GM Reaches Agreement over Funding Mercury Switch Recycling Program

A settlement has been reached between 12 states and the bankruptcy trust established to resolve claims against the former General Motors over funding for a program to dispose of mercury-containing switches. The settlement addresses mercury switches that were included in GM vehicles before the company dissolved following bankruptcy protection.

The 12 states that took part in the suit were Arkansas, Illinois, Indiana, Iowa, Maine, Maryland, Missouri, New Jersey, North Carolina, Rhode Island, Vermont and Massachusetts.

The suit was filed by Attorneys General by the 12 states in November 2009.

“This step will help provide the funds necessary to retrieve these components from cars before they go out of commission,” says Illinois’ Attorney General Lisa Madigan. “It is an important part of our efforts nationwide to reduce the level of mercury in the environment, which poses a health risk to everyone, but especially to children.”

Under the Agreed Order entered in Bankruptcy Court for the Southern District of New York June 22, the 12 states will share in $2.845 million set aside by “old” GM to a program that will assist the participating states in collecting and recycling mercury-containing switches. The money will be pooled with funds expected from other carmakers to run the mercury switch removal program.

The money will be paid to End-of-Life-Vehicle Solutions Inc. (ELVS), a not-for-profit corporation that operates the National Vehicle Mercury Switch Recovery Program, a voluntary, national program established in 2006 by the United States EPA, automobile manufacturers, and related industries.

In a separate agreement, the company now known as General Motors Co. (New GM), committed to making an additional contribution of $4.5 million to the recovery program to cover Old GM’s share of the national program costs through 2017.