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Minister of industries and mines has ordered L-90 project
to be stopped and it has been decided that as long as Renault Company has not
accepted Iran’s proposal for having a 20-percent share of the vehicle’s
exports, the project will remain in limbo. Renault Company has not yet
responded to Iran’s request. The L-90 project has been challenged by domestic
experts and economic activists since the first day that its contract was
signed and it seems that the row has now reached a decisive point. In the
following interview we have asked Hamid Reza Katouziyan, member of Majlis
Industries Commission for his viewpoints on the project. He was one of the
most outspoken critics of the contract.
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If we succeeded to export part of
our cars, Renault would have to be more careful about quality of cars
that it would produce in Iran. |
L-90 project has been halted on the order of minister of
industries and mines. Do you consider this a positive development or negative?
Positive, because there were many problems with the
contact. We worked on it at Majlis Research Center and it was decided that the
contract needed 12 amendments. After discussions with Mr. Jahangiri, former
minister of industries and mines, and Mr. Haddad Adel, the Seventh Majlis
speaker, a working team was set up. Mr. Tavakkoli represented Majlis Article
90 Commission on behalf of Mr. Facker in the said team and it was decided that
four articles of the contract should be amended to finalize the contract.
Three articles were amended, but one article remained unchanged. Renault
Company resisted changes in that article while it was very critical for our
country. We asked Renault Company for permission to export 20 percent of
domestic production, but Renault officials believe that they should connect us
to international markets. What Iran is asking for is just to have the right to
be present at international markets. However, Renault officials are treating
the project in a colonialistic manner and cannot even pass over that 20
percent.
But many contracts have been signed with domestic parts
manufacturers for production of L-90 and some of them have already started
production and will suffer losses as a result of suspension of the project.
We cannot auction our industry and economy because a
foreign company has decided to produce cars in Iran and we must not give in to
their demands. The whole contract was to be implemented in three years. We
have communicated our conditions to Renault Company and are waiting for their
final response.
What do you think will be Renault’s reaction?
We think if Renault officials think wisely before making a
decision, the contract will also realize the interests of the Iranian side.
But you cannot cancel a signed contract. If you cancel it
unilaterally, the French party to the contract will be entitled to sue you.
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In the absence of international
automakers and production of cars conforming to global standards, our
automobile industry will remain in the clutches of a mafia which will
continue to produce low-quality automobiles. |
From the beginning, they should not have signed a contract
that we have to revoke. At the time when the contract was signed, Mr. Veiseh
and Mr. Jahangiri were in charge and they made this mistake. If somebody is to
be taken to task, it is those two gentlemen, who wronged their country. You
should not threaten us because we are defending the interests of our nation
and country. I complained to Mr. Veiseh, the then head of Industries
Development and Renovation Organization, for signing this contract. Why Mr.
Jahangiri signed the contract? We raised 20 objections to the contract, but
they went on with it. Ask them why despite the fact that Katouziyan, Dr.
Tahmasebi, Dr. Tavakkoli, and Dr. Haddad Adel urged them during Article 90
Commission meetings not to sign the contract, why did they insist to sign it?
Why every time that Katouziyan criticized a contract, they sped up the signing
process? I have been saying this for more than three years. Mr. Tahmasebi has
been urging Renault Company to call off the contract since the day he was
appointed as minister, but Renault does not accept because they are pursuing a
colonialistic contract and are not willing to give us a 20-percent share of
production, but want to capture 100 percent of our market.
But it is said that such measures will make other foreign
automakers to avoid investing in our country.
Leave such forecasts to the future. This is not the case
and such claims are nonsense. All foreign producers have interests in our
country and none of them is ready to give up Iran’s lucrative market. I assure
you that none of the foreign producers will leave our country. All our efforts
should be directed at realizing Iran’s interests. We must not allow another
contract like Turkmenchai to be signed again. We must not close our eyes and
tell them do everything they want with this country.
If Talbot contract had to been rescinded, we were still
grappling with it. Don’t you remember that Paykan has been overshadowing our
country’s industries for 40 years? Renault is not coming for one or two years.
The company intends to sell us L-90s for 20 years and we say that if Renault
Company intends to sell L-90 in our company, there is no objection, but they
should give us a share of their foreign markets. We have not asked for much,
only 20 percent.
Then what about low quality of domestically manufactured
cars?
If we succeeded to export part of our cars, Renault would
have to be more careful about quality of cars that it would produce in Iran.
This is a positive point for part manufacturers and people. In that case,
people will ride a quality car and part makers will get used to producing
high-quality spare parts. We hope that they will observe our concerns during
negotiations and we promise to support L-90 production in Iran.
However, in the absence of international automakers and
production of cars conforming to global standards, our automobile industry
will remain in the clutches of a mafia which will continue to produce
low-quality automobiles. Paykan was produced in Iran for many years and
perhaps Pride or other sedans will share Paykan’s destiny. Debates about
automobile production are not serious and I am of the opinion that a mafia has
been controlling automobile industry for years, preventing advancement of the
industry. I believe that we must do something basic to prevent rent seeking in
this industry. I also believe that preventing implementation of such
contracts, at any stage; will be to the benefit of the country. |
