Ford $F ( ▼ 0.15% ) finds itself at odds with Sen. Ted Cruz over a planned hearing regarding vehicle affordability, potentially straining the Detroit Three automakers’ relationship with the Trump Administration at a critical crossroad for the U.S. auto industry.
First things first: In November, Cruz (who chairs the Senate Committee on Commerce, Science, and Transportation) called for a meeting with Ford CEO Jim Farley, General Motors $GM ( ▼ 0.58% ) CEO Mary Barra, and Stellantis NV $STLA ( ▼ 1.18% ) CEO Antonio Filosa to testify on January 14 in front of the committee regarding the high cost of vehicles.
However, Ford has indicated that Farley would not be attending the meeting, citing several reasons in a letter sent to Cruz by Ford’s legal team, reports The Detroit News.
One reason given by Ford is the invite list, which in addition to Detroit Three brass, explicitly includes Tesla $TSLA ( ▼ 0.44% ) executive Lars Moravy, who is the company's vice president of vehicle engineering, instead of CEO Elon Musk.
The automaker also noted that Farley is not the best Ford representative for the meeting, given that it is tied to a Surface Transportation Reauthorization bill for federal highway funds that flow to states.
Why it matters: Cruz’s push forces Ford, GM, and Stellantis to justify $50,000 sticker prices in a public forum just as they lobby the Trump administration on tariffs, trade, and labor costs. Showing up risks political backlash, but skipping risks losing influence.
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Digging in: While Stellantis has yet to comment about the hearing, GM has said that Barra will attend if the other CEOs agree to testify, with a spokesperson for Cruz indicating that the meeting is still on the books, putting the Detroit Three in an awkward position as they try to work with the Trump administration on a host of issues poised to impact the industry for decades to come.
The United States-Mexico-Canada Agreement is up for review in 2026, which could have a major impact on the U.S. auto industry.
Some insiders believe that Trump, who has been very vocal about the high price of vehicles, might allow cheaper Chinese cars to be sold in the U.S. as part of his trade negotiations with Beijing, which would be a major blow to the U.S. auto industry.
Bottom line: For dealers and OEMs alike, these debates will ripple through vehicle supply, transaction prices, and profit margins well into 2026.
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