Why Are Cars So Expensive? Congress Demands Answers from Auto CEOs

Over the past decade, the average price of a new car has jumped more than 50%, and many Americans aren’t happy about it.

November 24, 2025 at 10:10 PM / News

For the first time since the 2008 financial crisis, the CEOs of Ford, General Motors, and Stellantis are set to sit down at the same table. The meeting will take place on January 14, 2026, during a congressional hearing examining the state of the U.S. auto industry — including how manufacturers set their prices.

According to Cox Automotive, the average new-vehicle transaction price in the U.S. topped $50,000 in September. Ten years ago, it was under $30,000. Senator Ted Cruz, who will lead the hearing, calls the surge the result of “burdensome, government-mandated technologies and aggressive environmental regulations.”

Industry analysts say the price spike isn’t only about regulation. Inflation, a shift toward higher-trim, feature-heavy models, and the growing influence of EV pricing — which has effectively pulled the rest of the market upward — have all contributed to the climb.

Lawmakers are also expected to discuss the auto industry’s transition to electrification, a contentious topic that continues to divide both politicians and manufacturers. Tesla’s vice president of vehicle engineering, Lars Moravy, has been invited to testify. Tax policy and tariffs will also be on the agenda, giving major automakers a clearer picture of what to expect from Washington in the coming years.

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