ABC News- 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. 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. “We want to continue the vital role we’ve played for Americans for the past 100 years, but we can’t do it alone,” Wagoner told the Senate Banking Committee.While Wagoner testified, his G4 private jet was parked at Dulles airport. It is just one of a fleet of luxury jets owned by GM that continues to ferry executives around the world despite the company’s dire financial straits. “This is a slap in the face of taxpayers,” said Tom Schatz, President of Citizens Against Government Waste. “To come to Washington on a corporate jet, and asking for a hand out is outrageous.”
Wagoner’s private jet trip to Washington cost his ailing company an estimated $20,000 roundtrip. In comparison, seats on Northwest Airlines flight 2364 from Detroit to Washington were going online for $288 coach and $837 first class.
After the hearing, Wagoner declined to answer questions about his travel.
Ford CEO Mulally’s corporate jet is a perk included for both he and his wife as part of his employment contract along with a $28 million salary last year. Mulally actually lives in Seattle, not Detroit. The company jet takes him home and back on weekends. Mulally made his case Tuesday before the committee saying he’s cut expenses, laid-off workers and closed 17 plants.
“We have also reduced our work force by 51,000 employees in the past three years,” Mulally said.
Yet Ford continues to operate a fleet of eight private jets for its executives. Just Tuesday, one jet was taking Ford brass to Los Angeles, another on a trip to Nebraska, and of course Mulally needed to fly to Washington to testify. He did not address questions following the hearing.
“Now’s not the time to do that sort of thing,” said John McElroy of the television program “Autoline Detroit.” “Now’s the time to be humble and show that you’re sharing equally in the sacrifice,” McElroy said.
GM and Ford say that it is a corporate decision to have their CEOs fly on private jets and that is non-negotiable, even as the companies say they are running out of cash.
I can hear the apologists already.
You know a person makes TO MUCH MONEY, when they dont CARE what the cost of ANYTHING IS’.
they just SPEND IT, and dont give a DARN.
Wow.
These CEOs could also save a lot of money if they lived in an apartment on 8-Mile Road, or maybe if they built a small executive condo in the middle of the proving grounds. And if they ate at McDonald’s every day for lunch…cripes, what this flight costs isn’t even a rounding error on the daily operating expenses of a company like GM.
Oh, and most of us wouldn’t know the CEOs from the standard-issue sales guy in any airport, but these guys can’t be alone at Detroit Metro.
The board members should be ashamed of themselves. Americans should also be ashamed of themselves for accepting and perpetuating this behavior by buying American cars.
Oh wait, isn’t that what this is all about,… these companies are not selling enough cars. Hmmm, maybe most people are doing their part by not rewarding this behavior.
The fact that American-made cars for the most part SUCK is beside the point here. Consumers have a responsibility to vote their approval of a company with their wallets. When consumers are being responsible then the system works. If these companies can get the government to subsidize them or bail them out, the system DOES NOT work.
These car companies do not deserve a bailout, period.
Just wait until the Chinese own all of the “big three”. Things are changing…
Idiots. They could fly coach like the rest of us slaves. Arrogant management, arrogant unions, screw all of them. Toyota makes full size trucks too.
Mulally lives in Seattle? That’s just not right. But wait! There’s more! From MarketWatch:
SAN FRANCISCO (MarketWatch) — Ford Motor Co., in the middle of a wrenching restructuring that already has led to plant shutdowns and thousands of job cuts, said Friday that it will pay its new chief executive a 2 million base salary as well as an $18.5 million bonus.
Alan Mulally also will receive 4 million stock options priced at the grant date’s current fair-market value of $8.28 along with 600,000 restricted stock units, according to the regulatory filing.
Mulally also has the option to live in temporary housing in Southeast Michigan for the first two years and is eligble for relocation assistance. He will be required, for security reasons, to use the company aircraft for travel. On personal business trips, he’s allowed to bring friends and family at Ford’s expense.
I want that guy’s job.
Fine. I don’t want Congress spending another day wasting time and fussing over these guys form of transportation.
I want answers and solutions now and no more public undressing of these executives. Quit wasting time with this bullshit.
*shrug* Their boards decided they were worth the money for the job, so suck it up and live with it you pansies. They negotiated a pretty sweet deal and guess what, they can be fired if they aren’t doing their jobs. They also will be fired if they go into bankruptcy, which is the next step anyway.
I don’t see the UAW saying it will take a pay cut to save the companies a few billion — in fact they just said they don’t give a crap that it’s the American consumer’s fault and nothing to do with them.
So I’d say, if anything, it’s the whole corporate culture of those companies, and they all should just go bankrupt already so we can get cheaper and more fuel-efficient cars.
The drop in steel/scrap and other prices hasn’t pushed through the economy yet, so they are whining before their supplier prices start dropping. Not getting any better anytime soon, except for the lawyers.
Let them go tits up.
I don’t know what all the fuss is about. I’m a BIG man and I like my space on a plane. The food would be better in a private jet, too.
Check to see if any of the CEOs have bigger dicks too.
IF Congress does pass a bailout they are fully able to take away all the toys and put whatever conditions on the package they wish.
People in glass house shouldn’t throw stones. While no one forces people to buy cars from the big three, we are forced to pay taxes. Lawmakers lashing out at these guys have virtually all of their federal and private expenses paid for by the lobbyists and taxpayers. They also have receive medical, dental and retirement benefits that the public funds but is not allowed to utilize. Many of these guys are also chauffeured to and from work in luxury cars, all funded by the taxpayers.
Class warfare is going to destroy the US if Congress doesn’t do it first.
GM has a market cap. of $1.7 billion.
Ford has a market cap. of $3.01 billion.
So why doesn’t Warren Buffett or Bill Gates just buy both companies with some of their spare cash?
The answer is, Warren Buffett and Bill Gates know that these companies are losers, with terrible management.
Legends in their own mind – they don’t get it yet do they
Its amazing here they are demanding money and not one word of any compromises on pay , perks or whatever from either the top execs , union leaders or even the rank and file workers
No matter what the American auto execs say when I see an older women wearing a babooshka ,
driving a Toyota Corolla , I know that the US automakers and especially GM have lost market share and profitability
Lets see:
China wants metals…
USA ships all METAL to china..
USA INFLATES price of metal..
USA auto makers BUY BACK METAL PARTS..
USA auto makers Inflate PRICES on goods from OTHER countries..that cost 1/10 of the cost MADE in USA.
USA auto makers put PARTS together in USA and MARK THE PRODUCT==MADE IN USA.
USA auto maker, MAKES TO MANY CRAP CARS…
USA CEO and upper management makes MORE money then ANY other WORLD Auto maker..
security reasons? who would even recognize these guys on the street? as others have noted, more recognizable CEOs like Bill Gates fly commercial.
OK, forget the actual cost – it is after all a drop in the bucket. but they did this AFTER the enormous stink over the AIG spa holiday.
these CEOs are so deep in the Rich Guy bubble that they had no idea how conspicuous expenditure would look under the circumstances.
#1 Laughs.
They are going to need some bodyguards if they don’t sell those Jets and take a pay cut. There is a rift in America. Watch the congressional testimony; every Congressman comments on the amount of anger in the streets.
#25 – SnotLikeBlasterpoop,
Toyota does indeed make Land Bruisers and Sequoias. However, their portfolio of vehicles is more diversified, so to speak. So, when their stupid enormous gas guzzling pieces of shit failed to sell, at least they had the prius, yaris, hybrid camry, etc. to sell. GM had the best electric vehicle in the world, the EV-1. It was a car so good it made Toyota nervous.
In response, Toyota built the electric motor currently in use in the prius. What did GM do with a car so good it made Japan nervous that they’d lose market share to America? They crushed them. Despite a long waiting list of people who wanted to buy them, they crushed them. Despite the fact that the lease holders wanted to buy their cars at the ends of their leases, they crushed them. Despite the fact that it was a waste of resources to crush running cars in perfect condition, they crushed them.
Let the fuckers fail. Let them starve to death for all I care.
Give the money to Tesla. Or buy the factories and give the factories to Tesla. Let a great American car company get off to a great start with those resources instead of some outdated outmoded idiots clinging to the idea of gas guzzling pieces of shit that need lots of maintenance and spare parts.
Electric motors are clean and efficient and need little maintenance. GM in particular has proven that they refuse to build them. Let them die.
#31.Fusion said: “IF Congress does pass a bailout they are fully able to take away all the toys and put whatever conditions on the package they wish.”
Yes They Can. But based on the 700 Billion bailout (actually over 4 Trillion), and Dem controlled Congress, I wonder, how’s that workin out for ya!
Let the Chinese buy GM and Chrysler like they want. It’s a world market, get over it!