Big Three CEOs Flew Private Jets to Plead for Public Funds

[Midnight Mike]

The CEOs of the big three automakers flew to the nation's capital yesterday in private luxurious jets to make their case to Washington that the auto industry is running out of cash and needs $25 billion in taxpayer money to avoid bankruptcy.

Even as their companies fail, Ford and GM CEOs continue lavish lifestyles.

The CEOs of GM, Ford and Chrysler may have told Congress that they will likely go out of business without a bailout yet that has not stopped them from traveling in style, not even First Class is good enough.

All three CEOs - Rick Wagoner of GM, Alan Mulally of Ford, and Robert Nardelli of Chrysler - exercised their perks Tuesday by flying in corporate jets to DC. Wagoner flew in GM's $36 million luxury aircraft to tell members of Congress that the company is burning through cash, asking for $10-12 billion for GM alone.

http://abcnews.go.com/Blotter/WallStree ... 739&page=1 (http://abcnews.go.com/Blotter/WallStreet/story?id=6285739&page=1)

[T-Bird76]

I have to agree with the Senators who lambasted the three CEO's....while their company's are failing and their employee's are being laid off they waste how many tens of thousands of dollars on private jets. It’s a joke that they come asking for money and they don’t have any kind of turnaround plan. Even with the money Chrysler is going to fail or be absorbed into another company. The problem of the big three is all their own doing; they haven’t made competitive cars in a long time. If it wasn’t for the people’s jobs that were on the line I’d say let them fail. At the very least the current management needs to be booted to the curb.

[moose135]

I don't see the issue with using a private jet. First of all, it's not like it was just the three CEOs coming to DC - I'm sure they all brought advisers, lawyers, etc, so say if each had a group of 6 or 8, it's easier and more efficient to travel as a group, not worry about getting through security, ATC delays, and all the rest that goes into air travel today. Could you imagine the uproar if one of these guys were late to testify because their airline flight was delayed, canceled or diverted? Also, it affords them the opportunity to work as a group during the flight, and keep in touch with the office on the ground - after all, they are each the head of their company, not just some random mid-level manager. Finally, I know a number of companies with security policies that require this type of travel arrangement.

I always hear people say that the domestic auto makers "don't build cars people want to buy". Funny, but the Ford F-150 has been the best selling vehicle for some 25 years, and as of earlier this year, the F-150, Chevy Silverado, and Dodge Ram were all in the list of top 10 selling vehicles. Seems to me they are building vehicles that people want to buy - if people are buying big, profitable trucks, why would you stop building them? Even the Japanese companies have been producing bigger trucks and SUVs. And for all that, for 2007 total sales, GM continues to lead the US in sales, with Ford and Chrysler third and fourth on the list. Sounds to me like they are building some cars that people want to buy.

By the way, in Europe last year, 4 of the top 10 selling cars were from US companies, two from Ford and two from Opel (GM's European division). If people continue the recent trend of wanting smaller cars (and we'll see if that continues if gas prices remain relatively low) we may see more of these US cars sold here.

[Derf]

wow, I was cheering Tom on but what you say makes perfect sense Moose.... Thanks guys

[NIKV69]

I think the whole "you took a private jet here to beg for money" is being all blown out here. Sure it looked kind of bad but it sure seemed the politicians were looking for an out because they really don't want to give them anything. I mean GM? Giving money to them is like throwing it away. They were toast before this and they will be no matter how much you give them. Crappy cars, fierce competition and unions with bad managment sealed their fate a long time ago. Even if they survive they have to totally restructure and that will cost jobs so let them die.

[PhilDernerJr]

We can point out facts of American made cars that are top sellers, but the fact is that no matter how much they might sell, these companies are not making profit. That's the bottom line, and they should be cutting corners a little more to make profit instead of asking for bailouts with no plan for twenty five billion dollars.

Regardless, with the team they probably brought, I'd bet the costs weren't as high as implied compared to a bunch of biz class seats.

[LGA777]

While this would cause large job losses why not do a little brand reductions to somewhat streamline the big 3. The other day in Manhattan I saw a Lincoln Pick-up truck. It looked pretty nice but I did not realize Lincoln made actual trucks now, I guess it's new. Do we really need the Mercury brand now? Wouldn't the combination of Ford and Lincoln be enough?

Over at GM why not slash one of or maybe combine Pontiac and Buick? Have Chevy on one end, Caddy on the other and 1 mid brand in between. GMC trucks are so similar IMO to Chevy's are the really needed? I know GM already eliminated Oldsmobile but desperate times call for desperate measures.

Just my two cents.

LGA777

[Midnight Mike]

GM to return two leased jets amid criticism

http://www.reuters.com/article/newsOne/ ... EG20081121 (http://www.reuters.com/article/newsOne/idUSTRE4AK5EG20081121)

General Motors Corp will return two of its leased corporate jets amid intense criticism in Washington this week on the luxury travel arrangements of its chief executive even as the company pleads for federal aid.

CEO Rick Wagoner was in the capital to testify on the company's dire financial situation but his testimony was overshadowed by irate lawmakers who blasted him for flying on a private jet to ask for public funds and failing to make personal sacrifices in exchange for federal assistance.

Chief executives from Ford Motor Co, and Chrysler LLC, who were also there to plead for $25 billion in federal aid, came under fire too for flying to Washington in private jets.

GM spokesman Tom Wilkinson said on Friday GM decided to return the aircraft because of a "really aggressive cutback in travel."

The company, which is in a cost-cutting mode, is scrutinizing every trip, he said, but declined to disclose the name of the company it leases the airplanes from.

[T-Bird76]

I always hear people say that the domestic auto makers "don't build cars people want to buy". Funny, but the Ford F-150 has been the best selling vehicle for some 25 years, and as of earlier this year, the F-150, Chevy Silverado, and Dodge Ram were all in the list of top 10 selling vehicles. Seems to me they are building vehicles that people want to buy - if people are buying big, profitable trucks, why would you stop building them? Even the Japanese companies have been producing bigger trucks and SUVs. And for all that, for 2007 total sales, GM continues to lead the US in sales, with Ford and Chrysler third and fourth on the list. Sounds to me like they are building some cars that people want to buy.

Moose your talking about one car, Ford, GM, and Dodge can't survive on selling one car. Out of top ten best selling cars last year 5 were Asian build Sedan. I had American cars for years but the fact is Ford, Chrysler, and GM don't make cars people want or you wouldn't see these three company's come begging for money. You can't justify the fact either that flew there in private jets, sorry don't even try. Regardless of what they can discuss on the hour flight from DTW it sends a piss poor message. GM continues to lead the market in sales is due to their fleet sales.

[Gerard]

> You can't justify the fact either that flew there in private jets, sorry don't even try. <

Uh I think he just did. :lol: :lol: