Carmakers, Justice Dept. to Meet on Emissions Antitrust Probe

Four carmakers who struck a deal with California in July on future emission rules will meet next week with the U.S. Dept. of Justice, which says the pact may violate antitrust laws, sources tell The Wall Street Journal.

BMW, Ford, Honda and Volkswagen agreed in late July to voluntary goals that would reduce the tailpipe emissions of cars they sell in California by 3.7% per year during model years 2022-2026.

The targets are weaker than the federal standards currently scheduled for 2021-2025. But they go beyond the Trump administration’s apparent plan to freeze emission regulations in 2020 and cancel the subsequent standards. The White House is expected to announce details about its plan in November.

The Justice Dept. raised the question of a possible antitrust violation in letters sent to the carmakers and California in late August.

The four-company pact followed a June 6 letter sent by 17 carmakers to the White House and California, urging them to agree on a single set of emission rules for all 50 states.

The Trump administration has moved to preempt the issue by rescinding California’s right to set its own pollution standards., Over the past 15 years, 13 states and the District of Columbia have adopted California’s rules.