Ford being targeted by environmental groups

Green activists target Ford
Environmentalists to press concerns at annual meeting
By JOSEPH SZCZESNY Press Automotive Editor


Activists plan to use the Ford Motor Co.’s annual shareholders meeting this week to press the company for changes in its environmental policies and practices.
Green Century Capital Management of Boston will present at the meeting a proposal that would require Ford to disclose how much it has spent on lobbying federal offi - cials in support of weak fuel economy standards.
“The report should present the business case for these activities in light of long-term economic trends and the company’s widely publicized plans to increase the fuel economy and reduce the environmental impact of its vehicles,†said the resolution submitted by Green Capital.
In 2004 alone, Ford spent more than $7 million lobbying Congress and the Bush administration to support a proposal that allows Ford to increase the size of its vehicles to avoid meeting higher fuel economy standards, Green Capital said in support of the resolution.
“We are concerned this money has been spent supporting a short-term strategy that does not serve the needs of our company or of the American public,†said Green Capital’s supporting statement.
Another resolution submitted by a shareholder from San Francisco, Dr. Russell Long, would link executive compensation to progress in reducing the amount of greenhouse gas emissions from Ford’s newest vehicles. As emissions drop, executives would be eligible to collect larger bonuses.
“We believe that the global trend towards adoption of regulations to improve fuel effi - ciency and curb greenhouse gas emissions from automobiles will be one of the key drivers determining the competitiveness in the automobile industry over the next few decades,†Green’s resolution said.
A separate resolution asked Ford to publish a comprehensive report each year on global warming that would help keep shareholders informed about the company’s policy actions.
Ford’s board of directors has issued statements recommend- ing that shareholders vote against all three proposals.
“Ford takes the issue of global warming very seriously, and our actions show were are investing heavily in innovative technologies and in improving existing technologies in order to reduce greenhouse gas emissions,†Ford’s directors said in a statement recommending that shareholders vote “no†on the compensation proposal.
“Ford compensates its executives based on a number of factors designed to motivate management to plan for Ford’s long term success,†the directors said.
The board also said the proposal calling for disclosure of all lobbying fees related to fuel economy standards was too narrowly focused.
Shareholders will consider a separate resolution to prohibit the company from offering health care benefits to domestic partners of gay employees and another resolution that would separate the job of chairman and chief executive offi cer.
Ford has been a target of anti-gay activists, who have attacked the company’s decision to advertise in gay publications.