January 23, 2004

The Department of Environmental Quality (DEQ) has reached a $2.75 million settlement with Ford Motor Company (Ford) wherein Ford will reimburse the state for cleanup costs incurred in 2001-2002 to remove nearly 7,000 barrels of waste buried in wetland areas at the former Fabco Fabricating facility (Fabco) near Onsted.

Evidence found at Fabco during the state’s cleanup efforts, together with information obtained from former Fabco employees, confirmed that Ford had historically sent barrels of waste to Fabco for disposal.

Upon being informed of its liability for the state’s costs, Ford entered into negotiations with the DEQ and an agreement was quickly reached.

“Ford is to be commended for expeditiously resolving this matter,” remarked DEQ Director Steven Chester. “Accepting this settlement is in the best interest of the public, avoids costly and prolonged litigation, and recovers the taxpayers’ money,” he added.

Although not part of the settlement, Ford has also agreed to implement further cleanup work at Fabco necessary to protect public health and the environment. That work will commence in 2004 and will be supervised by the DEQ.

Editor’s note: DEQ news releases are available on the department’s internet home page at www.michigan.gov/deq.

Revised January 23, 2004 by Scott Olin