The lawsuit challenges California’s 2023 Clean Truck Partnership, which aimed to boost zero-emission truck sales and cut nitrogen oxide pollution.
Daimler, Volvo, Paccar, and International Motors have sued California to block enforcement of strict heavy-duty truck emissions standards that U.S. President Donald Trump voided in June.
Automakers in a complaint filed Monday in federal court in Sacramento said Trump’s revocation of Environmental Protection Agency waivers that the Biden administration had granted to allow California to set its own standards prevents the state from carrying out its 2023 Clean Truck Partnership program, Reuters reported.
That agreement with the trucking industry had provided it with flexibility on emission targets while also meeting California’s objective of increasing sales of zero-emission trucks and decreasing nitrogen oxide pollution.
The companies argued that the regulatory uncertainty has caused irreparable harm by making it difficult to plan production without knowing which vehicles can be sold.
The state is also suing to overturn Trump’s actions, which also blocked its plan to end sales of gasoline-only vehicles by 2035.
Separately, the Federal Trade Commission said Tuesday it had closed its antitrust probe into the Clean Truck Partnership after securing commitments from Daimler, International Motors, Paccar, and Volvo Group, which together control up to 99% of the U.S. heavy-duty truck market, to abandon the agreement and avoid similar arrangements with state regulators in the future.
The FTC said the 2023 pact raised competition concerns by forcing manufacturers to produce zero-emission engines rather than internal combustion models, maintaining restrictions even if CARB rules were overturned, and limiting political accountability.
The manufacturers told the FTC that the deal is unenforceable and pledged never to enforce its terms or agree to similar cross-enforcement provisions.
The Truck & Engine Manufacturers Association also agreed not to negotiate such agreements on behalf of its members. The commission’s vote to close the investigation was unanimous.
On Stocktwits, retail sentiment was ‘neutral’ for Daimler with ‘high’ message volume, ‘neutral’ for Volvo with ‘low’ volume, and ‘bearish’ for Paccar with ‘low’ volume.
So far this year, Daimler has gained 31.7%, Volvo is up 32.4%, while Paccar has declined 4.3%.
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