CEOs of the Detroit Three to Appear Before Congress for the First Time in Decades Due to Rising Car Prices | Carscoops

      Lawmakers to Question Ford, GM, and Stellantis Executives About Pricing, Regulations, EV Policies, and Trade Issues

      9 hours ago

      by Stephen Rivers

      The CEOs of Ford, General Motors, and Stellantis are set to testify before Congress in January. The hearing will concentrate on pricing, regulations, EV policies, and trade discussions. Senator Ted Cruz describes the session as a necessary reality check regarding affordability standards.

      For the first time in nearly two decades, the leaders of Ford, GM, and Stellantis will convene before Congress. The Senate Commerce Committee has summoned Ford's Jim Farley, GM's Mary Barra, and Stellantis' Antonio Filosa to provide testimony on January 14, in a prominent hearing examining the automotive industry's perspective on federal transportation policy and vehicle affordability.

      The discussion will also address the challenging transition to electrification, a topic that continues to generate division among policymakers and automakers alike. Tesla's VP of Vehicle Engineering, Lars Moravy, has been invited to contribute his insights on this subject.

      More: Lawmakers Seek Explanations From Hertz Regarding AI Rental Damage System

      The last time the CEOs of these three Detroit automakers appeared together on Capitol Hill was in late 2008, during the financial crisis, bailout discussions, and a time when the industry’s future appeared quite uncertain. The current pressure points may differ, but they remain equally significant.

      Why Bring Them Together Now?

      Senator Ted Cruz, who is leading the hearing, has dubbed it “Pedal to the Policy: The Views of the American Auto Industry on the Upcoming Surface Transportation Reauthorization.”

      According to reports from the Union-Bulletin, the hearing will address fuel economy and emissions mandates, tariffs, federal EV policies, new vehicle pricing, and how automakers intend to navigate the coming decade. Cruz characterizes the gathering as a long-overdue assessment of affordability.

      “The average price of a car has more than doubled over the past ten years,” stated Cruz, attributing this surge to “burdensome government-mandated technologies and extreme environmental regulations.”

      What’s Driving Up Costs?

      It’s evident that the average transaction price (ATP) for new vehicles is significantly elevated at present. Data from Cox Automotive indicates that it surpassed $50,000 in September.

      A decade prior, that number was in the low $30,000s. Analysts suggest that various factors, not limited to regulation, contribute to this trend. Inflation, tariffs, premium trims, and an increased number of EVs on the market all play a role.

      Additionally: EVs Now Move Faster Than Gas Cars in the Used Market

      Republicans assert that earlier policy changes, such as the repeal of federal EV mandates and CAFE targets under the One Big Beautiful Bill Act, are steps toward reducing prices. However, Cruz contends that lawmakers need to take further action. This discussion occurs at a crucial time for the U.S. automotive landscape.

      The debate arises as the U.S.-Mexico-Canada Agreement (USMCA) is approaching renewal or renegotiation by July 1. If it is not renewed, the consequences could lead to increased vehicle costs, regardless of any new legislation.