According to a Reuters report, Daimler, Volvo, Paccar (PCAR), and International Motors, formerly Navistar, filed a complaint in the federal court in Sacramento and named the California Air Resources Board and Democratic Governor Gavin Newsom as defendants.
Four major truckmakers have sued California to block it from enforcing strict emissions standards, Reuters reported on Tuesday.
Daimler, Volvo, Paccar (PCAR), and International Motors, formerly Navistar, filed a complaint in the federal court in Sacramento and named the California Air Resources Board (CARB) and Democratic Governor Gavin Newsom as defendants, the report said.
PCAR stock traded 1% higher at the time of writing. Retail sentiment around the stock trended in the ‘bearish’ territory over the past 24 hours, coupled with ‘low’ message volume.
Certain waivers enacted during the Biden administration allowed California to set its own emissions standards, including the end of the sale of gasoline-only vehicles in the state by 2035. President Donald Trump voided California’s emission standards in June. The state is now suing to undo Trump’s actions.
The four truckmakers said they have been “caught in the crossfire” since. The truckmakers said that Trump rescinding U.S. Environmental Protection Agency approval of California’s plan to boost zero-emission heavy-duty truck sales and reduce nitrogen oxide emissions preempted the state’s enforcement. They said that this included enforcing a 2023 program called the Clean Truck Partnership, the report noted.
The Clean Truck Partnership (CTP) is an agreement between CARB, the Truck and Engine Manufacturers Association (EMA), and other major truck manufacturers that represent over 90% of California’s truck market. The program gives the truckmaking industry flexibility to meet emissions requirements, provided they advance zero-emission technology, regardless of whether any other entity challenges California’s authority to set more stringent emissions standards.
The complaint noted that the regulatory uncertainty has caused irreparable harm as the companies cannot plan production without knowing which vehicles they will have the permission to sell.
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