The US Congress has summoned the heads of General Motors, Ford, Tesla and Stellantis to a hearing before the Senate Commerce Committee to explain why car prices have grown so rapidly recently. It is the first time since the 2008 economic crisis that top officials from the automakers will testify before Congress.
The hearing is scheduled to take place on January 14, analyzing the reasons for the price increase, as well as explaining how US federal legislation affects car prices and what electrification will mean for every American who buys a car.
The visit to Congress is not at the best time – Ford has many problems and recalls. The manufacturer was recently forced to issue three recalls in one day related to safety – malfunctioning rear lights, parts of the body that can separate from the car and defects in the windshield that make it difficult to see are just one small part of a wider set of problems.
General Motors recently adjusted its electrification strategy, so they also have some financial restructuring tasks, while Stellantis, which includes Jeep, Dodge, RAM and Chrysler, has long been plagued by instability, as well as rumors that the concern could be split or some brands closed or at least sold.
Senator Ted Cruz, who represents the Republican Party and the state of Texas, and is the leader of this hearing, wants to explain why the average transaction price for the purchase of one car has increased from 30 thousand to 50 thousand US dollars in about 10 years.
He sees various government-imposed technologies as well as “radical emission reduction regulations” as some of the reasons for the jump in prices. Other members of Congress also want detailed information on things that affect the cost of manufacturing cars, as well as the final price to the buyer.
