Michelin

Michelin has a major U.S. presence (http://www.michelin.com/)

“Temporary sanctions relief hasn’t yet translated into an economic turnaround in Iran. But at the Melal Hotel, business hasn’t been this good in years. Employees of French drug maker Sanofi Aventis SA and tire maker Cie. Générale des Etablissements Michelin mingle on a recent morning among the still lifes and faux-leather chairs of the hotel dining room...Businesses exploring the Iranian market ‘do so at their own peril right now,’ U.S. President Barack Obama said last month, ‘because we will come down on them like a ton of bricks.’ But that hasn’t stopped companies from boosting their presence or sending in advance teams—essentially making exploratory visits in the hopes that sanctions may be lifted further and permanently... Sanofi and Michelin decline to comment.” (Wall Street Journal, “As Iran Sanctions Ease, Western Firms Seek a Way In,” 3/27/14) (http://www.unitedagainstnucleariran.com/company/sanofi-sa) (http://stream.wsj.com/story/latest-headlines/SS-2-63399/SS-2-493702/)

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"International firms racing to do business with post-sanctions Iran could jeopardize their contracts with the the United States military. Three Republican lawmakers who serve on the House Armed Services Committee warned French firms last week that dealings with Iran could make it impossible to do business with the Pentagon in the future. ‘We write to you with grave concern about what we see as the unraveling of our sanctions regime involving the nuclear weapons, ballistic missile, and terrorism activities of the Islamic Republic of Iran,’ wrote Reps. Doug Lamborn (R-CO), Trent Franks (R-AZ), and Joe Heck (R-NV), in a Feb. 18 letter to Defense Secretary Chuck Hagel, obtained by The Daily Beast. The lawmakers noted that over 100 French business executives traveled to Iran in early February…But one of the firms represented at the meeting also has earned over $2.4 billion from contracts with the U.S. military since 2007 – Michelin. The lawmakers singled out Michelin and called their participation in the Iran trip ‘greatly troubling.’ ‘We urge you to direct the Department to make clear to Michelin that any business with the Islamic Republic of Iran would make further contracts with the Department of Defense impossible,’ the lawmakers wrote to Hagel. They also asked the Pentagon to report back on how the U.S. government could terminate existing contracts with Michelin, if it wanted to, as well as what would be the costs of such terminations. A Congressional aide close to the issue said that if Michelin does enter into new business with Iran, lawmakers would try to use the annual defense appropriations and authorization bills to cut off the flow of U.S. taxpayer money to the French company…The Pentagon did not respond to a request for comment and has not yet responded formally to the lawmakers’ letter…Michelin's Managing Chairman Jean-Dominique Senard told The Wall Street Journal earlier this month that the company wants to resume business in Iran if sanctions are lifted and does not want to lose out to other companies preparing to take advantage of the new opportunities there. ‘What I don't want is that when trading with Iran eventually resumes we discover that other companies have profited from a situation in which we have toed the line,’ he said. ‘That would be very upsetting.’” (The Daily Beast, “Lawmakers Warn Michelin Over Iran,” 2/24/14) (http://www.thedailybeast.com/articles/2014/02/24/lawmakers-warn-michelin-over-iran.html)

“Michelin is keen to resume exporting its car and truck tires to Iran once international sanctions on trading with the country are lifted and is keeping a watchful eye on competitors that might try to get a head start by bending the rules. Cie Générale des Etablissements Michelin was part of a delegation of more than 100 French company executives that visited Tehran last week to sound out the local authorities over prospects for a resumption of normal commercial relations between Iran and the rest of the world…’We are extremely respectful of the international embargo rules, but we need more visibility on what's happening,’ Michelin's Managing Chairman Jean-Dominique Senard told The Wall Street Journal Tuesday. Iran was Michelin's biggest market in the Middle East until international sanctions over Iran's nuclear ambitions were imposed. Its exports to Iran were eventually phased out in 2011…Mr. Senard said Michelin was treading cautiously. ‘What I don't want is that when trading with Iran eventually resumes we discover that other companies have profited from a situation in which we have toed the line. That would be very upsetting.’ Meanwhile, Michelin said it would cushion the blow to shareholders of a 28% decline in net profit last year by increasing its dividend as it forecast a recovery in sales' volumes this year.” (Wall Street Journal, “Michelin Eager to Resume Iran Trade,” 2/11/14) (http://online.wsj.com/news/articles/SB10001424052702304558804579376194084691658)