Minister of Transport Yisrael Katz has instructed the ministry director general to notify Ford Motor Co. (NYSE: F) that it was initiating a review and hearing, which when completed may result in the banning of Ford imports. Delek Automotive Systems Ltd. (TASE: DLEA) is the authorized Ford importer.
Katz said that Ford was harming competitiveness and Israeli government policy. On his Facebook page, Katz said that he was making the decision known to the public, in case Ford tried to prevent importers from selling its cars at a larger discount.
Katz said, "We're talking about competition in which 15 families control a NIS 30 billion a year market. Leasing companies receive steep discounts, which private consumers pay." He added, "It is my job to serve you, and I promise not to relent until the entire motor vehicle market is opened to full competition and prices and the cost of living come down."
Katz reiterated his call to the public not to buy new cars until prices come down.
Published by Globes [online], Israel business news - www.globes-online.com - on May 5, 2013
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