scrappage centers in charge of dismantling substandard vehicles, inflicting major financial losses on the business owners. As things currently stand, more wreck yards, in charge of removing gas-guzzlers from the streets, seem to be down the road to shuttering their businesses.
