Mergers that would result in monopoly in auto industry

  According to Khabar Khodro, member of Economic Commission in Parliament said, "Experience shows that mergers that have happened until today has resulted in nothing but monopoly in auto industry."

Iraj Nadimi in an interview with Khabar Khodro's reporter told, "Although these mergers look logical in terms of reducing production and extra costs, but they have resulted in monopoly in pricing, production and etc."

He added, "I am opposed to current mergers in country as they would result in destruction of small corporations and their integration in big ones and as the result the competition among companies would be faded away. Therefore, it looks that current process of mergers is not accurate and bigger divisions should be downsized."

He admitted, "This process make it possible to concentrate all power, decision making and authority in one place, which would not be beneficial for consumers and people."

He remarked, "Production in auto industry would not become economic with such mergers and it seems that basic problem in this issue is in financial, technical and innovation divisions."

"Basically, economic production and price is not relevant to amount of production as these small manufacturing units in other countries are made economic so such issues are just excuses for monopoly."

Finally, he said, "There is a way for economic production and it would not become economic with mergers and bigger corporations. Bigger companies have more costs, too."