Ford says U.S. Justice Dept., California end probe into emissions issue

By David Shepardson

WASHINGTON (Reuters) – Ford Motor Co confirmed on Friday the U.S. Justice Department and California Air Resources Board have closed a lengthy investigation into the No. 2 U.S. automaker’s emissions certification process without taking any action.

Ford said in a securities filing that reviews by the U.S. Environmental Protection Agency and Environment and Climate Change Canada remain open.

Ford first disclosed the criminal probe in April 2019 and earlier hired outside law firm Sidley Austin and experts to investigate its vehicle fuel economy and testing procedures after employees raised concerns about analytical modeling that is part of its fuel economy and emissions compliance process.

Ford said Friday the investigations’ closure was “consistent with the company’s own investigation and conclusion that we appropriately completed our certification processes.”

Ford declined to releasing findings from its own investigation and said it has not changed any fuel economy ratings as a result.

Ford faces a class-action lawsuit from owners who claim Ford “cheated on its fuel economy testing on some of its best-selling and most popular trucks” and said the issue affected over a million Ford truck owners.

The lawsuit claims that “independent testing conducted on Ford F-150 and Ford Ranger vehicles has vindicated the concerns of both consumers and Ford’s own employees: Ford did not follow appropriate coastdown testing procedures, and instead disclosed inaccurate resistance figures to increase the MPG Rating of its F-150 and Ranger vehicles.” Coastdown testing measures the effects of wind and road resistance on a coasting vehicle.

The lawsuit said “extra fuel costs for all 2018 and 2019 F-150s” would total approximately $2.32 billion for city driving, $2.09 billion highway, and $1.9 billion combined.”

Ford declined to comment on the lawsuit Friday but argues in court papers it should be dismissed, saying owners are “implausibly claiming that Ford had a duty to disclose the ‘true fuel economy’ for the subject vehicles, as if such a figure actually exists.”

(Reporting by David Shepardson; Editing by Steve Orlofsky)

California vows to ban sale of new gasoline-powered passenger vehicles in 2035

By David Shepardson and Nichola Groom

WASHINGTON/LOS ANGELES (Reuters) – California plans to ban the sale of new gasoline powered passenger cars and trucks starting in 2035 in a dramatic move to shift to electric vehicles and reduce greenhouse gas emissions, Governor Gavin Newsom said on Wednesday.

Newsom told a press conference the state was committing to a “firm goal” to phase out the sale of new gasoline-powered vehicles by 2035 and was encouraging other states to take similar action.

Newsom’s order labeled the elimination of gasoline-powered vehicles a “goal” and a “target” after his office said earlier his order would require the sale of nothing but zero emission passenger vehicle starting in 2035.

The move would be the most significant to date by a U.S. state aimed at ending the use of internal combustion engines for passenger travel.

California is the largest U.S. auto market, accounting for about 11% of all U.S. vehicle sales, and many states choose to adopt its green vehicle mandates.

Newsom also wants the state legislature to stop issuing new permits by 2024 allowing use of hydraulic fracturing technology for oil and gas drilling.

U.S. President Donald Trump has sought to bar California from requiring the sale of electric vehicles, while his rival Joe Biden has pledged to spend billions to speed the adoption of electric vehicles.

California said it was joining 15 countries that have made similar pledges, including Britain.

California’s clean vehicle goals have not always come to pass and in some cases have been pushed back.

Newsom said the California Air Resources Board (CARB) will develop regulations to mandate that 100% of in-state sales of new passenger cars and trucks are zero-emission by 2035, which would cut greenhouse gas emissions by 35%. The board also plans to mandate by 2045 that all operations of medium- and heavy-duty vehicles be zero emission where feasible.

Newsom’s executive order does not prevent Californians from owning gasoline-powered cars or selling them on the used car market.

In response to a record wildfire season in the state, Newsom earlier this month said California needed to “fast track” its efforts to reduce greenhouse gas emissions and combat climate change. “Across the entire spectrum, our goals are inadequate to the reality we are experiencing,” he said on Sept. 11 while touring a burned area in the state.

A group representing major automakers including General Motors Co, Toyota Motor Corp and Volkswagen AG said “neither mandates nor bans build successful markets.”

The group noted electrified vehicles account for less than 10% of new vehicle sales in California, which is still best in the United States.

California and nearly two dozen other U.S. states have sued the Trump administration, which has rolled back Obama era vehicle emissions standards and sought to undo California’s authority to set strict car pollution rules.

The administration has been waging a multi-pronged battle to counter California’s efforts to fight climate change by reducing emissions of greenhouse gasses from vehicles.

(Reporting by David Shepardson and Nichola Groom; Editing by David Gregorio and Tom Brown)