The Iranian auto industry warns that U.S. sanctions have left carmakers on the verge of bankruptcy.

The Mehr News Agency reports that the industry has called on the government to assist companies with the crisis in automotive parts and continually rising costs.

The industry has called on the government for bailout money to invest in the industry.

The latest round of U.S. sanctions, which go into force on July 1, target automotive parts and all services linked to automobile manufacturing.

Iranian industry officials have predicted the price of auto parts will rise 15 to 40 percent.

A report on Mehr indicates that South Koran companies, which have continued dealing in automotive parts with Iran in recent years, now indicate they will have to curtail that business under the new U.S. sanctions.