Nebraska Attorney General Michael T. Hilgers, along with Energy Marketers of America and Renewable Fuels Nebraska, has launched an antitrust suit against some of the largest original equipment manufacturers (OEMs) in the heavy-duty truck industry. The suit maintains there is an industry-wide conspiracy to phase out internal combustion engine (ICE) vehicles in favor of electric vehicles (EVs), which the plaintiffs argue is anticompetitive and harmful to consumers and businesses in Nebraska and beyond.
The defendants include Daimler Truck North America, International Motors (formerly Navistar), PACCAR Inc., Volvo Group North America, and the Truck & Engine Manufacturers Association (State of Nebraska, et al. v. Daimler Truck, et al., No. D15CI240000570, District Court, Lincoln County, Nebraska).
In the alleged conspiracy, said to be formalized through the Clean Truck Partnership (CTP) agreement with the California Air Resources Board (CARB), plaintiffs claim the OEMs have agreed to reduce the output of ICE vehicles, raise their prices, and eliminate consumer choice. According to the complaint, the CTP mandates that the OEMs comply with CARB regulations, which include phasing out ICE vehicles and increasing the production of zero-emission vehicles (ZEVs), even if these regulations are found to be unlawful in litigation.
The CTP is a blatant violation of state and federal antitrust laws, the plaintiffs say, because it is an illegal horizontal agreement between competitors.
Nebraska, a state with significant agricultural and logistics industries, relies heavily on Class 8 ICE vehicles, or semi-trucks, for transporting goods over long distances. Plaintiffs argue the CTP will disproportionately harm the state’s economy by increasing the costs of these essential vehicles. For instance, the state’s cattle feeders and grain producers will face higher costs and logistical challenges if forced to switch to electric trucks with limited range and too few charging stations, the suit maintains.
While environmentally friendly, EVs are not yet viable substitutes for ICE trucks given their limited range, charging times, and reduced payload capacity. Without significant investments in infrastructure, the suit warns of economic and supply chain disruptions.
The complaint cites violations of the federal Sherman Act, Nebraska Consumer Protection Act, and the Nebraska Unlawful Restraint of Trade Act (Junkin Act). Plaintiffs contend that even if the CTP is not deemed per se illegal, it is still unreasonable under the rule of reason. They argue that the agreement has no procompetitive benefits and that any potential benefits are substantially outweighed by its anticompetitive effects.
In addition to environmental considerations, proponents of EV trucks would dispute the alleged shortcomings of EV trucks, saying there are economic advantages of making the switch to electric, such as:
>> Lower Operating Costs: Electricity is generally cheaper than diesel fuel, leading to significant savings in fuel costs over the long term.
>> Reduced Maintenance Costs: Electric motors have fewer moving parts compared to diesel engines, resulting in lower maintenance and repair expenses.
>> Increased Vehicle Lifespan: Electric trucks often have longer lifespans due to the simplicity of their drivetrain and reduced wear and tear.