Economy, Auto
0

Iranian Carmakers Saddled With $1.4 Billion Debt

Major local carmakers Iran Khodro and SAIPA have seen their debt tally with parts makers, banks and financiers build up in the past few months amassing debt of 200 trillion rials ($1.379 billion), which they are either unable or unwilling to pay
Iranian Carmakers Saddled With $1.4 Billion DebtIranian Carmakers Saddled With $1.4 Billion Debt
Over the past few months, and due to the economic hardships several parts makers have been forced to shut down their factories and lay off over 150,000 people. If the situation does not improve some 100,000 other people will soon join the dole queues

Major carmakers Iran Khodro and SAIPA have seen their debt tally with parts makers, banks and financiers build up in the past few months amassing a debt of 200 trillion rials ($1.37 billion), said the secretary of the Specialized Manufactures of Auto Part Association.
Arash Mohebinejad told ISNA that over the past few months, “Major carmakers’ debts have surpassed the previous amount of 150 trillion rials ($1.03 billion) and has reached 200 trillion rials ($1.37 billion),” a 33% jump.
In recent weeks several meetings were held between carmakers, parts manufacturers and government authorities to find a viable solution out of the industrial and financial impasse. The sessions were in vain and no solution was agreed to help salvage the beleaguered auto industry. 
 

Premium

Subscribe to the Financial Tribune to continue reading this article or Log in to your account if you are already a subscriber.

Find out more about our subsciption plans here.

Add new comment

Financialtribune.com