$1M carmaker gifts for Trump, not Biden
Ford, GM and Toyota donations to Trump's inauguration "very smart"
Ford Motor Co., General Motors and Toyota have joined Boeing, Apple and Meta (Facebook, Instagram, Threads, WhatsApp) with commitments of seven-figure contributions in support of President-elect Donald Trump’s inauguration, earning praise from auto industry analysts who say the dynamic landscape requires such action.
“Very smart move for GM and Ford and Toyota to donate to the Trump inauguration,” said longtime industry observer John McElroy, host of “Autoline After Hours.”
“The president is a very transactional person. You do something nice for him, he’ll do something nice for you,” he told me. “So why not start out the new administration on the right foot?”
The auto industry, which is going through rapid change with its transition to electric vehicles, is facing review of federal policies that involve emissions regulations, tax credits for electric vehicle buyers and tariffs on auto parts and products.
Now, more than ever, automakers must engage and make their voices heard, said Marick Masters, professor emeritus at the Mike Ilitch School of Business at Wayne State University in Detroit. The $1 million donations make sense, he said.
“The contribution shows a commitment to unifying the nation in the hope that Trump 47 will lead America into a more prosperous and peaceful future,” Masters told me. “It is a recognition that fundamental change is on the horizon and the stakes are extremely high, both domestically and internationally. Business will have a much stronger voice in economic and regulatory policies. There is a change to reduce substantially the cost of business under Trump 47.”
Trump, along with his top adviser Elon Musk, CEO of Tesla, have said slashing regulations will be a key priority. Reuters reported exclusively that Trump is looking to eliminate a car-crash reporting requirement that Musk opposes.
While competitors watch Musk closely, Ford CEO Jim Farley said earlier this month, “After 120 years, we’re pretty experienced with policy change. I think Ford is very well-positioned.”
Who gave $1M for Biden’s 2021 inauguration
Inaugural committees, unlike campaign committees, may accept unlimited contributions directly from corporations and labor organizations, according to the Federal Election Commission (FEC). A report with details must be filed within 90 days of the inaugural ceremony.
Trump, a Republican first elected in 2016, raised $106.7 million for his 2017 inauguration.
By contrast, President Joe Biden raised $61.8 million for his 2021 inauguration. While his inaugural committee funded celebration events over five days, many were virtual because of the COVID-19 pandemic.
The Democrat accepted $1 million gifts from defense contractors Lockheed Martin and Boeing, Bank of America, AT&T, Comcast Corp., Qualcomm Inc., Pfizer, Masimo Corp. medical tech, the International Brotherhood of Electrical Workers (IBEW) and Levantine Entertainment, which produced the Oscar-winning film “Hidden Figures,” according to FEC reports.
Contributions are higher from Detroit automakers this cycle than in years past:
GM donated at the $500,000 level for Biden, along with Amgen drugs, Charter Communications broadband provider, Centene Management Co. managed healthcare, Dow Chemical, FedEx, Microsoft, and steelmaker Nucor Corp., reported Business Insider.
Ford donated at the $250,000 level for Biden, along with Anheuser Busch Companies, Airbnb, Doordash, Inc., Dupont Specialty Products USA and Higherschool Publishing Co., Cannae Holdings LLC investments and Secure Identity LLC (that runs CLEAR screening at airports).
Toyota was not listed in federal filings as a major contributor to Biden.
Biden’s inaugural committee declined to accept donations from oil, gas and coal companies.
Analyst: ‘It’s just good business’
Jon Gabrielsen, a retired industry consultant based in Ann Arbor, Mich., told me, “The automakers are strategically positioning themselves in advance of tough issues that will need to be negotiated. It’s just good business.”
Michael Beckel, a former journalist at the non-profit Center for Public Integrity and now research director of the bipartisan political reform group Issue One, told CNN, “Money is a way of building relationships in Washington. Everyone is racing to make friends.”
The transfer of power between presidents represents a “hallmark of American democracy,” according to the White House Historical Association.
“The activities that surround a presidential transition are remarkable. The new president has just two months to plan a new administration and on Inaugural Day begin to move the first family into the White House,” the website says. “… Then the pressures of a new job and settling into a new home and office environment will begin. It is an exciting and challenging period for all concerned.”
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Great idea to pursue this angle. I learned a lot.
Great article, Phoebe. I always learn so much from you. I work for an advertising agency that supports automotive, and this whole transition to electric has been fascinating and, at times, baffling. And while Ford is #2 now in EVs, the new family of GM electric SUVs are stunning, as is the Silverado and GMC electric pickups. I think GM will soon surpass Ford as the #2 electric vehicle maker in the US. Their products appear to be top-notch.