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DOJ to Investigate Four Automakers Over Emissions Pact With California

Feds allege the agreement may have violated federal competition law.

The Justice Department has opened an investigation into whether an independent agreement between four auto companies and the state of California setting stricter tailpipe-emissions standards violated federal law. The government says it’s concerned the agreement might give the car companies—which include Ford Motor Co., Honda Motor Co., BMW AG, and Volkswagon AG—special treatment by California on compliance and approval for new models. The Justice Department has launched an antitrust investigation to determine whether the four companies violated federal competition law with the agreement, according to reporting by The Wall Street Journal.

A spokesperson from Honda said, “Honda will work cooperatively with the Department of Justice with regard to the recent emissions agreement reached between the State of California and various automotive manufacturers, including Honda.” California has power rivaling the federal government’s in setting environmental rules for cars and trucks, and the investigation is the latest step by the Trump administration to curb the state’s influence on the auto industry.