Regulation
Volvo Group North America announced a settlement with the California Air Resources Board, agreeing to pay nearly $197 million to resolve allegations concerning undisclosed auxiliary emission control devices on some of its heavy-duty truck engines. The settlement covers approximately 10,000 model year 2010-2016 trucks and includes warranty extensions and software updates for about 7,200 model year 2014-2016 engines. Volvo Group stated it does not admit liability but will record related charges in its second-quarter financial results.
U.S. congressional bipartisan lawmakers have reached a preliminary agreement on the Build America 250 Act, a five-year surface transportation reauthorization bill that includes provisions to establish a national regulatory framework for autonomous commercial vehicles. The bill requires the Secretary of Transportation to develop safety standards within 6 months to 2 years and allows manufacturer self-certification. Industry reactions are divided: autonomous vehicle companies welcome unified federal rules, while independent driver associations worry about safety risks from self-certification.
In a major opinion issued Thursday, the U.S. Supreme Court sided with truck accident victims, ruling that freight brokers are not shielded by federal law from liability for negligently hiring unsafe carriers, enabling states to impose stricter oversight. The case, stemming from Shawn Montgomery v. C.H. Robinson, is now remanded to the appellate court for further proceedings, with far-reaching implications for the industry.
ArcBest shareholders approved at the annual meeting the reincorporation of the company from Delaware to Texas by a vote of 13.9 million to 6.9 million, with the change expected to take effect around May 15. The company's board believes that Texas business regulations provide clearer decision-making guidance, which can reduce opportunistic litigation, and the company has 17 facilities in Texas, resulting in stronger operational ties.
A federal judge approved a $3 million settlement by Knight-Swift Transportation Holdings over allegations of excessive 401(k) fees, potentially compensating about 100,000 employees.
FMCSA will expand the application scope of the Motus registration system in Q2, which aims to simplify the registration process, enhance security verification, and gradually replace multiple existing registration systems. The new phase will begin on May 19 and involve various transportation-related entities.
The U.S. Court of Appeals for the District of Columbia Circuit on Tuesday denied a request to suspend the FMCSA's new nonresident CDL rule, ruling that the plaintiffs failed to meet the strict standards for a stay. The rule requires nonresident drivers to hold an I-94 form and a valid passport, and to fall under H-2A, H-2B, or E-2 visa categories; otherwise, they will be unable to renew their licenses, potentially affecting 97% of the approximately 200,000 nonresident CDL holders over the next five years.
Toyota plans to build its first hydrogen refueling station at its North American Parts Center in Ontario, Southern California, and, together with Hyroad Energy, deploy 40 hydrogen fuel cell Class 8 trucks for transporting finished vehicles and parts from ports to dealers. The station is expected to be completed in early 2027 and will be open to non-Toyota customers. This move is seen as a key step in Toyota's 2050 zero-emission goal in the commercial vehicle sector.
The California Department of Motor Vehicles (DMV) announced on April 28 the adoption of new regulations, lifting the ban on driverless trucks weighing over 10,001 pounds operating on public roads, allowing autonomous freight to operate in California. The new rules aim to enhance safety, oversight, and enforcement while providing manufacturers with a clear path to commercialization. Manufacturers must complete a two-phase testing program totaling 1 million miles and submit safety cases. Industry insiders have welcomed the move, believing it will improve the efficiency and safety of freight transportation.
New York State has formally sued the U.S. Department of Transportation (DOT) and the Federal Motor Carrier Safety Administration (FMCSA) over the withholding of $73.5 million in federal highway grants. The dispute centers on whether the state's issuance of commercial driver's licenses (CDLs) to non-residents, including non-citizens, complies with federal standards. The state government insists its practices are compliant and alleges that federal pressure to revoke the relevant licenses is unlawful.