US opens probe of 4 automakers over California emissions pact
The US Department of Justice is probing California’s agreement with four automakers on fuel efficiency standards, automakers said Friday, while the Trump administration called on the state to spike the mileage plan.
The developments together escalate a burgeoning conflict over environmental laws between Washington and California, the nation’s biggest economy.
A July agreement between the state and the four automakers circumvented US President Donald Trump’s efforts to weaken the strict fuel economy standards enacted by his predecessor Barack Obama.
The California policy requires new cars to meet a standard of 50 miles per gallon, (4.7 liters per 100 kilometers), up from the current 37 mpg, by 2026.
The move was broadly consistent with a cornerstone of Obama’s climate change strategy and was initiated by the state in response to the Trump administration’s efforts to reverse the Obama policy.
California has a federal waver that permits it to enact stricter tailpipe standards, thereby limiting the types of cars that can be sold in the nation’s most populous state. California is also aligned with about a dozen other states that likewise prefer stricter emissions standards.
Of the four companies involved, BMW, Ford and Honda confirmed receiving inquiries from the Department of Justice. A Volkswagen spokesman declined to comment.
The Alliance of Automobile Manufacturers, a trade group, has complained the original Obama standards were overly strict but has warned that protracted litigation could threaten the industry, which relies on long production cycles.
The Justice Department sent letters to the four companies within the past two weeks, according to The Wall Street Journal, which first reported on the probe.
Officials are concerned the agreement with California was negotiated in the fashion of a cartel and could limit competition, The Journal said.
The Justice Department did not respond to a request for comment.
California Governor Gavin Newsom called the probe “blatant political interference,” taking a swipe against Trump on Twitter.
“He can’t beat China so he’s acting like them -- using his bureaucracy to attack our private industries,” Newsom said. “CA will not be threatened.”
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