[AnnonUSA]

Big Three CEOs Flew Private Jets to Plead for Public Funds

Auto Industry Close to Bankruptcy But They Get Pricey Perk

By BRIAN ROSS and JOSEPH RHEE

November 19, 2008—

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.


Plants Closed, Company Jets Stay

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.

Private jet travel is perhaps the greatest perk of all for CEOs, who say it allows them to travel more efficiently and safely, even in a recession.

AIG, despite the $150 billion bailout, still operates a fleet of corporate jets. The company says it has put two out of its seven jets up for sale and is reviewing the use of others. Though there are no such plans by GM or Ford.

"It appears that the senior management of the automakers simply don't get it," said Schatz.


Copyright © 2008 ABC News Internet Ventures

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They need a bailout...LOL The Government seems to be a dumb as they believe "We the People" to be.

[TheDriver]

Let them die. They make piece of shit cars anyway. New companies will emerge once the dust settles after the bankruptcies.

[AnnonUSA]

Originally Posted by TheDriver

Let them die. They make piece of shit cars anyway. New companies will emerge once the dust settles after the bankruptcies.

I semi agree...

While a lot of people will be let go, a Chapter 11 will force the Automakers to actually change their business model.

What it will also do is break the big unions. While I think we can agree that once upon a time unions were good and played a valued part for workers, today the biggest Unions like the UAW use extortion and strikes to achieve objectives that at times hurt companies.

If GM decides to pull benefits from workers, and the UAW calls a strike, GM can just not negotiate them back to work. How long can the Union afford to pay it's members? How long will workers be able to stay out of work without the ability to collect unemployment?

I am not pinning all the Auto Company problems on the UAW and the workers, but their actions are not helping. There are many many things that need to be fixed in the corporate structure of these companies.

For years, Automobile manufacturers have been pouring millions of dollars into lobbying efforts in Washington instead of improving their products.

In addition, This is also another indication of the problems on Wall Street. Stockholders controlling companies in the desperate attempt to "hit" target dividend's and Profit margins irrespective of the economic climate.

Like the banking scandal there is plenty of blame to go around, and this will not be the last industry to have a "corporate collapse" before this recession really gets underway.

Tighten your seat belts, this is gonna be a rough ride.....

PS: I do agree with one thing, even though their "products" have improved a bit, they are crap cars for the most part.

[TheDriver]

I think its going to be a fun December! If you think stocks are low now, you haven't seen shit yet. LOL.

[AnnonUSA]

As of right now!

Symbol Price Change
DJIA7,997.28 -427.47 -5.07%
^NYA5,011.99 -353.67 -6.59%
NASDAQ1,386.42 -96.85 -6.53%
S&P 500806.58 -52.54 -6.12%

[Slutter McGee]

Unions are so full of shit, I saw a John Stossel special that covered the New York Teachers Union. They have so much bullshit and redtape to fire a teacher, that they don't even bother anymore. They just continue to pay the teacher, but pull them out of the class room.

Goddamnit bullshit,

Slutter McGee

[TheBagman]

Originally Posted by AnnonUSA

While a lot of people will be let go, a Chapter 11 will force the Automakers to actually change their business model.

That's the beautiful thing about Chapter 11. The jobs and assets, the factories and such, are still in the market they just get reorganized whether that be through reorganization, liquidation, whatever. The jobs will probably stay in the market, they will probably be paid less. Good. Toyota, after all is said and done with benefits etc, pay their employees $44/hr, GM unionized employees get paid $77/hr.

Chapter 7 is a bit different though, that's full liquidation. GM especially is in danger of that without federal help. But, I think that's great too. Get those assets to someone who can use them, even though a whole bunch of people are gonna be out of work temporarily while capital is reallocated.

Originally Posted by AnnonUSA

What it will also do is break the big unions. While I think we can agree that once upon a time unions were good and played a valued part for workers, today the biggest Unions like the UAW use extortion and strikes to achieve objectives that at times hurt companies.

Toyota and Honda factories are in the southern states, which are generally anti union areas of the country. These companies are doing fine. Unions only serve to hurt the industry and of course the northern states allow that to happen.

Of course, setting up shop in the southern states also have tax advantages as well. These foreign countries aren't retarded. If Michigan copied their tax structure, or even taxed less, and stopped feeding the unions it would have a booming economy.

Originally Posted by AnnonUSA

I am not pinning all the Auto Company problems on the UAW and the workers, but their actions are not helping. There are many many things that need to be fixed in the corporate structure of these companies.

No, you really can't. The other day I saw the CEO of GM on CNBC pleading that they need help and saying something like, "I don't see how restructuring is going to help, we'll just keep doing business as we have." Not exact words, but something to that tune. I say he just lacks imagination.

Originally Posted by AnnonUSA

For years, Automobile manufacturers have been pouring millions of dollars into lobbying efforts in Washington instead of improving their products.

Fuck yes. In my finance class I got into a debate with a kid who was saying "well we bailed them out before and it worked". I looked at him and said, "if it worked why are they coming back to the trough?". He was stupified. No good response. Anyways, being in Michigan, especially so close to Detroit, it's fairly safe to say I'm in the minority when it comes to this debate. Fun and often heated debates though.

[TheBagman]

I just got done driving sixteen hours and am so fucking tired. I hope I am making sense.

[TheBagman]

Henry Ford said on February 11, 1934: "Let them fail; let everybody fail! I made my fortune when I had nothing to start with, by myself and my own ideas. Let other people do the same thing. If I lose everything in the collapse of our financial structure, I will start in at the beginning and build it up again."

This is your life, and you are wasting it one day at a time: Henry Ford on Auto Bailouts

[cooloner]

so youre obviously against inheritances right bag?

[TheBagman]

Originally Posted by cooloner

so youre obviously against inheritances right bag?

That makes no sense.

[cooloner]

sure it does.



so are you?

[TheBagman]

Originally Posted by cooloner

sure it does.

Where you came to the assumption that I am against inheritance from anything I posted here does not make any sense.