Nebraska Sues Truck Manufacturers, Alleging Collusion to Limit Diesel Truck Availability Amid Electric Transition

The state of Nebraska has taken legal action against several prominent heavy-duty truck manufacturers, alleging a deliberate attempt to limit the availability of diesel-powered semi-trucks. This, according to Nebraska Attorney General Mike Hilgers, is in alignment with California’s Advanced Clean Fleets regulation, which mandates a shift to electric trucks by 2035.

The lawsuit contends that the manufacturers engaged in a “conspiracy” that contravenes U.S. antitrust laws by “unreasonably restraining trade.” Hilgers argues that this collusion has resulted in increased prices, reduced production levels, and additional costs impacting businesses and consumers alike, with significant adverse effects on Nebraska’s logistics, agriculture, and biofuel industries.

Strengthening his argument, Hilgers pointed out that the defendants hold a substantial share of the market for trucks in Nebraska, effectively creating an oligopoly. This market dominance leaves Nebraskan consumers with limited options other than to comply with the manufacturers’ strategic objectives. The lawsuit highlights that these truck manufacturers are hiking prices on combustion-engine vehicles while curtailing their output, essentially passing down the cost and negative impacts of the transition to businesses and consumers.

The complaint also touches upon the readiness of states like Nebraska to transition to electric trucks, citing the absence of sufficient fueling infrastructure outside California. The lack of refueling stations makes electric vehicles “not an alternative product” viable for Nebraskans. Existing legislation such as the 2023 Bipartisan Infrastructure Law has, however, earmarked $7.5 billion for establishing a network of 500,000 electric charging stations across the U.S. The Biden administration has been proactive in advancing initiatives aimed at reducing vehicular and other harmful emissions. Additionally, President-Elect Donald Trump has signaled an intent to end what he terms as Biden’s assault on the internal combustion engine.

While the debate over the transition to electric vehicles continues to unfold, the legal challenge brought forth by Nebraska poses pivotal questions on the balance between state and federal directives in the broader push towards sustainable transportation solutions.

For further details, readers can access the full filing here.