Ford Otosan Will File A Lawsuit Against Dealers Involved in Abuse

Ford Otosan has decided to file a lawsuit against the dealers who are involved in the abuse of dealer receivables and fail to pay their debts.

The statement made to the Public Disclosure Platform (KAP) is as follows: “As explained in our financial reports dated June 22, 2021, which was announced to the public on August 6, 2021, regarding the misconduct that is the subject of our material disclosure dated February 30, 2021, our company, together with our internal audit unit, is an independent expert on this subject. Work on the fraud audit service we received from an institution has been completed.

In the report received from the independent institution, it has been confirmed that we do not have a receivable risk beyond the amount specified in our financial reports dated March 30, 2021, which was announced to the public on April 31, 2021 and that the findings obtained as a result of the independent audit activity are in line with the findings obtained in the internal audit study. In this direction, our company has decided to terminate our business relations with the dealers involved in the fraud process, within a certain plan, taking into account the conditions of these dealers to accept the debt, pay and cooperate with our company.

The share of sales to these dealers in the total turnover of our company in 2020 is approximately 3%, and our company's activities and customer services will continue without any disruption, through our existing dealers operating in the same regions as these dealers, and new dealerships that will join us in this process. In the financial statements we announced to the public on August 6, 2021, a provision for doubtful receivables of TL 323 million was reserved.

Approximately 225 million TL of the said receivable consists of the receivables from the dealers who refused to pay this debt, and it was decided to file a claim against these dealers. Additional lawsuits may be filed depending on the approach of other dealers for which provision for doubtful receivables has been set aside to pay their debts to our company. In the event that important developments that have important consequences regarding the current and important legal processes that will be initiated and that enable a concrete and clear judgment emerge, these developments will continue to be shared with our investors.