SEC quizzes Ford on ‘terrorist’ state sales
SEC quizzes Ford on ‘terrorist’ state sales
Copyright The Financial Times Limited 2006
Published: November 24 2006 20:54 | Last updated: November 24 2006 20:54
The Securities and Exchange Commission has raised concern about the investment risks of US companies doing business in countries deemed to be terrorist-supporting states by asking Ford Motor, and possibly others, about its dealings in Iran, Sudan and Syria.
The enquiries emerged in a series of letters dating back to July between the SEC and Ford’s chief financial officer, Don Leclair.
The SEC asked the Detroit-based carmaker to demonstrate that its "reputation and share value" were not at risk as a result of business dealings in the three countries. All three countries are designated as state sponsors of terrorism by the US state Department.
Ford replied that its interests, comprising mainly Ford, Land Rover and Mazda dealerships, were small relative to its worldwide operations. Ford owns 33 per cent of Mazda.
Referring to Syria, the carmaker added that "our limited and lawful business activity is public information, and we have not been able to identify any resulting negative impact on our reputation or share value".
Ford said it had no reason to believe that vehicles sold by its dealerships in recent years had gone to the Syrian government or government-controlled groups.
Referring to Mazda’s business in Iran and Syria, it said “we do not believe that this de minimis business activity by Mazda impacts Ford's reputation or share value, or the value of Ford's ownership interest in Mazda”.
The SEC specifically asked Ford whether the Syrian government or government officials had an interest in the dealerships that sell its vehicles. It also asked the company to confirm that business volumes had not changed significantly in the past three years.
The SEC declined to comment on Friday whether it was satisfied with Ford's responses, and whether it was asking other companies similar questions.
But an industry source said such queries had been directed to several prominent multinationals. The SEC has reportedly asked European and US oil companies to tell investors about the risks they face from operations in countries that Washington has identified as supporting terrorism.
The US has modest direct trade links with the three countries. According to the Commerce Department, two-way trade with Syria totaled $479m last year, Iran $271m and Sudan $126m.
Cars and trucks were the second biggest export to Syria, after farm products. The US’s main export to Iran is tobacco.
Copyright The Financial Times Limited 2006
Published: November 24 2006 20:54 | Last updated: November 24 2006 20:54
The Securities and Exchange Commission has raised concern about the investment risks of US companies doing business in countries deemed to be terrorist-supporting states by asking Ford Motor, and possibly others, about its dealings in Iran, Sudan and Syria.
The enquiries emerged in a series of letters dating back to July between the SEC and Ford’s chief financial officer, Don Leclair.
The SEC asked the Detroit-based carmaker to demonstrate that its "reputation and share value" were not at risk as a result of business dealings in the three countries. All three countries are designated as state sponsors of terrorism by the US state Department.
Ford replied that its interests, comprising mainly Ford, Land Rover and Mazda dealerships, were small relative to its worldwide operations. Ford owns 33 per cent of Mazda.
Referring to Syria, the carmaker added that "our limited and lawful business activity is public information, and we have not been able to identify any resulting negative impact on our reputation or share value".
Ford said it had no reason to believe that vehicles sold by its dealerships in recent years had gone to the Syrian government or government-controlled groups.
Referring to Mazda’s business in Iran and Syria, it said “we do not believe that this de minimis business activity by Mazda impacts Ford's reputation or share value, or the value of Ford's ownership interest in Mazda”.
The SEC specifically asked Ford whether the Syrian government or government officials had an interest in the dealerships that sell its vehicles. It also asked the company to confirm that business volumes had not changed significantly in the past three years.
The SEC declined to comment on Friday whether it was satisfied with Ford's responses, and whether it was asking other companies similar questions.
But an industry source said such queries had been directed to several prominent multinationals. The SEC has reportedly asked European and US oil companies to tell investors about the risks they face from operations in countries that Washington has identified as supporting terrorism.
The US has modest direct trade links with the three countries. According to the Commerce Department, two-way trade with Syria totaled $479m last year, Iran $271m and Sudan $126m.
Cars and trucks were the second biggest export to Syria, after farm products. The US’s main export to Iran is tobacco.
posted by Carlos T Mock @ 8:32 AM
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