Auto Industry's Industrial Policy is The Neglected: A Review of the Problems in the Automotive

Document Type : View Point Article

Authors

1 Associate Professor, Faculty of Management and Industrial Engineering, Malek Ashtar University of Technology, Tehran, Iran.

2 PhD in Industrial Management, Faculty of Management and Industrial Engineering, Malek Ashtar University of Technology, Tehran, Iran.

Abstract

Iran's automotive industry has always had problems that at certain times these problems appear more and more. Every policymaker and official in different governments has had different analyzes about this industry and consequently suggested different solutions, but despite all the efforts, today we see that not only the problems have not been solved but they have intensified. In this article, we try to look at the problems from the perspective of the main stakeholders (customers, automakers, component makers, banks, government), as well as review the "common beliefs of industrial policymakers and analysts" and reflect on common beliefs. In the following, we will discuss some of the realities in the automotive industry and try to identify the important points that have been neglected in these beliefs. We will look for solutions to get out of the problems and according to the existing analysis, we will examine three alternative policies for the automotive industry. Then we suggest the appropriate policy with economic-political conditions for the automotive industry entitled "New industrialization through intelligent support of domestic production". The specific suggestion of this article is that the adoption and correct application of "industrial policies" is the main way to promote the country's automotive industry. In this regard, important policies are: "demands aggregation", "commonality", "avoid diversity in core components and try to focus on shared platforms".

Keywords

References

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Journal of Improvement Management
Volume 14, Issue 3 - Serial Number 49
November 2020
Pages 149-164

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History

  • Receive Date: 24 November 2020
  • Accept Date: 24 November 2020

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