Gov't Weighs New Approach to Privatize 2 Big Carmakers

EghtesadOnline: Economists, industrialists and market observers insist that the incessant problems of the failing auto companies is more about mismanagement and less about ownership per se.

News ID: ۷۵۲۰۳۱

28 November 2022

The Ministry of Industry, Mining and Trade is set to propose a new notion for selling government shares in two major auto companies, namely Iran Khodro Co. (IKCO) and SAIPA, the Economy Minister Ehsan Khandouzi said.

"Divesture of government shares in car companies demands an informed and effective plan that should ensure the future survival of the companies," he was quoted by Economy Ministry's news outlet as saying at a meeting with auto industry experts and market stakeholders.

According to official reports, the government has a 14.04% share in IKCO and 23% in SAIPA. In July, the Minister of Industries Reza Fatemi-Amin said the privatization of the reportedly loss-making SAIPA and Iran Khodro (IKCO) were in the final stages.