Federal Trade Commission (FTC) abandoning antitrust probe into Volvo and Daimler truckmakers, following their guarantees to forbear from enforcing the California air pollution reduction accord.
In a remarkable turn of events, four major truck manufacturers – Daimler Truck North America, International Motors, PACCAR, and Volvo Group North America – have filed a federal lawsuit in California’s Eastern District Court, challenging the authority of the California Air Resources Board (CARB) to enforce its heavy-duty truck greenhouse gas emissions regulations.
The legal dispute, which is active as of August 2025, is centred on the enforcement of the 2023 Clean Truck Partnership agreement, a collaboration aimed at aligning state and federal truck emissions standards. However, the agreement is now contested due to the revocation of EPA waivers enabling California’s regulations, following Congressional review in 2025.
The manufacturers argue that recent Congressional action has nullified the EPA waivers, making the state’s regulations preempted by federal law. They claim they are caught between conflicting demands: California requires compliance, but the U.S. Department of Justice (DOJ) instructs them to cease following the preempted standards.
The DOJ has intervened by filing motions to join these lawsuits, supporting the position that the Clean Air Act preempts California from enforcing emissions regulations without EPA waivers. The DOJ has also issued cease-and-desist letters to manufacturers to stop complying with CARB’s Clean Truck Partnership and related emissions regulations.
The Advanced Clean Trucks Regulations (ACT), the Advanced Clean Fleets Regulations (ACF), and the Heavy-Duty Engine and Vehicle Omnibus Regulations are regulations issued by CARB, which the manufacturers are challenging in the lawsuit. They seek to enjoin CARB from enforcing multiple standards, including Advanced Clean Trucks, Omnibus Low NOx, Advanced Clean Cars II, and related greenhouse gas rules, asserting federal preemption and constitutional claims.
CARB maintains enforcement efforts, including directives and executive orders, despite the lawsuit and federal challenges. The truck manufacturers, on the other hand, have stated that the Clean Truck Partnership is unenforceable and have committed not to enforce its terms against other manufacturers.
This legal battle reflects a clash between California’s aggressive emissions policies and the federal government’s revoked waivers and enforcement priorities. The U.S. Federal Trade Commission (FTC) has expressed antitrust-focused concerns about the investigation, noting that the four companies control up to 99% of the heavy-duty truck market in the U.S. Taylor C. Hoogendoorn, Deputy Director of the FTC's Bureau of Competition, stated that CARB's regulatory overreach posed a major threat to American trucking and presented serious antitrust concerns.
In June 2025, President Trump signed legislation to revoke CARB's waivers. A spokesperson for Volvo Group stated that the company is caught between conflicting federal and California regulatory enforcement efforts and has joined other concerned parties in filing a lawsuit. CARB agreed to provide reasonable lead times to meet the requirements and to support the development of zero emission vehicle infrastructure.
The FTC is concerned that the partnership could reduce the supply of trucks and raise prices. The agreement, the "Clean Truck Partnership," was launched between the companies and CARB in 2023 with the commitment from the partners to meet California regulations requiring the sale and adoption of zero emissions technology. The companies have launched a lawsuit against CARB and California Governor Gavin Newsom, aiming to stop the state from enforcing its heavy-duty truck emissions standards.
As federal courts consider the manufacturers’ claims against CARB’s enforcement, the future of California’s aggressive emissions policies and the truck industry remains uncertain.
- The legal dispute over heavy-duty truck emissions regulations in California has drawn the attention of various industries, including finance, as investors closely monitor the potential impact on company profits and the overall truck industry.
- The clash between California's aggressive emissions policies and the federal government's regulatory actions has also caught the attention of general news and politics, with concerns about the possible implications for energy sustainability and the economy.
- Amidst the legal battle and antitrust-focused concerns raised by the Federal Trade Commission, the crime-and-justice sector is also watching closely, as the turmoil in the truck industry may lead to increased instances of corporate fraud and competition law violations.
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