US launches antitrust probe into California automaker agreement

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The U.S. Justice Department is investigating whether the decision of four automakers in July to reach a voluntary agreement with California to ...

WASHINGTON: The U.S. Justice Department is investigating whether the decision of four automakers in July to reach a voluntary agreement with California to adopt state emissions standards violated antitrust law, people briefed on the matter said on Friday.

In doing so, the automakers are defying the Trump administration's effort to strip the state of the right to fight climate change by setting its own standards. Automakers fear years of legal battles and want to ensure certainty over the requirements they will face nationwide.Ford said on Friday it had"received a letter from the Department of Justice and will cooperate with respect to any inquiry." Honda said it was cooperating with the Justice Department.

Nichols did not immediately respond to a request for comment. California Attorney General Xavier Becerra said the state"will continue its advance toward a cleaner future. We're prepared to defend the standards that make that promise a reality." Volkswagen said in a statement it is in regular contact with U.S. authorities on several matters, but does not comment on specific private communications.On Thursday, Reuters reported the administration was moving forward with plans to strip California of its waiver under the Clean Air Act to set its own vehicle emissions rules and requiring a rising number of zero emission vehicles.

 

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