Billion dollar bailout for Iran's biggest car maker
AFP / Hiedeh Farmani Hiedeh Farmani
31-Jul-2009 (3 comments)

Iran Khodro, the Middle East's biggest car manufacturer, is to receive one billion dollars in a government-backed rescue package, a company official said on on Wednesday. Debts of several billion dollars were reportedly threatening to force the bankruptcy of the company, which has 60 percent of the Iranian car market and sends exports around the world.

"The Monetary and Credit Council finally agreed with the one-billion-dollar aid to Iran Khodro," Etemad newspaper said. Jamshid Imani, deputy director of Iran Khodro Company (IKCO), said half of the aid will be available "within days." "The rest will be paid after the sale of Iran Khodro's shares in Parsian Bank," he told the ISNA news agency. IKCO owns one-third of the bank's shares with an estimated value of about 2,000 billion rials (200 million dollars).

IKCO, a publicly traded company established by private owners in 1962, exports to foreign markets such as Algeria, Jordan, Lebanon, Saudi Arabia, Venezuela and several former Soviet states. It has built manufacturing plants in Egypt, Senegal and Syria.

In addition to manufacturing passenger cars, trucks and buses it is involved in the rail sector, airport installations and oil refining.

The company plans to make 680,000 passenger cars and pick-ups this year, Etemad newspaper said.

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Shah Ghollam

Compare to the US,

by Shah Ghollam on Sat Aug 01, 2009 11:13 PM PDT

German, Swedish, Canadian and French governments that have spent billions to bailed out their own auto industry, Iran is spending peanuts to bail out its own auto industry.


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vildemose

Khodro   //www.ara

by vildemose on Fri Jul 31, 2009 03:15 PM PDT


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vildemose

German Firm in Iran Bans

by vildemose on Fri Jul 31, 2009 03:06 PM PDT

German Firm in Iran Bans Staff Protests

A privately owned German company, Knauf Gips KG, warned its Iranian employees working in Iran that they would be immediately dismissed if caught in antigovernment protests, according to a document reviewed by The Wall Street Journal.

Iran's government pressured Knauf to issue the order after a senior executive was a-r res t ed during Friday prayer demonstrations two weeks ago, according to people familiar with the case.

The company, which has 22,000 employees around the world, was told that such a letter would be a condition for the executive's release............

//online.wsj.com/article/SB124900417227095813.html


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