Nebraska Files Antitrust Suit Against Truck Manufacturers Over Diesel Truck Phase-Out

Nebraska Attorney General Michael Hilgers has launched a lawsuit against some of the world’s largest truck manufacturers, claiming they conspired to limit the availability of diesel-powered semi-trucks, according to court documents filed Tuesday. Hilgers alleges that Daimler, Navistar (a Volkswagen subsidiary), Paccar, Volvo Group North America, and the Truck and Engine Manufacturers Association (EMA) acted collectively to phase out internal combustion vehicles, primarily due to California’s stringent environmental regulations.

The lawsuit asserts that these manufacturers participated in an “industry-wide conspiracy” influenced by California’s progressive emissions standards, which aim to curb and eventually eliminate medium and heavy-duty diesel trucks. Per Hilgers’ statement, the truck manufacturers’ move to restrict diesel-powered trucks in favor of electric options would “raise prices, reduce output, and increase costs on Nebraskans,” calling it a “classic antitrust violation.”

The legal challenge stems from a July 2023 agreement between the California Air Resources Board (CARB) and major truck manufacturers. Under this agreement, truck makers committed to aligning with California’s strict emissions standards, even if other states or federal bodies contest California’s regulatory authority. The accord, which CARB described as providing the industry with flexibility in meeting emissions targets, has faced pushback from states opposed to California’s policies. CARB did not respond to requests for comment, while Paccar also declined to comment on the Nebraska lawsuit, according to Reuters.

The lawsuit builds on growing opposition from several states against California’s emissions policies, including Nebraska. In May, Nebraska and 15 other states filed a lawsuit against CARB, challenging its Advanced Clean Fleets regulation, which is designed to gradually shift fleets toward zero-emission vehicles (ZEVs). This rule, awaiting approval from the U.S. Environmental Protection Agency (EPA), would mandate a complete transition to ZEVs for medium- and heavy-duty trucks by 2036 and is central to California’s plan to require all medium- and heavy-duty vehicles to operate with zero emissions by 2045.

The push toward electric trucks aligns with California Governor Gavin Newsom’s vision for the state’s transportation sector. In a previous statement, Newsom highlighted California’s objective for half of all heavy-duty trucks sold in the state to be electric by 2035, eventually phasing out combustion-powered models as feasible.

Source: Reuters