The Justice Department (DOJ) has opened an antitrust inquiry into 4 major automakers who recently struck a deal with California to boost emissions standards for their nationwide fleets, The Wall Street Journal reports.
Why it matters: The report, if correct, signals the opening of a new and high-stakes front in the fight between California and the White House over vehicle emissions and mileage rules.
One way carmakers comply with increasing fuel economy standards — even without selling many hybrids or electric cars — is by using regulatory credits they stockpiled from previous years or purchased from competitors.
Why it matters: The standards are getting tougher now, and companies are not only drawing down their banked credits; they've stopped generating new ones, too. That could drive up their trading value, enriching some companies with credits to spare, while putting others at risk of non-compliance.
