Can Ford and GM buy Trump’s favor?
Detroit’s automakers are contributing funds and vehicles to Trump's inauguration as policies on tariffs and EVs loom under the new administration.
Ford and General Motors said each of the automakers have pledged $1 million and a fleet of vehicles for President-elect Donald Trump’s January inauguration. The contributions underscore the significance of the incoming administration’s policies for Detroit’s automakers.
The Trump administration’s proposed actions, including imposing tariffs on imports from Mexico and Canada and potentially ending the federal EV tax credit, could heavily impact Ford and GM. Both companies are working to grow their electric vehicle offerings but have yet to achieve profitability in the segment.
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EV policies and tariffs could reshape industry
Ford CEO Jim Farley has expressed optimism about the administration’s willingness to engage with U.S. automakers. Earlier this month, Farley emphasized the company’s role in domestic employment and manufacturing, suggesting that the administration might value Ford’s perspective on policy decisions.
GM CEO Mary Barra noted that her conversations with Trump have shown him to be attentive to the concerns of manufacturers. Both executives reiterated their shared goals of bolstering U.S. manufacturing and creating jobs.
If Trump were to impose the 25% tariffs on Mexico and Canada that he has proposed, automakers like Ford and GM would have to contend with much higher production costs. Even vehicles manufactured in the United States would likely see price hikes since many parts still originate from outside of the U.S.
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Corporate contributions to inaugurations aren’t new
Ford and GM join a list of major corporations supporting Trump’s inauguration. Tech giants Amazon and Meta Platforms have also made donations to the event, which is expected to cost over $100 million. For context, Trump’s 2017 inauguration raised a record-breaking $106.7 million, while President Joe Biden’s 2021 inauguration raised $61.8 million.
A General Motors spokesperson noted that the company’s vehicle contributions are not unusual for inauguration celebrations, with the automaker having contributed vehicles to past inaugurations as well.
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Final thoughts
With the automotive industry navigating the transition to electric vehicles and responding to global economic pressures, Ford and GM’s support for Trump’s inauguration could reflect a strategic move to maintain favorable relations with the new administration. As tariffs and tax credits remain in focus, the alignment between government policy and automaker priorities may significantly influence the future of U.S. manufacturing.
While the donations aren’t unprecedented, their presence this time nevertheless appears as an olive branch to the incoming administration, whose policies could drastically alter the coming years for American automakers.
