Lucas under fire in US over Gulf war equipment
Tuesday 18 January 1994
The company said it had been co- operating with the US authorities for 18 months in an investigation into components supplied by Lucas AUL, a New York division bought in two parts in 1986 and 1989. Lucas said appropriate provisions had been made, thought to be about pounds 12m to pounds 14m. But neither inquiry is finished and the company admitted that the final cost could be more - or less - than it had set aside.
A report in the Wall Street Journal claimed that US prosecutors were seeking at least dollars 20m ( pounds 13m). Far more importantly, it could hinder the company's chances of future Pentagon business at a time when Lucas is emerging from recession and about to embark on a new era under its chief executive-elect, George Simpson.
An out-of-court settlement seems likely, and a Lucas spokesman hoped the incident would not hit future business because the company had responded quickly to the allegations. Problems at AUL occurred before it was bought, and testing procedures improved, he said. Lucas embarked on a damage-limitation exercise yesterday to calm analysts and found that its share ended the day 3p up at 211p.
The more serious inquiry concerns Lucas AUL's quality control in the making of launch equipment for Maverick aircraft missles. US authorities began investigating the Maverick after a missile mistakenly killed US marines in Gulf War 'friendly fire'. Lucas said the Pentagon had confirmed that its equipment was in no way responsible.
- 1 East 17 bandmember Brian Harvey in 'very desperate situation’
- 2 Is this bridge haunted by the ghost of nu rave?
- 3 Woman filmed launching racist tirade against men on the Tube for speaking in 'own lingo'
- 4 The West has it totally wrong on Lee Kuan Yew
- 5 Scientists have discovered a simple way to cook rice that dramatically cuts the calories
East 17 bandmember Brian Harvey in 'very desperate situation’
Vladimir Putin says Russia will fight for the right of Palestinians to their own state
Is this bridge haunted by the ghost of nu rave?
Woman filmed launching racist tirade against men on the Tube for speaking in 'own lingo'
Saudi Arabia says it won't rule out building nuclear weapons
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
JK Rowling responds to fan tweeting she 'can't see' Dumbledore being gay
Jeremy Clarkson sacked live: Alan Yentob 'wouldn't rule out' ex Top Gear host's BBC return
David Cameron calls Labour 'hopeless, sneering socialists' while announcing 7-day NHS plans
The West has it totally wrong on Lee Kuan Yew
Revealed: Putin's army of pro-Kremlin bloggers
iJobs Money & Business
Negotiable: Recruitment Genius: To provide a prompt, friendly and efficient se...
Negotiable: Recruitment Genius: You will be the first point of contact for all...
£18000 - £24000 per annum + benefits: Ashdown Group: HR, Payroll & Benefits Of...
£35000 - £38000 per annum + benefits : Ashdown Group: A highly successful, int...