The Department of Justice is inquiring into a pact among four automakers that has them abiding by California's stricter emission standards
Traffic along Interstate 880 in 2019 in Oakland, California. The State of California and four of the largest automakers in the world—Ford, VW, Honda and BMW— have struck a deal to reduce auto emissions in the state ahead of the Trump administration'sThe U.S. Department of Justice has opened an antitrust inquiry into four automakers’ agreement to abide by California’s stricter emission standards rather than the Trump administration’s proposal to ease federal fuel-economy regulations.
Separate rules would force manufacturers to calibrate their production and mix of vehicles in the California and 13 states differently from what they sell in states following the federal standards. That would add costs and could hurt profitability. In a separate letter, lawyers for the U.S. Department of Transportation and the Environmental Protection Agency urged Mary Nichols, chairman of the California Air Resources Board, “disassociate her agency from the agreement” with Ford, Honda, Volkswagen and BMW.
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