Nebraska Files Antitrust Suit Against Truck Manufacturers Over Transition to Electric Vehicles

This week, Nebraska Attorney General Mike Hilgers filed an antitrust lawsuit against some of the nation’s largest heavy-duty truck manufacturers for what he described as, “an alleged plot to stifle the availability of internal-combustion semi-trucks in favor of electric ones.” Hilgers alleges that California has imposed a series of regulations "designed to essentially eliminate semi-trucks with internal combustion engines." Other states have adopted California’s regulations as well. Rather than push back or simply compete in the marketplace, heavy-duty truck manufacturers colluded to sign an agreement called the “Clean Truck Partnership.” The agreement commits the signatory manufacturers not to oppose additional state-level electric-truck mandates and to restrict output of diesel-powered semi-trucks in lockstep, even if a court rules that the regulations are unlawful.Hilgers said, “Eliminating diesel-powered semi-trucks is practically impossible to accomplish and would impose enormous costs on Nebraska and Nebraska companies. That is why Nebraska sued California officials from issuing an anti-democratic regulation to eliminate diesel-powered semis in their state. Unfortunately, these heavy-duty truck manufacturers, who dominate the market in Nebraska, have agreed to go along with California’s edict—even if Nebraska is successful in overturning the regulation. These manufacturers’ collusion will raise prices, reduce output, increase costs on Nebraskans, and is a classic antitrust violation.” Earlier this year, Attorney General Hilgers spearheaded a 17-state coalition to block California’s Advanced Clean Fleets regulation, which imposes an outright ban on the sale of internal-combustion trucks. Under the Clean Truck Partnership, the truck manufacturers have pledged to abide by Advanced Clean Fleets, among other state-level electric-truck mandates, even if Nebraska’s challenge is successful. The antitrust lawsuit alleges that truck manufacturers have illegally conspired to anticompetitively reduce the output of internal-combustion trucks to protect their own economic interests. “The logistics industry is a foundational piece of Nebraska’s economy—from employing thousands of Nebraskans to ensuring that Nebraska’s agriculture and liquid fuel products can get to purchasers around the country and world. Whether it is California or collusive corporations, I will continue to fight misguided and anti-democratic policies that threaten to devastate Nebraska’s trucking and biofuel industries, raise prices for consumers, and impact jobs across Nebraska and the country,” said Hilgers. In addition to Nebraska, the Energy Marketers of America and Renewable Fuels Nebraska joined as co-plaintiffs in the lawsuit against Daimler, Navistar, Paccar, Volvo, and the Truck and Engine Manufacturers Association.

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