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Committee postpones hearing calling Detroit Three CEOs to Washington

Breana Noble and Grant Schwab, The Detroit News on

Published in Business News

A Senate committee has postponed a hearing that was calling each of the Detroit Three automakers' CEOs for joint testimony for the first time since late 2008 amid the global financial meltdown.

The delay from Jan. 14 comes after Ford Motor Co. objected to sending its top brass to Capitol Hill in a standoff with U.S. Sen. Ted Cruz, R-Texas, chairman of the Senate Committee on Commerce, Science and Transportation. The hearing that had been slated during the Detroit Auto Show is expected to touch on fuel economy regulations, vehicle affordability, a bumpy transition to electric vehicles and more.

“The Commerce Committee is coordinating with the leaders of the auto industry to reschedule this hearing," committee spokesperson Phoebe Keller said in a statement. "We look forward to this important conversation on auto affordability, the successful repeal of burdensome CAFE standards, and the revival of U.S. domestic vehicle manufacturing.”

Ford declined to comment on the postponement. General Motors Co. spokesperson Liz Winter said the company remains in regular communication with the committee.

"GM is always ready to work with Congress to help shape the future of the auto industry," she said in a statement. "We ... welcome the opportunity to share more about GM’s leadership, innovations, and U.S. investments."

The Detroit News also left an inquiry with Chrysler parent Stellantis NV.

Ford made objections to the hearing's subject matter, invite list and scheduling. It was set to take place on the industry and press day of the annual Detroit Auto Show — an event Ford has called “Super Bowl week for autos." The BlueOval is slated to hold a press conference focused on its off-road lineup the evening before at Huntington Place. The kickoff of Ford's racing season also is scheduled for the following day at Michigan Central Station, including the much-anticipated return to Formula 1 via a powertrain partnership with Red Bull Racing.

In addition to inviting Ford CEO Jim Farley, GM CEO Mary Barra and Stellantis CEO Antonio Filosa, Cruz notably invited Tesla Inc. executive Lars Moravy, who is the company's vice president of vehicle engineering, to testify. The committee, however, didn't request the presence of CEO Elon Musk, who campaigned for President Donald Trump and led the White House's cost-cutting Department of Governmental Efficiency last year.

 

Through an outside attorney, Ford in a letter to Cruz said without mentioning Tesla that the other companies should have the opportunity to send executives of similar rank to Tesla's.

GM had said Barra would attend if other invited CEOs also were testifying. In addition to the auto show, she is set to appear at an evening event marking the opening of the company's new global headquarters at the Hudson's Detroit building. That wasn't going to affect Barra's potential visit to Washington, D.C., however.

The hearing is titled "Pedal to the Policy: The Views of the American Auto Industry on the Upcoming Surface Transportation Reauthorization,” but Cruz had cast it as an opportunity to discuss auto regulations and rising average vehicle prices.

Surface Transportation Reauthorization bills are typically passed once every several years and lay out plans for billions of dollars worth of federal highway funds that flow to states. Those funds have limited direct impact on automakers, though past legislative vehicles for reauthorizations — like the 2021 Infrastructure Investment and Jobs Act — have included programs and tax credits with significant implications for the auto industry.

Such bills also authorize safety programs at the National Highway Traffic Safety Administration, like the agency's Federal Motor Vehicle Safety Standards and the New Car Assessment Program. Ford has advocated for changes that would modernize those detailed and technical programs.

Rumors have swirled that Cruz is eyeing a run for president. He brought up the hearing in early December during an Oval Office rollout of a proposal to slash fuel economy rules. Farley and Filosa were present and standing a few feet away from Cruz.


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