California announced late Monday that it will cancel all purchases of new vehicles from GM, Toyota, Fiat Chrysler and other car companies that support US President Donald Trump in a showdown to strip the state of power to regulate tailpipe emissions.
California paid General Motors Co $58.7 million, Fiat Chrysler Automobiles $55.9 million, Toyota Motor Corp $10.7 million and Nissan Motor $9 million worth of new vehicles between 2016 and 2018.
Last month, Chevrolet, Ford, Fiat Chrysler and representatives from the Global Automakers Trade Association supported Trump's efforts to prevent California from implementing its emission standards that are far more strict than the preferred option for Trump's administration's plan.
In a tweet, General Motor spokeswoman Jeannine Ginivan said they were sad that California is going to stop buying the Hybrid Bolt.
The government will only purchase from manufacturers acknowledging the legal authority of California to implement emission standards starting in January.
These include Ford Motor Co, Honda Motor Co, BMW AG and Volkswagen AG, which entered into a deal with California in July to conform with new state emission standards for cars.
The Department of Justice launched a bribery investigation in the transaction in August and sent requests to the four firms last month.
"Car makers who have opted to be on the wrong side of history will be sacrificing their purchasing power in California," California Governor Gavin Newsom said in a tweet.
California bought $69.2 million in Ford cars over the three years, Toyota bought $565,000 and German manufacturers purchased none.
The state has announced that it will no longer automatically authorize state agencies to buy gasoline-powered sedans, despite exceptions for some public safety vehicles. More than a dozen other states have adopted the automobile laws of California.
On Friday, California and 22 other US states protested the decision of the Trump administration to remove the legal authority of California to implement automobile tailpipe emissions standards and mandate an increasing number of zero emission vehicles (ZEVs).
The move follows a similar complaint against the National Highway Traffic Safety Administration brought in September attempting to reverse a related ruling.
The Trump administration decided in August last year to set fuel efficiency standards by 2026 at 2020 rates, eliminating expected annual increases of 5 percent.
The actual specifications of the Trump administration were expected to increase modestly in the coming months relative to the initial proposal, with several car manufacturers anticipating an annual increase of around 1.5 million.
