DOJ probing whether automakers violated antitrust rules with California agreement
The Department of Justice is ramping up the pressure on four automakers that sidestepped federal regulators by agreeing to a deal with California on carbon emissions and fuel standards.
The feds are investigating whether the four -- Ford, Honda, BMW and Volkswagen -- violated antitrust rules by collaborating on the agreement, the auto companies confirmed Friday.
“Honda will work cooperatively with the Department of Justice with regard to the recent emissions agreement reached between the State of California and various automotive manufacturers, including Honda,” Honda USA said in a statement.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| F | FORD MOTOR CO. | 11.10 | -0.29 | -2.55% |
| HNDAF | HONDA MOTOR CO. LTD. | 8.66 | -0.14 | -1.64% |
| HWAGY | NO DATA AVAILABLE | - | - | - |
| BMWYY | NO DATA AVAILABLE | - | - | - |
Ford said it has received a DOJ letter and "will cooperate with respect to any inquiry." VW declined to comment on the letter, but said it is in "regular contact with U.S. authorities on a number of matters."
The four reached an agreement with the California Air Resources Board in July to annually raise the benchmarks 3.7 percent from 2022 to 2026, but a portion of that could be achieved with electric vehicle credits.
BMW of North America also confirmed it had received a DOJ letter from the Department of Justice. "We look forward to responding to the Department of Justice to explain the planned CARB framework agreement and its benefits to consumers and the environment," the company said.
President Trump called the companies' executives "foolish" and the companies themselves "politically correct."
“My proposal to the politically correct Automobile Companies would lower the average price of a car to consumers by more than $3000, while at the same time making the cars substantially safer,” Trump tweeted. “Engines would run smoother. Very little impact on the environment! Foolish executives!”
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California's rules would require light-duty model year 2026 vehicles from the four automakers to hit a minimum of 50 miles per gallon. Trump wants the current standard of 37 miles per gallon to continue until 2026 without rising.