In areas that do I/M status checks (1996+ model years, OBD-II only) - yes, the car will automatically fail. Others run an I/M 240 - which is an ECM query and a run on a treadmill for 240 seconds. The problem lies with the ECM's I/M System Status and if it is updated or not. Only way to tell is to hook a scanner into the car and query the ECM for its I/M readiness - it will report back PASS, FAIL, or NOT READY
Conditions for updating the I/M System Status requires that each OBD II system perform at least one self-diagnostic test. The system monitor is completed when all of the DTCs that report to the system monitor have run - ie. PASS / FAIL state. Of course, any failures would be reported by a CEL. The headache comes in when the required test for a specified system has not run, l/M System Status is in a NOT READY state.
Example conditions that would set the l/M System Status indicator to NOT READY state:
- vehicle is new from the factory and has not yet been driven through the necessary drive conditions to complete the tests
- battery has been disconnected or discharged below operating voltage
- ECM power or ground has been interrupted
- ECM module has been reprogrammed/reflashed
- ECM has been cleared as part of a service procedure (reset a CEL)
Example vehicle systems that the l/M System Status indicator looks at (if applicable):
- Air conditioning system
- Catalytic converter efficiency
- Evaporative Emissions system (EVAP)
- Exhaust Gas Recirculation system (EGR)
- Fuel delivery system
- Misfire monitoring
- Oxygen sensor system / oxygen sensor heater system
- Air injection system (Emissions)
Personally, for me it was the EVAP system going bonkers before the emissions / state inspections. Always happens right before I take it in for testing - get a CEL, have to reset the ECM, drive for several days, I/M is now set, retest = PASS. Sometimes the emissions / state inspector will let me retest for free - most of the time I have to pay out of pocket. Kind of weird that the car is trouble-free for TWO years between emissions testing, and only acts up the week or the day I bring it in. This year I came in a month ahead of schedule and it flashed the CEL the day of testing. Oh well.