Latest news with #CleanTruckPartnership
The Hill
15 hours ago
- Automotive
- The Hill
Electric about-face could open the door for new truck makers
'All your competitors just announced their strategy,' Craig Segall, former deputy executive officer and assistant chief counsel of the California Air Resources Board (CARB), told The Hill. 'How quickly can you ramp up to eat their lunch?' Segall asked. This now unmasked strategy — an about-face on compliance with the Golden State's heavy-duty vehicle standards — came to light this week when four manufacturers sued California regulators over the matter. Soon after, the Federal Trade Commission declared that a voluntary 'Clean Truck Partnership' between the companies and the state was 'unenforceable.' Last week's lawsuit, filed Monday by Daimler Truck, International Motors, PACCAR and the Volvo Group, alleged the federal government had deemed California's emissions rules 'unlawful' in June. At the time, President Trump signed off on three congressional resolutions revoking a Biden administration waiver that had allowed the state to set these rules. Under the 1970 Clean Air Act, California can create emissions standards that are stricter than federal norms but must acquire a waiver from the Environmental Protection Agency to do so. Segall described Monday's lawsuit as 'an audacious move,' noting in a Thursday op-ed that truckmakers just two years ago supported the Clean Truck Partnership, which he helped negotiate. He accused companies such as Daimler, which controls 40 percent of the country's truck market, of 'badly letting the trucking industry down.' Meanwhile, he warned, China is accelerating electric truck adoption. Pointing to the fact that delivery firms such as Amazon have smaller electric trucks operating nationwide, Segall forecast that 'giant semitrailers' will make a similar transition soon. With that in mind, he stressed there is 'an interesting opening' for other competitors, such as Chinese electric truck startup Windrose. Industry veteran Rustam Kocher echoed these sentiments in a recent post on LinkedIn, calling upon Windrose, other Chinese e-truck manufacturers and Tesla Semi to fill in this gap and 'let the market-share eating competition commence.' 'This industry is changing, just like the light-duty industry is changing,' Kocher told The Hill.
The Hill
2 days ago
- Automotive
- The Hill
New players may have window to disrupt after trucks exit California emissions deals
As the nation's major truckmakers seek to abandon California's stricter-than-federal emissions rules, experts are weighing whether this U-turn could allow new players to disrupt the market. 'All your competitors just announced their strategy,' Craig Segall, former deputy executive officer and assistant chief counsel of the California Air Resources Board (CARB), told The Hill. 'How quickly can you ramp up to eat their lunch?' Segall asked. This now unmasked strategy — an about-face on compliance with the Golden State's heavy-duty vehicle standards — came to light this week when four manufacturers sued California regulators over the matter. Soon after, the Federal Trade Commission (FTC) declared that a voluntary 'Clean Truck Partnership' between the companies and the state was 'unenforceable.' Then, Friday, the Department of Justice sued California about the same partnership, in a bid to 'advance President Donald J. Trump's commitment to end the electric vehicle (EV) mandate.' The week's initial lawsuit, filed Monday by Daimler Truck, International Motors, PACCAR and the Volvo Group, alleged the federal government had deemed California's emissions rules 'unlawful' in June. At the time, President Trump signed off on three congressional resolutions revoking a Biden administration waiver that had allowed the state to set these rules. Under the 1970 Clean Air Act, California can create emissions standards that are stricter than federal norms but must acquire a waiver from the Environmental Protection Agency to do so. In Monday's filing, the truckmakers — also called original equipment manufacturers (OEMs) — argued California's demands have 'threatened' their ability to 'design, develop, manufacture and sell heavy-duty vehicles and engines.' The lawsuit noted the Department of Justice had instructed manufacturers 'to immediately cease and desist compliance with California's preempted and unlawful mandates,' leaving the companies 'caught in the crossfire.' CARB said it would not comment on pending litigation. The FTC declaration that followed on Tuesday determined a 2023 voluntary agreement between truckmakers and CARB — the 'Clean Truck Partnership' — was 'unenforceable.' In that partnership, the companies had agreed to abide by California's emissions standards in exchange for certain concessions. One such standard was the Advanced Clean Trucks rule, requiring 7.5 percent of heavy-duty vehicles to be emissions-free by 2035. A second, the Omnibus Regulation, focused on slashing nitrogen oxide releases by 90 percent and updating engine testing protocols. Segall described Monday's lawsuit as 'an audacious move,' noting in a Thursday op-ed that truckmakers just two years ago supported the Clean Truck Partnership, which he helped negotiate. He accused companies such as Daimler, which controls 40 percent of the country's truck market, of 'badly letting the trucking industry down.' Meanwhile, he warned, China is accelerating electric truck adoption. A possible goal of the sudden turnaround is to move costs onto the industry and 'to drag out the transition from diesel as long as possible,' Segall told The Hill. Because the companies haven't faced serious new competition yet — disruptors such as Tesla in the car space — and have the federal administration 'clearly on their side,' they 'can burn the regulators for the fourth largest economy in the world,' Segall observed. Yet at the same time, Segall noted, the truckmakers are up against a billion-person market in China, where other manufacturers 'are rapidly eating their market share.' The U.S. trucking giants, he continued, could jeopardize their presence in the world market while also getting the country 'stuck in diesel for a few years.' 'That's not a long-term win for them,' Segall said, arguing things may change when a new president enters office in 2029. The new president might realize 'with horror, the U.S. is badly behind on EVs,' Segall said. Policymakers at that point, he explained, could either revive CARB's rules or enact national-level legislation. Rather than leaving the freight system 'stuck in diesel' in 2040, Segall said he believes the industry will return 'hat in hand' to Congress and California. Pointing to the fact that delivery firms such as Amazon have smaller EV trucks operating nationwide, Segall forecast that 'giant semitrailers' will make a similar transition soon. With that in mind, he stressed there is 'an interesting opening' for other competitors, such as Chinese electric truck startup Windrose. Industry veteran Rustam Kocher echoed these sentiments in a recent post on LinkedIn, calling upon Windrose, other Chinese e-truck manufacturers and Tesla Semi to fill in this gap and 'let the market-share eating competition commence.' 'This industry is changing, just like the light-duty industry is changing,' Kocher told The Hill. While Kocher said he believes the companies made their decisions due to the short-term profit margins, he argued that 'the profitability they're going to gain off of combustion engines is going to change.' 'At some point, the resale value of those things is going to drop off the end of the Earth,' he added, noting Windrose or Tesla Semi are 'perfect examples' of market entrants that could perform better and cheaper. Kocher, who is now semiretired in Portugal, worked in various electrification-related roles for Daimler Truck North America from 2011-19 and then served as transportation electrification manager for Portland General Electric. During his time at Daimler, he said he helped launch the e-mobility group and worked on developing fast-charging standards 'with the full support of Daimler Truck, with the full support of everyone else in the trucking OEM world.' Kocher acknowledged that from a business perspective, although electric trucks are viable, they are not currently as profitable as existing diesel trucks and cost more up front. Yet they cost less to operate per mile and save money for fleets due to their reduced maintenance needs — needs that drive profits for truckmakers, according to Kocher. 'Every electric truck they put into the market means they're taking a cut on profit,' he said. 'They're not going to make those maintenance and after-sale part sales.' Recognizing the profitability 'conundrum' that the industry is facing, Kocher expressed sadness that the firms he had held in high esteem decided to choose this direction. 'To see them turn around and do this, it's made me very disappointed and frustrated,' he added.
Time of India
3 days ago
- Automotive
- Time of India
DOJ sues California to end enforcement of emissions standards for trucks
The US Department of Justice said on Friday it has sued California in a bid to end the state's enforcement of emissions standards for trucks. The DOJ said it filed two complaints this week in federal courts against the California Air Resources Board on the state's enforcement of preempted emissions standards through its so-called " Clean Truck Partnership " with heavy-duty truck and engine manufacturers. "These actions advance President Donald J. Trump's commitment to end the electric vehicle (EV) mandate, level the regulatory playing field, and promote consumer choice in motor vehicles," it said in a statement. Earlier this week, four major truckmakers, including Daimler and Volvo, also sued the state to block it from enforcing the strict emissions standards Trump declared void in June. Trump, a Republican, is trying to curb California's power under the federal Clean Air Act to set tighter pollution limits than federal law requires, and Democratic Governor Gavin Newsom's ability to promote electric vehicles to fight climate change. "President Donald Trump and Congress have invalidated the Clean Air Act waivers that were the basis for California's actions. CARB must respect the democratic process and stop enforcing unlawful standards," said Adam Gustafson, the DOJ's acting assistant attorney general for the Environment and Natural Resources Division.
Business Insider
4 days ago
- Automotive
- Business Insider
DOJ sues California to end enforcement of truck emissions standards
The Justice Department this week filed two complaints in federal courts against the California Air Resources Board regarding the State's enforcement of preempted emissions standards through its so-called 'Clean Truck Partnership' with heavy-duty truck and engine manufacturers. A parallel filing in the court of appeals addresses CARB's rules for light-duty vehicles, which are also preempted. 'These actions advance President Donald Trump's commitment to end the electric vehicle mandate, level the regulatory playing field, and promote consumer choice in motor vehicles,' the DOJ stated. Publicly traded automobile and truck makers include Ford (F), General Motors (GM), Honda (HMC), Lucid Group (LCID), Mercedes-Benz (MBGYY), Nissan (NSANY), Rivian (RIVN), Stellantis (STLA), Tesla (TSLA), Toyota (TM), Cummins (CMI) and Volkswagen (VWAGY). Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
The Hill
4 days ago
- Automotive
- The Hill
Trump seeks to sue California over clean trucking effort
The Trump administration is seeking to sue California to try to halt the state from enforcing its effort to electrify its truck fleet. The administration filed motions to join existing cases against the state over its rules seeking to reduce pollution and planet-warming emissions from trucks. The moves come after the Trump administration axed California's rules — but did so in a legally contested manner. Now, the Trump administration and truck makers are accusing the state of enforcing the now-overturned standards through its 'Clean Truck Partnership' under which truck companies agreed to follow the state's rules in exchange for some additional flexibility. The California Air Resources Board, which is in charge of the truck rules, declined to comment. At issue are California rules including the Advanced Clean Trucks rule, which would require a large percentage of trucks sold in the state to be electric by 2035. In 2023, a group of truck makers agreed to meet California's standards in exchange for some concessions from the state in what became known as the Clean Truck Partnership. Under the Clean Air Act, California is required to get federal approval for its auto regulations. The Biden administration approved the state's rule. This year, however, Congress and President Trump approved a resolution using the Congressional Review Act to overturn the approval of the California rule. The move occurred despite determinations from the Senate parliamentarian and the Government Accountability Office, a nonpartisan congressional watchdog, which said that it was not subject to the Congressional Review Act. Now, the Trump administration is arguing in court that California has sought to enforce its rules through the Clean Truck Partnership, describing the state's effort as a 'a stunning act of defiance.' Earlier this week, Daimler Truck North America, International Motors, Paccar and Volvo Group North America sued the Trump administration to try to axe the state's rules and the partnership.
