The U.S. Senate postponed a hearing originally set for next week to look into why automotive prices have surged to record levels. The delay was requested by Ford CEO Jim Farley who, in turn, came under fire from Texas Republican Ted Cruz. More from Headlight.News.
Sen. Ted Cruz criticized Ford CEO Jim Farley for delaying a hearing about vehicle affordability, but CEO Elon Musk not being required to testify was brushed off.
“Affordability” has become the watchword for 2026 — and while it covers everything from food to housing, a U.S. Senate committee wants to know why vehicle prices have been rising even faster than the rate of inflation over the last several years.
But a hearing scheduled for Jan. 14 has been postponed, primarily due to concerns raised by Ford CEO Jim Farley. That, in turn, prompted a harsh rebuke from Ted Cruz, chairman of the U.S. Senate Committee on Commerce, Science and Transportation. The Texas Republican alleged Farley is “terrified of testifying.”
A follow-up date has yet to be scheduled.
Affordability and the auto industry
If inflation was one of the big issues leading up to the November 2024 presidential election, affordability has become a central concern for American consumers ever since President Donald Trump was sworn in for a second term last January. The inflation rate itself eased slightly to 2.7% last month, but prices have surged significantly higher in some key economic sectors.
That’s notably true in the auto industry, where average transaction prices — which factor in sticker prices, options and discounts — ended the year just short of $50,000, according to J.D. Power, Kelley Blue Book and other data trackers. That was up from around $35,000 in 2015.
A spokesperson said Tesla wasn’t required to send Musk because it would cause a “circus.”
Analysts contend prices could have gone even higher had automakers fully passed on higher costs, including the collective $80 billion they’ve had to pay due to Trump tariffs on imported autos and auto parts, as well as on foreign-made steel and aluminum. Several manufacturers, including Porsche and Audi, have signaled they’ll pass on more of those duties with upcoming price hikes.
The Senate weighs in
Facing growing consumer frustration with ongoing inflation — and fears that they could face a severe setback in midterm elections this coming November — Republican lawmakers have been looking for ways to respond.
For his part, Cruz scheduled a hearing focused on automotive affordability, specifically inviting the CEOs of Detroit’s Big Three, General Motors’ Mary Barra, Stellantis’ Antonio Filosa, and Ford’s Farley. The rub: Cruz let Tesla send its vice president of engineering, rather than CEO Elon Musk. According to a report by Politico, the committee chairman was concerned that Musk’s presence would have created a “circus,” due to the billionaire’s ties to Trump and his prior role as head of the controversial Department of Government Efficiency.
Farley begs off
General Motors Chair and CEO Mary Barra said she would be happy to participate.
Barra and Filosa appeared ready to attend, Farley rejected the request. “GM is always ready to work with Congress to help shape the future of the auto industry,” GM said in a statement.
The decision to exclude Musk was one of the reasons why Farley begged off. “If a vice president of engineering is appropriate for the planned hearing, the other companies should have the opportunity to offer a similar witness,” Brian Smith, a lawyer from the firm Covington & Burling, wrote to the committee on behalf of Ford. A copy of the letter was obtained by Politico.
Ford also indicated it had a timing conflict, as the hearing would have overlapped the annual Detroit Auto Show. So did Ohio Sen. Bernie Moreno, a former car dealer scheduled to speak at the Motor City event.
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Stellantis CEO Antonio Filosa also agreed to participate in the committee hearing.
Cruz fires back
Farley’s stand triggered a harsh rebuke from Cruz who, it was reported, hoped to use the Jan. 14 hearing as a way to blame high costs on regulations supported by Democrats. The Senator said Farley was “terrified of testifying.”
“I don’t know if he was scared about having lost $19 billion for Ford shareholders on the misguided Ford Lightning or if he was embarrassed at having tried to swindle American taxpayers out of hundreds of millions of dollars gaming the expiration of the EV tax credit,” Cruz told Politico.
Looking forward, committee spokeswoman Phoebe Keller said lawmakers are “coordinating with the leaders of the auto industry to reschedule this hearing.”
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