FOR IMMEDIATE RELEASE	ENR

MONDAY, JUNE 8, 1998                                                                                                                                   (202) 514-2008

                                                                                                                                                                                 TDD (202) 514-1888

									  EPA (202) 260-4355




FORD MOTOR TO SPEND $7.8 MILLION IN CLEAN AIR ACT SETTLEMENT


AND RECALL 1997 ECONOLINE VANS





	WASHINGTON, D.C. -- Ford Motor Company will spend $7.8
million to settle allegations that it violated the Clean Air Act
by illegally installing a device which defeats the emissions
control system in 1997 Ford Econoline vans, the Department of
Justice and the Environmental Protection Agency announced today. 
Today's announcement affects 60,000 vans. 




	"This settlement means cleaner air for the American people,"
said Attorney General Janet Reno. "It will help prevent thousands
of tons of nitrogen oxide from being released into the
atmosphere.  It also sends a message to the automobile industry:
You cannot tamper with our environment."




	EPA Administrator Carol M. Browner said, "This action is
another step taken by this Administration to ensure that
companies fulfill their responsibility to protect public health
and environment.  High levels of smog can cause breathing
problems for millions of Americans and aggravate asthma attacks
in our children.  We are working to reduce harmful levels of smog
through more protective public health standards and through
enforcement actions like the one we are taking today."




	The federal government said the claims against the automaker
involve the illegal use of a defeat device, in this case a
sophisticated electronic control strategy ("strategy") designed
to enhance fuel economy.  According to EPA, the system caused
smog-causing nitrogen oxide emissions to increase well beyond the
limits of the Clean Air Act emission standards when the vans are
driven at highway speeds.




	EPA estimates the settlement will prevent thousands of tons
of nitrogen oxide from being released into the atmosphere.  The
smog caused by nitrogen oxide can aggravate asthma and cause
other respiratory problems in humans.  




	The consent decree filed today in Federal District Court in
Washington, D.C. requires Ford to recall all of the affected
Econolines in order to deactivate the strategy at an estimated
cost of $1.3 million, pay $2.5 million in civil penalties,
purchase 2,500 tons of nitrogen oxide credits valued roughly at
$2.5 million to offset the excess emissions, and spend $1.5
million on projects designed to reduce future harmful pollutants
in the air.  If Ford does not succeed in recalibrating at least
70 percent of the vans to deactivate the illegal strategy,
additional offsets will be required.




	EPA discovered the existence of the illegal strategy when
the vans were being driven at speeds greater than 40 mph.  Ford
voluntarily stopped the sale of the Econolines and began
deactivating the strategy in March of last year when notified by
EPA that the affected vans may be in violation of the Clean Air
Act.  The company also voluntarily implemented a special service
instruction to dealers to deactivate the strategy in the vans and
cooperated with EPA and DOJ during the investigation.  About 25
percent of the 60,000 Econoline vans equipped with the strategy
have been captured through Ford's special service instruction to
date.  The remainder of the vans will be recalled.




	Owners of the affected vehicles will receive a recall
notification letter from Ford.  The company will perform all
recall work free of charge at the convenience of the vehicle's
owner.




	A notice of the proposed settlement will be published in the
Federal Register, beginning a 30-day public comment period and
must be approved by the court.




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