Financial Tribune - By highlighting the automakers� massive debt to local parts suppliers, industry lobbyists are once again calling on state authorities to extend loan facilities to these firms

Marred with mismanagement amid an economic crisis, Iran�s auto industry is saddled with a massive debt, the head of a local guild of auto parts makers said.

Arash Mohebbinejad also told IRNA, �Iranian carmakers owe local parts manufacturers 310 trillion rials.�

Calculated on the open market forex rate of $1 to 157,000 rials on Wednesday, 310 trillion rials would amount to $1.97 billion.

This is while semi-state carmakers Iran Khodro (IKCO) and SAIPA receive hard currency loan facilities at the subsidized rate of $1 to 42,000 rials.

Mohebbinejad is the secretary of Iran Specialized Manufacturers of Auto Parts Association, a lobbying arm of the industry and the official debt collector.