Iran Khodro Company (IKCO), the largest automaker in the Middle East will receive a government bailout of $1 billion. According to IKCO’s deputy director, Jamshi Imani, half of the aid will be available “within days. The rest will be made available after the sale of Iran Khodro’s shares through Parsian Bank.”
Khodro’s currently has debts of billions of dollars, threatening the company into bankruptcy. Authorized agents in Isfahan, Khuzestan, and the capital Tehran were closed because of customers’ dissatisfaction with after sales service. The Carmaker says it plans to produce one million vehicles this year.
The economic Daily Sarmayah says the government aid will cover only part of the company’s shortfall, and that Khodro will face “continues financial problems as long as it does not make changes to its managerial structure, costly manufacturing sited abroad and keep inexpert people who are unfamiliar with the auto industry.”
