May 14th, 2008

Source: Dastranj Website

The seriousness of the sanctions, the distressful condition of the auto-part companies in providing financing due to the dilatory payment of the auto-makers, numerous changes in management of automobile companies such as Saipa; this has been the cause for the recurring stoppage in the assembly line of the two (2) automobile companies such as Iran Auto and Saipa.

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The guarantees to customers offered by automobile companies has been delayed as a result of the recurrent stoppages on the assembly lines; this has therefore cause dissatisfaction in the applicants wishing to purchase these automobiles.

Dastranj website reports that the seriousness of the The seriousness of the sanctions, the distressful condition of the auto-part companies in providing financing due to the dilatory payment of the auto-makers, numerous changes in management of automobile companies such as Saipa; this has been the cause for the recurring stoppage in the assembly line of the two (2) automobile companies such as Iran Auto and Saipa.

Based on these issues, Saipa automobile company which enjoyed lead in the automobile assembly line activity than Iran Automobile company, is now confronted with standstill  and this has caused this company’s failure to meet it’s obligation to it’s customers.

In this midst, the auto-part makers are now also facing cash flow problems and certain of them are even facing bankruptcy or are already bankrupt and are confronted with having to close.

Translated from Persian to English by Planet Iran staff