‘There will be watchdogs' on automakers' political donations

WASHINGTON — A chorus of criticism from consumers and interest groups over Toyota Motor Corp.'s political donations to certain federal lawmakers came to a head last week, prompting the Japanese automaker to do an about-face.

In a statement issued Thursday, July 8, Toyota — the top-selling automaker in the U.S. in the second quarter — said its political action committee will "at this time" stop contributing to members of Congress who voted against President Joe Biden's election certification in January.

The decision came after the Lincoln Project — a PAC formed in 2019 to prevent the reelection of Donald Trump — posted an ad criticizing Toyota's donations this year to 38 of the 147 Republican lawmakers who objected to the certification.

Toyota came under fire for those donations — totaling $56,000 — after a report released in June by watchdog group Citizens for Responsibility and Ethics in Washington identified the automaker as the company that had contributed to the most election objectors.

"Our company has long-standing relationships with members of Congress across the political spectrum, especially those representing our U.S. operations," Toyota said in its statement. "In fact, in 2021, the vast majority of the contributions went to Democrats and Republicans who supported the certification of the 2020 election."

The donation backlash is a reminder for Toyota and other companies to "play at their own risk," according to Jenna Bednar, a professor of public policy and political science at the University of Michigan.

"As long as our political space remains as polarized — as hotly polarized — as it is," she said, "I think this is the reality that they are going to have to learn to live with."

In January, after the deadly invasion of the U.S. Capitol, Toyota and other major leaders in the auto industry said they were reconsidering political contributions to lawmakers on both sides of the aisle.

Ford Motor Co. resumed its donations to lawmakers in April and did not rule out donations to lawmakers who objected to Biden's certification, according to a Reuters report.

Following the criticism directed at Toyota, the Dearborn, Mich., automaker said contributions by its employee PAC are "bipartisan and take into consideration many issues that are important" to the company and its customers.

General Motors also restarted donations after enhancing its employee-funded PAC's contribution criteria around character and public integrity, a spokesperson said.

Mark Rom, an associate professor of government and public policy at Georgetown University's McCourt School of Public Policy, said the Toyota blowback is "bad publicity that could have easily been avoided," especially given the relatively small contribution amount.

"I don't think the Democrats or Republicans are going to decide to vote on behalf of Toyota's interests because they got a $2,000 check to their campaign committee," Rom said.

Still, for corporations that decide to continue donations, they should know those contributions are not going to be invisible, he added.

"There will be watchdogs out there looking for them," Rom said. "If they find contributions that appear to be objectionable, they're going to raise alarms."