The CEO of Kerman Motor announced the company’s plans to develop the country’s automotive industry and create a powerful automotive group after taking over the management of Saipa.
Saman Firouzi, CEO of Kerman Motor Company, referring to Kerman Motor’s more than 30 years of experience in the country’s automotive industry and cooperation with three international automakers (General Motors, Volkswagen, and Hyundai), announced that the company is ready to form the country’s largest automotive group within the next five years by acquiring the management shares of Saipa and bringing it into the top 10 automakers in the world.
In part of her published letter, she referred to the superficial and promotional slogans of some people who are raised without knowledge of the automotive industry, emphasizing that these slogans are mostly presented with the aim of creating a commercial showcase under the name of “production” and will in practice lead to the elimination of thousands of jobs and the destruction of the automotive supply chain.(feminine)
According to her, the automotive industry, with its 60-year history in Iran, has lagged behind younger global competitors, and now is the time for realistic planning to make up for this lag.
Kerman Motor has announced six strategic plans in this direction as follows:
1. Increasing production to one million vehicles per year
By merging the production capacities of Kerman Motor and Saipa, it will be possible to produce one million vehicles annually without the need for new investment. This measure will allow for optimal use of the two companies’ pressing, body building, engine, gearbox, paint and assembly lines. Increasing the circulation can reduce production costs, reduce the final price of the vehicle and provide a wider range of products.
2. Technology development and launch of new models
Through this partnership, Saipa will be able to add three new car models to its product portfolio each year that are competitive in export markets. This process will begin in the second year and continue until the fifth year. The introduction of new technologies and more up-to-date designs will mean safer, more beautiful, and more fuel-efficient cars that will be attractive both domestically and for export.
3. Reducing logistics costs and localizing production
By utilizing economies of scale and proper distribution of production lines across different sites, logistics costs will be reduced and domestic component production will gradually increase. As a result, we will witness increased domestic production, direct job creation in the country, and reduced foreign exchange dependence.
4. Ensuring profitability through optimization and increased productivity
Ensuring the company’s profitability through product portfolio management, reducing logistics costs, and increasing economic production volumes and productivity. The profitability of a sustainable automaker will mean continuing production, maintaining jobs, and even increasing welfare benefits for workers in the industry.
5. A billion dollar investment
Over the next 5 years, more than $1 billion will be invested through capital markets, shareholder returns, and the group’s profits in technology development and modernization of key production lines. These investments will improve production quality, introduce newer and more competitive products, and enable a stronger presence in global markets.
6. Reforming the management and organizational structure
Kerman Motor’s sixth plan for the future management of Saipa is to create management stability and organizational agility, eliminate and liquidate redundant and unrelated companies, make unproductive assets productive, and inject the resulting resources into the company’s production and liquidity cycle.
These measures will lead to organizational agility, transparency, and increased speed in decision-making, for the benefit of the end consumer and industry activists. All of these programs are the result of more than a year of specialized study and review by Kerman Motor experts, and their implementation, given the current situation of SAIPA and the country’s conditions, requires strong will and serious decision-making from the government.
However, Kerman Motor is awaiting the final decision of the government, especially the esteemed presidency. In the event that the appropriate decision is not made by the authorities on this issue, Kerman Motor Company, at its discretion, is prepared to divest approximately 9 percent of its existing shares in Saipa Company and use the resulting resources to develop its strategic plans to become the most valuable automaker in the Middle East and achieve its lofty goals.
