Four manufacturers rejected Trump's emissions policy. Now they are under antitrust investigation



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The four builders – Ford (F), Honda (HMC)Volkswagen and BMW – agreed in July to adhere to the stricter standards set by the California Air Resources Board rather than the rules of the Trump administration, which would overturn the standards put in place under former President Barack Obama. .

Although Californian rules required automakers to build more expensive cars, they gave them an advantage: builders would only have to comply with a national standard, rather than a lower standard for most of the country, and a stricter standard for California and 13 other states that follow its rules. These 14 states represent about 40% of the US population.

But the deal between automakers and California has clearly angered President Donald Trump, who whipped the car manufacturers in a number of tweets last month after their agreement.

In a series of other tweets, he suggested that Ford founder, Henry Ford, would "roll" into his grave because of the "weakness" of the auto industry leaders who accepted the standards of the California.

Even the Obama administration, which has put in place rules requiring more fuel efficient cars, has acknowledged that the purchase price would be higher. But he argued that fuel savings over the life of the car would make cars more efficient overall less expensive.
Biggest automakers in the world reduce emissions as Trump downgrades regulations
The survey was reported Friday by the Wall Street Journal. The Department of Justice did not immediately comment on the report, but several of the builders confirmed that they had been contacted. And the EPA and the transport department signed up on Friday to oppose the deal.

"We have received a letter from the Department of Justice and we will cooperate with any investigation," Ford said. Honda and BMW had similar comments. Only VW has not confirmed the investigation.

On July 25, the California Air Resources Board, or CARB, announced the conclusion of an agreement with automakers, and also urged other automakers to accept them.

"California, a coalition of states, and these automakers are paving the way for smart policies that make the air purer and safer for all of us," said California Governor Gavin Newsom . "I now call the rest of the auto industry to join us and urge the Trump administration to embrace this pragmatic compromise instead of continuing its regressive regime change." good for our economy, our people and our planet. "

But the Trump administration is challenging California's right to set stricter standards than the federal rules. EPA and DOT wrote to the California authorities Friday to ask them to end the agreement with automakers.

"This framework agreement seems to be inconsistent with federal law," the letter says. "Congress has clearly conferred the authority to set fuel economy standards for new motor vehicles and national standards for vehicle emissions with the federal government, not California or any other state. . "

California Air Resources Board did not immediately respond to a request for comment on Friday.

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