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FTC Ends Probe Into Truck Makers’ Emissions Deal With California Regulators

By  |  August 13, 2025

The U.S. Federal Trade Commission has ended its investigation into a group of major truck and engine manufacturers after securing commitments that they will not enforce a controversial emissions agreement with California regulators. According to a statement from the agency, Volvo Group, Daimler Truck, International Motors, and PACCAR agreed that the terms of the “Clean Truck Partnership” would not be used to limit competition in the U.S. heavy-duty truck market.

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    The agreement, formed in 2023 between the companies and the California Air Resources Board (CARB), pledged adherence to state rules requiring the sale of zero-emission trucks. These rules stemmed from CARB’s Advanced Clean Trucks and Advanced Clean Fleets regulations, as well as strict emissions standards for diesel-powered vehicles. Per a statement from the FTC, the companies involved control up to 99% of the U.S. heavy-duty truck market, prompting concerns that the deal could suppress supply and inflate prices.

    The FTC said it received written assurances from the manufacturers declaring the partnership unenforceable. The agency noted that the arrangement raised “obvious” antitrust concerns because it involved a group of direct competitors collectively agreeing to restrict certain sales and adopt emissions caps that could limit production.

    Read more: Scania Loses Appeal To €880M EU Fine In Truck Cartel Case

    The resolution of the probe comes as the same manufacturers pursue legal action against CARB and California Governor Gavin Newsom, seeking to block enforcement of the state’s heavy-duty truck emissions rules. The lawsuit argues that federal law, particularly following President Trump’s 2025 revocation of CARB’s waivers from the Environmental Protection Agency, preempts California’s authority to impose stricter standards. The companies claim they face conflicting demands from federal and state governments, describing themselves as caught between “two sovereigns whose regulatory requirements are irreconcilable.”

    The Clean Truck Partnership had initially been intended to ensure compliance with California’s standards even if legal challenges arose, with CARB promising flexibility in meeting deadlines and support for zero-emission infrastructure. However, according to the FTC’s statement, the manufacturers’ recent commitments effectively render the agreement inoperative, closing the chapter on what the agency viewed as a potentially anticompetitive arrangement.

    Source: ESG Today