Iran to pay $816 million to support local carmakers

Bloomberg: Iran’s ministry of industries, mines and commerce will pay 10 trillion rials ($816 million) to Iranian carmakers as they are going through “financial problems,” Tehran Times reported. Bloomberg

By Yeganeh Salehi

Iran’s ministry of industries, mines and commerce will pay 10 trillion rials ($816 million) to Iranian carmakers as they are going through “financial problems,” Tehran Times reported.

Iran’s two biggest automakers, Iran Khodro Co. and SAIPA, are struggling to pay debts to domestic part makers, Industries, Mines and Commerce Minister Mehdi Ghazanfari said according to the newspaper.

Car production decreased by 37.4 percent in the first four months of the current Iranian year that started on March 20, compared to the same period last year, the report said. Some 1.6 million cars were manufactured in Iran last year and about 55,000 cars exported, Ghazanfari told the newspaper.