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1 Background information
1.1 The Saipa Group
Societe Annonyme Iranienne de Production Automobile (Saipa) was established in 1966, as an Iranian-based car company in Tehran. Their focus lay initially in producing cars; to cater for a predominantly Iranian audience.
In 1990, Saipa decided to consolidate their activities by forming the Saipa Group; which has grown to house a mixture of 86 separate companies, sub-divisions and subsidiaries; with 8,000 employees ([16] Zawya, 2009; [17] Saipa, 2009). With 48 per cent of the group being owned by the Iranian Government, Saipa accounts for 54 per cent of Iran's output, according to Industrial Development and Renovation Organization of Iran [8] (2008) and [9] Just-Auto (2009). Whilst [14] Shahmanesh-Banks (2004) cites that Saipa produces more new models than any other Iranian car company, competitive ranking remains a fiercely contested issue. [9] Just-Auto (2009) and [12] Press TV (2009) report Saipa as being the second largest national car manufacturer in Iran, after Iran Khodro Company.
1.2 Saipa Group exports
Saipa's exporting activities to some 40 countries are becoming of increasing importance. The value of exports by Saipa and its affiliates surpassed US$150 million, in the last Iranian calendar year, which ended 20 March 2009 - showing a 30 per cent rise over its preceding year. Commercial vehicles and cars accounted for 50 and 40 per cent of the exports, respectively. Spare parts and technical-engineering services had a 10 per cent share in the value of exports. The company has set a goal of US$300 million exports for the current year through expanding its target markets to 40 countries, ([11] Mehr News Agency, 2009).
1.3 Iranian automotive industry
The Iranian automotive market has continued to grow from strength to strength. Data analysed by [13] Prime Vistas Research and Consulting (2007) and [4] Dehqan (2009) rank Iran as the 16th biggest automaker in the world. [4] Dehqan (2009) also goes onto state that the Association of International Automobile Manufacturers 2008 report, positions Iran as being the seventh biggest auto manufacturer in Asia and:
[...] excluding commercial vehicles, Iran ranked as the 14th biggest producer of cars in the world above the Czech Republic, Poland, Belgium, Italy and Turkey.
This makes Iran the largest automotive producer in the Middle East, with a...