Justice Department Drops Antitrust Probe of Auto Makers Involved in California Emissions Deal

By Brent Kendall and Timothy Puko 

WASHINGTON -- The Justice Department has closed its antitrust investigation of four auto makers that had reached a tailpipe emissions deal last summer with the state of California, according to people familiar with the matter.

After examining the matter for several months, the department concluded that the auto makers -- Ford Motor Co., Honda Motor Co., BMW AG and Volkswagen AG -- didn't engage in conduct that violated U.S. antitrust law, the people said.

At issue was a July agreement between the auto makers and the California Air Resources Board on fuel efficiency standards, a state-based framework that is at odds with the Trump administration's regulatory approach.

Justice Department officials questioned whether the companies agreed among themselves on the outlines of the deal with California regulators, and the auto makers received formal civil subpoenas in the fall.

Mary Nichols, chairwoman of the California Air Resources Board, has said the state worked individually with the auto makers and that all parties were mindful of not violating antitrust laws.

The New York Times first reported the Justice Department's closing of the probe.

Write to Brent Kendall at [e-mail] and Timothy Puko at [e-mail]

(END) Dow Jones Newswires

February 07, 2020 17:38 ET (22:38 GMT)

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