The latest reports from Iran have revealed auto parts factory in Isfahan that is now working at only 30% capacity due to a massive slump in consumer spending power and demand.
The company’s manager said: “With decline in production of cars, especially Peugeot, this factories production has also decreased.”
He told the state-run ILNA news agency: “Until last year, this factory sold 3,000 spare parts per day to vehicle manufacturing companies. But this number has now fallen to 300.”
The dip in sales has come despite the low cost of vehicles over the past decade, and has meant 100 workers being laid off, he said.
Meanwhile, the managing director of the defunct Thermal Industrial Company explained why the company was shut down in 2011 due to delayed payments from the regime.
He said: “This company existed 1971 to 2011 and several thermal cooling towers for steel melting industry, refinery and power plants were built here.
“The company worked in the thermal installation field for more than four decades before these problems forced it to shut down.
“We have approached government employers many times to ask for payment of their debts, but we were rudely turned away.”
Iran’s main lighting production company in Isfahan province, Golnoor, is also undergoing severe financial problems, reports said.
The manager said main challenge was also bad debts from the regime, adding: “Sadly this factory is facing many problems due to the non-payment of debts by government organizations.”
The regime owed Golnoor more than five billion Tomans, and as a result it was now working at only 25% of its capacity, he said.