CalPERS to Press Automakers for Cleaner-Burning Vehicles

The California Public Employees’ Retirement System voted Monday to put pressure on automobile makers to design cleaner-burning vehicles after Ford Motor Co. and eight other carmakers refused to appear for a scheduled meeting with the pension fund.

CalPERS, the nation’s biggest pension fund with $182 billion in assets, decided it would support shareholder proposals at Ford and General Motors Corp. that request a report on each company’s plans to comply with California’s new greenhouse gas emission standards.

A group representing the automakers sued the state of California in December over rules requiring cuts in carbon dioxide emissions, saying the state cannot regulate fuel use in cars. The suit seeks to stop the regulations from taking effect. CalPERS had demanded that representatives from the companies travel to Sacramento to explain why the fund shouldn’t use its clout as a big investor to try to force the companies to abide by the new law.

“Automakers didn’t want to come to our doorstep, so we’re taking the fight to theirs,” said California Controller Steve Westly, a member of CalPERS’ board.

The pension fund also will consider including two of the automakers in a public listing of companies that CalPERS says have poor economic performance, excessive executive compensation and poor corporate governance practices. The fund didn’t say which automakers would be the likely candidates for the list.

California is the first state to pass regulations that limit emissions of the heat-trapping gas tied to global warming.

The Alliance of Automobile Manufacturers said the law was an attempt to force automakers to build more fuel-efficient vehicles.

The Washington-based Alliance represents GM, the world’s largest automaker, DaimlerChrysler, BMW, Ford, Mazda Motor Corp., Mitsubishi Motors Corp., Porsche, Volkswagen and Toyota Motor Corp. The trade group joined California car dealers in filing the suit.