Economy, Business And Markets

Pars Khodro’s L90 Facing New Challenges

Pars Khodro’s L90 Facing New ChallengesPars Khodro’s L90 Facing New Challenges

The French automaker Renault has fallen short of fulfilling its promise to export Tondar 90 (Logan) spare parts to Iran, causing a decline in the production of the small family car here, ISNA reported, citing an industry official, on Friday.

The official warned that the new situation could even threaten long-terms plans for the production of the car in Iran.

However, the report said that the local manufacturer of L90 has failed to meet its liabilities to the recent buyers, and those have paid in advance to get the car in a specific period of time.

Critics slam Pars Khodro’s policy, saying it’s a usual stunt by the carmaker to raise the price of the car, and that the company should be serious about its commitments to customers.

Due to the problems facing L90 production, the competition council called for the termination of L-90 sales until a new contract with Renault regarding regular import of the spare parts is concluded.  

It is likely to see L-90 prices soar in the near future, said Reza Shirazi, head of the Competition Council, adding that “considering the existing challenges, it would be better for Pars Khodro to shut the production line of L-90.”

Shirazi stated that the limitations imposed by the council on Pars Khodro include a halt to new pre-sales, until the company provides assurances that it’s capable of meeting customers’ demands.

Lately, Pars Khodro deputy manager announced the finalization of an agreement with Renault to boost daily L-90 production to more than 200 units.

“After a few months of cut in production, a new plan has been put into action since last week, which will increase L-90 production in Iran,” ISNA quoted Armin Makvandi, deputy manager of production planning in Pars Khodro, as saying.

Highlighting Pars Khodro’s commitment to its customers, Makvandi said that daily L-90 production recorded a tangible growth as Pars Khodro is now assembling 50 new L90 cars, while it had assembled only 30 units in the past few months.

He also added that based on a new production schedule, more than 200 cars will be produced by mid-February.

Makvandi also emphasized that considering Pars Khodro’s new schedule, the company will fulfill all the pledges it has made to the customers by the end of the current Iranian year (ending March 20, 2015).

Commenting on the current slump in the global car market, Makvandi said that foreign car manufacturers should pay a special attention to Iran as an emerging market. On the other hand, he said, local carmakers must be cautious not to offer options to their customers they may not be able to commit to.

Production of L90 started in 2004 as a joint venture called Renault Pars. The company is in charge of managing the assembly of CKD Renault cars by local manufacturers Iran Khodro and Saipa – through its subsidiary, Pars Khodro.