Iran's State Automakers Bleed $1B Annually, Privatization Seen as Risky Cure for Mismanaged Sector
• Iran's state-owned automakers are incurring huge losses of $3.7 million per day, totaling over $1 billion annually • The losses are due to government interventions and inability to meet domestic demand while charging very high prices • The industry accounts for 10% of Iran's GDP and 4% of workforce, but produces poor quality and unsafe vehicles • Privatization is seen as a solution but faces risks of corruption which is already rampant in the state-controlled sector • Government is criticized for lack of action and only providing "speech therapy" about the problems facing the auto industry