For both policymakers applying sanctions and those seeking to resist sanctions, better policy outcomes require supply-side thinking.
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All tagged manufacturing
For both policymakers applying sanctions and those seeking to resist sanctions, better policy outcomes require supply-side thinking.
Falling output over the past two years has made clear the limits of the Iranian government’s ability to grow the automotive sector without foreign partnerships and new investment.
◢ The combination of reimposed sanctions, a slowing economy, and a devalued currency have put Iran’s automotive sector under severe pressure With nearly 1 million jobs linked to the automotive industry, the price of a new car could be even more important than the price of oil for the Iranian economy. In an interview with Bourse & Bazaar, Saeed Madani, the former CEO of SAIPA, warned that price controls are squeezing state-owned automakers.
◢ Unilever has entered into a new joint venture with Iran's Golestan Company. The partners will develop and manufacture new food brands and product lines for the Iranian market.
◢ The decision to enter into a joint venture reflects a rising trend among international FMCG companies active in Iran. A combination of political circumstances, commercial drivers, and consumer preferences have encouraged ownership of local manufacturing interests.
◢ Automation will fundamentally change labor markets around the world, with the deepest impacts being felt in the manufacturing sector.
◢ While foreign direct investment in Iran will support job growth in manufacturing in the near-term, eventually the push for efficiency gains will include automation and workforce reductions.
◢ Iran Khodro (IKCO) announced the re-entry of its French partner PSA Peugeot Citroen into the Iranian automobile market through a new joint venture.
◢ The deal will see 30 percent of jointly produced cars in Iran exported to regional markets. As Iran Khodro’s managing director Hashem Yekke-Zare emphasized, the deal promises to create a regional auto manufacturing hub in the Persian Gulf.