Now, why would the feds launch an antitrust probe against Ford right at the beginning of UAW negotiations?
They eat each other alive.
#sayhisname
Feds launch antitrust probe into California mpg deal with Ford, others
Washington — The Trump administration is escalating its battle with California over gas-mileage rules by launching an antitrust investigation into Ford Motor Co. and three other automakers that have agreed to higher fuel-economy rules than President Trump has pushed for.The U.S. Department of Justice is investigating Ford, Volkswagen AG, Honda Motor Co. and BMW AG for reaching a deal with California to voluntarily increase the average fuel economy of their fleets to about 50 miles per gallon by the end of the 2026 model year, Ford, Honda and BMW confirmed Friday. The Justice Department declined comment.
In a letter obtained by The Detroit News, the Justice Department said it is concerned the agreement between the auto companies and California "may violate federal antitrust laws." The agency said it is inviting the carmakers to meet with federal regulators "in order to help us determine whether that is a possibility and what are the appropriate next steps we should take" and is planning to review communication between the carmakers concerning the formation of the pact.
Additionally, the U.S. Environmental Protection Agency said in a letter sent Friday to the California Air Resources Board, which negotiated the deal with the carmakers, that the proposed agreement "appears to be inconsistent with federal law."
"Congress has squarely vested the authority to set fuel economy standards for new motor vehicles, and nationwide standards for [greenhouse gas] vehicle emissions, with the federal government, not with California or any other state," Steven Bradbury and Matthew Leopold, general counsels for the EPA, wrote in a letter to CARB Administrator Mary Nichols.
EPA's lawyers urged CARB to immediately disassociate itself from the commitments made by the four automakers. "Those commitments may result in legal consequences given the limits placed in federal law on California's authority," the letter said.
The California Air Resources Board did not immediately respond to a request for comment. The office of California Attorney General Xavier Becerra declined to comment.
Ford said in a statement: "We have received a letter from the Department of Justice and will cooperate with respect to any inquiry.”
Honda said it 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."
BMW said: "We can confirm receipt of an inquiry from the Department of Justice and will respond appropriately."
Volkswagen declined to comment, saying: “We are in regular contact with U.S. authorities on a number of matters, but do not comment on specific private communications we may or may not receive.”
The investigation, first reported by the Wall Street Journal, which cited anonymous sources, is the latest front in a battle over mpg rules between the Trump administration and California that has ensnared automakers in a fight that is likely to end up in a lengthy court battle.
The move by the carmakers to agree separately with California to higher mpg standards flew in the face of the Trump administration's two-year push to freeze fuel-mileage rules at about 39 mpg for model years 2021 to 2026.
The Trump administration has responded by moving forward with a plan to revoke part of California's right to set its own gas mileage rules for cars, setting up a likely protracted legal fight.
The Office of Management and Budget’s Office of Information and Regulatory Affairs is planning to submit a proposed "One National Program" rule that prohibits states from setting their own gas mileage rules in a bid to ensure a single national level for fuel economy standards that would directed by Congress, a source familiar with the interagency process who was not authorized to speak on the record said Thursday.
The "One National Program" rule will not be final until it is submitted to the Federal Register and approved under the federal government's traditional rulemaking process after the White House review process is complete.
At the same time, the U.S. Environmental Protection Agency is planning to revoke aspects of a Clean Air Act waiver that has been used for years by California to set its own emission standards, according to the source that is familiar with the internal administration discussions. That would undo California's Advanced Clean Car Rule, which calls for automakers to reduce pollution from new cars from 2012 model year levels by 40% by 2025.
The Trump administration's plan would leave in place California’s low-emission vehicle standards that have been in place since the 1990s.
The White House and California have locked horns over gas mileage rules since the earliest days of Trump's presidency. His administration announced last year its intention to ease stringent gas-mileage rules that would have required fleets averaging nearly 55 miles per gallon by 2025. The administration proposed a freeze in the mandate after 2020, touching off a fierce battle with California, which helped craft the Obama-era rules.
The two sides attempted to negotiate a potential agreement, but the White House announced in February it was pulling out of the talks and moving forward with its proposed freeze.
Thirteen states and Washington, D.C., have adopted California’s mileage rules, meaning automakers could be left with one set of rules for a quarter of the country and another set for the remaining states unless the Trump administration and California can come to an agreement. Congress gave California the right to set its own standards years ago under the Clean Air Act.
Carmakers have consistently pushed for one national fuel-economy standard. They have pressed the Trump administration to go back to the negotiating table with California.
Environmentalists have decried the Trump administration's efforts to roll back the Obama-era fuel economy standards as an attack on the environment from a hostile administration.
“The Trump administration is trying to bully automakers into accepting a rule rollback the companies don’t want,” said Luke Tonachel, director of clean vehicles and fuels at the Natural Resources Defense Council. “It’s bizarre — but not surprising — that this Environmental Protection Agency is attacking companies that want to cut pollution.”
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