Nebraska AG Challenges Antitrust Actions in Electric Truck Industry Shakeup

Nebraska fights back against electric truck monopoly, suing major manufacturers and regulators for antitrust violations.

At a Glance

  • Nebraska AG Mike Hilgers files antitrust lawsuit against four major semitruck manufacturers
  • Lawsuit challenges national contract aimed at increasing electric vehicles and complying with California emissions rules
  • Manufacturers control 99.9% of Class 8 truck market, raising monopoly concerns
  • Nebraska seeks to nullify the Clean Truck Partnership agreement nationwide
  • Lawsuit emphasizes need for free market approach in logistics policy changes

Nebraska Takes on Big Auto and California Regulators

In a move designed to protect consumer choice and prevent market manipulation, Nebraska Attorney General Mike Hilgers has filed an antitrust lawsuit against four major semitruck manufacturers and the Truck and Engine Manufacturers Association. The lawsuit, filed in Lincoln County District Court, targets Daimler Truck North America, International Motors Inc., PACCAR Inc., and Volvo Group North America, accusing them of forming an oligopoly that controls 99.9% of the Class 8 truck market.

The legal action challenges a national contract aimed at increasing electric vehicles and complying with California’s stringent emissions rules. This agreement, known as the Clean Truck Partnership, was formed in response to California Air Resources Board (CARB) regulations, which Hilgers has previously contested in federal court.

Protecting Nebraska’s Interests and Free Market Principles

Hilgers argues that this partnership could severely harm Nebraska, particularly its vital livestock and grain industries, due to the state’s lack of charging infrastructure for electric trucks. The Nebraska Trucking Association has expressed serious concerns about the feasibility and cost of transitioning to an all-electric fleet, highlighting the practical challenges faced by the industry.

“This isn’t about cars. This is about a political agenda. This is about a movement that has developed a following and has backed companies into a corner that we simply cannot allow to be sustained,” Kent Grisham, president and CEO of the Nebraska Trucking Association, said.

The lawsuit seeks to nullify the Clean Truck Partnership not just in Nebraska, but nationwide. Hilgers emphasizes the need for a free market approach and argues that elected representatives, not private agreements between manufacturers and regulators, should determine any significant changes to national logistics policy.

A Three-Pronged Attack on Consumer Choice

Hilgers describes the push for electric trucks as a “three-pronged attack” involving truck manufacturers, California regulators, and the Biden administration. He claims these entities are engaged in an antitrust conspiracy to eliminate gas-based vehicles in favor of electric ones, without proper public or congressional input.

“At the end of the day, what we’re trying to do is tear up this agreement and allow the free market and the nation’s elected representatives to determine the pace and scope of any change in our national logistics policy,” AG Mike Hilgers said.

The lawsuit specifically targets the July 2023 Clean Truck Partnership agreement between CARB and truck manufacturers, which requires the adoption of zero-emissions technology in California. This agreement has far-reaching implications, as California aims for half of all heavy-duty trucks sold to be electric by 2035.