Strategic mistake of automakers in hoarding liquidity of companies

According to Khabar Khodro, chief of Industry Committee of Industry and Mines Commission in Parliament said, “In current condition, solving problems of auto industry needs automakers effort more than before.”

Mehrdad Bazrpash in an interview with Khabar Khodro’s lobby correspondent told, “Increasing efficiency of production factors needs serious act and effort of members of auto industry. Certainly in this situation with decreasing different components, which are affective on car production such as manpower, equipments and facilities, dedicated space, extra costs and etc. efficiency of production could be increased.”

He added, “Unfortunately, in recent years focus on bank resources has been considered as basic source of supplying liquidity of auto industry. With hardening liquidity problem of automakers and approval of Money and Credit Council, some promises offered to automakers but because of spastic operation of banks in 2 or 3 recent years this promises are not accomplished yet.”

Bazrpash announced, “Using and hoarding liquidity of companies in unnecessary actions and spastic operation of banks and not offering facilities to automakers, increasing exchange rate and also handling costs and LC opening conditions all have affected reducing liquidity and increasing problem in working capital of companies.”

Chief of Industry Committee of Industry and Mines Commission in Parliament admitted, “It seems that apart from the efficiency, 2 actions should be accomplished in auto industry. Firstly, government should try to solve liquidity problem of automakers, as auto industry is not a usual industry to be act normally but it is a promoter industry. Certainly, such an industry needs a special thought.”

Finally, he said, “Now, solving liquidity problem of automakers needs government’s effort and specially consistencies of Ministry of Industry and Mine.”