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California, 6 automakers finalize bilateral Clean Car Framework agreements

While California is challenging the Federal government in court to overturn the revocation of California’s waiver enabling the state to issue greenhouse gas restrictions on light-duty vehicles, it has finalized with six participating automakers individual bilateral agreements based upon a Framework unveiled last year.

Under the framework agreements, gasoline and diesel cars and light trucks will get cleaner through 2026 at about the same rate as the former Obama-era program.

Automakers who voluntarily agreed to the framework agreements are BMW of North America (including Rolls Royce for purposes of the agreement), Ford, Honda, Volkswagen Group of America (including VW and Audi), and Volvo.

The framework agreements are voluntary commitments that support continued annual reductions of vehicle greenhouse gas emissions through the 2026 model year, encourage an accelerated transition to electric vehicles, provide industry the certainty needed to make investments and create jobs, and save consumers money.

The auto companies party to the voluntary agreements will stay on course to make cleaner cars consistent with their individual production plans substantially to electrify their respective fleets and cut greenhouse gas emissions. The other states that have previously adopted California’s cleaner vehicle standards have notified each of the Framework automakers by letters that they will also support the Framework agreements.

Each of the automobile manufacturers that have finalized Framework agreements have made additional and individual commitments to expedite the transition to zero-emission vehicles. These agreements, designed to further advance innovation and investment, are memorialized in a separate appendix for each company, and are designated as Confidential Business Information because they relate to specific model production plans and similar matters. Generally they promote enhanced distribution of zero emission vehicles.


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