BMW, Ford, Honda And VW Facing Antitrust Investigation For Striking Emissions Deal With California

The Trump administration’s war of California continues as Reuters reports lawyers for the Environmental Protection Agency (EPA) and Department of Transportation told the California Air Resources Board that their recent deal with four automakers appears to be “unlawful and invalid.”

The publication goes on to say the letter said the deal “may result in legal consequences given the limits placed in federal law on California’s authority.”

If that wasn’t threatening enough, a separate Reuters report says the Department of Justice has launched an investigation into whether or not the agreement between California, BMW, Ford, Honda and Volkswagen violated antitrust laws. The agency reportedly sent a letter to the automakers informing them about the investigation, but it appears to a “preliminary inquiry” at this stage.

Also Read: BMW, Ford, Honda And VW Strike Deal With California Over Emissions Standards

2020 Ford Escape 11

As we reported in July, California and the four automakers agreed to extend current 2025 model year emission standards to 2026. They’ll also “smooth out” the standards between 2022 and 2025 “to provide additional lead time and slightly less aggressive year-over-year reductions.” California will also streamline the review and approval process for new technologies as well as remove the requirement that caused electric vehicles to be hit for greenhouse gas emissions related to electricity production.

While the agreement appears to be beneficial for everyone involved, the Trump administration was furious about it. Yesterday, reports surfaced that the EPA and National Highway Traffic Safety Administration were preparing to submit a plan to revoke California’s ability to set their own emission standards and prevent other states from creating their own rules. In effect, it would create one national standard and the federal government would be in complete control of it.

It remains unclear how the antitrust investigation will pan out, but it can easily been seen as a move by the Trump administration to pressure automakers to drop out of the agreement. President Trump has been highly critical of the deal and has previously said “Car companies should know that when this Administration’s alternative is no longer available, California will squeeze them to a point of business ruin.”

2019 VW Atlas 1

  • Dude

    This is disgustingly pathetic. The mental gymnastics required to construe an emissions standards agreement as monopolistic/market controlling behavior are worthy of a gold medal in the corrupt moron Olympics.

  • cooper

    How is this pos still in office ?

    • brn

      Which POS? Gavin Newsom?

      • matrem

        Don’t over exert yourself

        • brn

          No worries.

    • Patrick

      Obama is out

      • matrem

        Hurr durr

      • CLASS IS OUT.

  • Lucius

    I know a lot of non-US types read this blog, so let me fill you in on something. Most of us in the other 49 states hate the state of California. It’s a FORMER paradise almost literally turned into the future world of Idiocracy. Waste, garbage, feces crime and hobos are everywhere…people with triple digit IQs are nowhere to be found. The working class flees the state in hundreds of thousands per year. It’s a national disgrace suitable only for the super rich and bums…which is ironic as those who live there virtue signal constantly about the wealth gap (eye roll). It got that way because of it’s horrible one-party political leadership…and now they’re making moves to FORCE their politics on the rest of the country. All their politics, not just emissions. They’re in cahoots with other poorly run states to overturn peoples votes in national elections based solely on California’s popular vote outcome…again, California is a one-party state, so fail to see how that’s fair. I hated living there, I hate going back there, and if they think I’ll do with less because of their poorly thought out policies they’re in for a rude awaking.

    • Allcarnews

      it’s not like they have literally the 6th largest economy in world if they were on their own or anything… Go rant somewhere else this is for car news and car comments jesus. Also let’s not mention the US gov under a republican president have California the ability to creat their own emissions standards.

      • Lucius

        Yes, it is the sixth…a few years ago it was the fourth biggest economy. California is circling the drain…a left wing drain.

        • matrem

          No, it wasn’t, grandpa. Again, rant elsewhere.

          • Lucius

            That’s your comeback? Bahahahah!!!
            I ain’t nobody’s grandpa, but you are most definitely childlike. The post was on automotive politics and my comments were appropriate to the story. You’re just mad because my comments call it like it is and your political feelings are hurt.

        • Enter Ranting

          And in which paradise do you reside, Lucius? Is it one of the states that takes California’s money to survive?

          • Lucius

            This stat has been thoroughly debunked by all credible non-biased sources. This stat comes from one of those statistical tricks where they calculate something with major omissions…like when the feds calculate inflation, but exclude energy costs. You’re so naive it’s hilarious. California has 34% of the entire country’s welfare cases…which seems odd if their economy is so wonderful, hmm…they’re a drain on everybody else.

          • Enter Ranting

            Sorry Lucius, I didn’t catch where you live. Where was that again?

        • elportonative77

          It’s actually the fifth now. It surpassed the UK a few months back.

          1. USA (Minus California)
          2. China
          3. Japan
          4. Germany
          5. California

    • paulgdeaton

      That farcical rant will only serve to make some “non-US types” as dumb and stupid as the Trumppuppers who spout such drivel.

      • Lucius

        Wow, that was a reasoned and mature response. And here I thought I was the “dumb and stupid” one, hmm. I’m a real estate developer in Colorado, more than half of my buyers are from California..and very liberal. Every one of them would agree with my original comment because they themselves have said those things.

    • Enter Ranting

      And yet, we’re the fifth largest economy in the world, so we’re doing something right. Jealousy doesn’t look good on you Lucius.

      • Lucius

        I looked it up, California was once 4th biggest economy, but dropped to 7th. In 2018 you were boosted to 5th, but only because two eurozone countries dropped. Hardly something to brag about. If your economy is so good, why do you have one third of the country’s welfare cases???

        • Enter Ranting

          Why won’t you tell us the state in which you live, Lucious? We’re all waiting to hear about how much better it is than California.

      • Cobrajet

        It’s called the private sector, nothing to do with your government.

  • I DON’T KNOW WHY COMPANIES CAN’T BUILD MORE EFFICIENT CARS WITHOUT BATTLING A CORRUPT ADMINISTRATION.

    • Allcarnews

      that is also very true! Tesla seems to be pushing that method!

    • Patrick

      Why do liberals always yell like little babies

      • GET OFF YOUR KNEES BOY.

      • Adam

        Yet it’s the republicans always calling for boycotts because of their hurt feelings.

    • SteersUright

      Because the USA is slowly slipping into a proper Plutocracy and their spoiled King needs to show everyone that you can’t dare challenge his position on EPA ratings & rattle his ego and get away with it.

  • matrem

    Grandpa, nobody is buying your cooks, unsubstantiated rants. Give. It. Up.

    • Lucius

      You not liking my highly accurate analysis doesn’t mean it’s unsubstantiated. It just means you don’t like it. You remind me of my kids when I tell them they can’t have cookies before dinner.

      • Enter Ranting

        Oh geez, you’re breeding?!

  • emjayay

    California has been squeezing auto makers to a point of business ruin for decades. That’s why there are now no new cars in California and everyone is walking, riding a bike, or taking BART. Sad.

  • getoffme

    Whoever put this monkey in office…smh. Actually, a monkey would be offended.

  • Enter Ranting

    Yeah, BMW, Ford, Honda and VW agreed to go along with Obama’s evil plan to outlaw engines. Thanks Obama!!!

    • Lucius

      Your comment implies any such plan to outlaw engines would be super obvious…which also implies you aren’t very bright. Hence it was a “poison pill” plan…and you clearly need to google poison pill because obviously you don’t know what that commonly used phrase is. Thanks for the mature response, please seek edification.

      • Enter Ranting

        Self important blowhard blows, self-importantly. California and the car manufacturers who have sided with the state will do fine without you. And so will the rest of us. Awaiting your pithy reply…

  • Enter Ranting

    Even moron olympians don’t like bedbugs.

  • Cobrajet

    There is no CO2 filter or catalytic converter that can just be added to say the problem is solved. Until there is something like that they will continue to push ICE closer to the cliff.

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