The aim of this study was to investigate the structure of small and medium auto – parts manufacturing enterprises and to determine the interrelationship of them, and their relationship with the suppliers, the market and financial institutes and creditors, and the scientific research centers in the form of industrial clusters in order to introduce the cluster development model. In this research project, a field research study of a cluster has been done by using various data collection methods such as questionnaires, interviews, observations and objective measurements in order to analyze the value chain of production processes and determine the matrix of strengths, weaknesses, opportunities and threats of cluster (SWOT). In continuation of the program, by using cluster modeling tools within UNIDO framework, the proposed cluster model of the auto parts industry for Tabriz was devised and developed. The findings have shown that small and medium enterprises of auto-parts, due to lack of mutual cooperations for producing common products, unavailability of sufficient capital and proper investments and also weak communications and weak business to business relationships, have not been able to take advantage of research programs available for them and this has resulted in diminishing businesses and many bankruptcies. If these enterprises can put their businesses into a healty and effective framework such as cluster strategy models, it would be possible to bring about a healthy situation within ٣ to ٤ years. The model produced can be easily adapted to many other different clusters.