| Summary: | The index of development of every country is measured by the amount of its industrialization. The comparative statistics show that the level of industrial GDP in developed countries is much higher than in Iran. The influence of automotive industry on the redevelopment of satellite sectors such as steel, rubber, Polymer, petrol and petrochemicals, electrical and electronics, ceramics and etc. is very high. In view of the fact that the cluster system defines a collection of united small and medium enterprises which are distributed in a particular region, these companies do face with global and local
threats, and opportunities in manufacturing of their products. In particular, the auto industry as one of the most important sector in the region qualifies for the
application of clustering method, in order to unify efforts of the SME companies. A suitable cluster model if carefully applied, can result in increasing output and quality of parts, decreasing overhead costs, specialization of skills, increase of employment, equal opportunities and etc.
This paper represents a thorough study of all SME’s for auto parts manufacturers in North West province of Azerbaijan. On the basis of these finding and the studies carried out, a suitable Cluster model within UNIDO
requirements has been devised and developed, to suit the needs of all SME’s auto parts manufacturers in the region. The paper discusses and analysis the cluster model in details.
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