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GM, Ford execs go begging in private jets

Posted Nov 19 2008, 12:08 PM by Minyanville
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If you're planning to beg Uncle Sam for $25 billion, it might be smart to brush up on your poor-boy act first.

The CEOs of General Motors, Ford and Chrysler overlooked this basic fact when they flew to Washington in private jets to testify before Congress.

Wagoner's trip to Washington in a G4 private jet cost his struggling company an estimated $20,000 roundtrip. A commercial flight booked online would have cost about $576 for coach and $1,674 first class round trip.

Sure, sure a CEO's time is more valuable than gold, but there are cell phones and e-mail to keep in touch with the galley slaves back in Detroit -- and electronic gizmos work on commercial flights and even in airport terminals or taxis.

Ford CEO Alan Mulally's $28 million pay package includes the use of a private jet. He lives in Seattle and the company jet zips him home on weekends, ABC News reports.

You'd think avoiding the "let 'em eat cake" trap would be Public Relations 101. But maybe the auto industry CEOs are so accustomed to their perk-filled nether world that they simply don't understand how a little thing like flying on a private jet to ask for a handout looks to the working stiffs of America.

"We want to continue the vital role we've played for Americans for the past 100 years, but we can't do it alone," GM's CEO Rick Wagoner told the Senate Banking Committee.

Tom Schatz, president of a watchdog group called Citizens Against Government Waste, huffed: "This is a slap in the face of taxpayers. To come to Washington on a corporate jet and asking for a handout is outrageous."

The CEOs at Detroit's (formerly) Big-3 automakers could benefit from a lesson in PR smarts from Goldman Sachs.

Seven top Goldie executives, including CEO Lloyd Blankfein, are giving up their bonuses for 2008. It's a move that's sure to keep the press, members of Congress and other pests off their backs after participating in Uncle Sam's $700 billion bailout plan.

That creates the appearance of shared sacrifice - and here's betting that life goes on if you forgo a private jet and take a commercial flight.

Top Stocks blogging partner Todd Harrison is founder & CEO of Minyanville.com. This post was written by Minyanville Contributor Scott Reeves.

Related reading:

GM: Where's Steve Jobs When You Need Him?

Outside The Box: Five Potential Surprises Into Year-End

Quick Hits: Ford To Offload Mazada Stake

Comments

 

I agree with JK, how about putting that money back in the hands of the tax payers. How is giving these guys 25 BILLION going to tighten their spending. With all the bail out money they are giving away, Why not have an incentive package. Take the 700 BILLION and divide that among all the the tax paying public with a social security number and have been gainfully employeed. No welfare dead beats, do the math! can you imagine giving $5000 to each and every individual out there! Now THAT would kick start the spending!!

Let the oil companies bail out the car manufacturers !!!!!!!!!!!!!!!

Let the top executives forego their huge salaries and perks and get to work!!! Also they better start building RELIABLE cars just like their counterparts in japan.

What has happened to good ole American Ingenuity?? I guess we lost it 30 years ago and we have been  paying for it ever since the gas crisis of the 70's.

For L, it's a choice whether or not you pay to see a movie, hence Mr or Miss movie star earning millions per. Don't see them, their stock goes down, they may have to get a job like you and I!

As for the auto industry, I'd hate to see all the workers laid off, but to break the unions where $71.00 per hour wages, private jets for top execs are rampant, this is a luxery item we can do without. I for one hate paying an higher price for something I don't spend that much time in anyway, then only gets 20mpg.

Yes, I might get along without my truck, but I do use it not just for show or go. I work extra to make ends meet and need it for the tools I need to have.

I dont have a problem with people making money. But sometimes you have to make sacrifices and bring your quality of life down to match your income. Part of the problem also is the goverment not putting a high enough import tax on foreign auto's. Another part is the Unions being too inflexible. Im not saying that unions are bad. Many quaility of life improvements have come about because of unions. But in a business world you need to be felxable to deal with the eb and flow of consumer spending. And lastly you need CEO's that are not idiots. Ford was a great man who built an empire. Too bad he did not teach common sense to his children.....

If you want the economy turned around, then the absolute best solution is to give each family $200,000.  These people will in turn, pay off their debts, housing, credit cards, cars, etc. They would buy Christmas. And undoubtedly, almost all of the money would be soaked back into our economy. You want people to spend? Give the consumer what they need. I work for a automobile supplier and see the ripple effect it is already causing. Workers unsure if they will have a job next week. But we also see bailouts being abused for personal pleasure. And when the Auto industry arrives to beg in Lear Jets, you wonder....why?? Why should we bail them out when all they do is abuse the power. If the bailout is approved, please appoint a staff to oversee all spending and where allocations are needed.

Don't leave it to the CEO's of the companies, or it will be squandered.

The time is just around the corner where all the corporate type big-wigs will be sitting in a stone castle with their hired guns out doing their dirty work!  Mainly letting the poor working man go because there's no money to be made in ........ anymore!

We taught the corporate model to Japan and they fixed it and made it work.  We could learn a lesson from that today.  The Big 3 car makers want to have the whole market, they need to find a portion they can compete in and stay there!  Unfortunately the part we could compete in the Japanese already own!

Wake Up America, it's already to late for our kids and grand-kids!

It's an embarrassing state of affairs when the beggars arrive in royalty. They cannot comprehend what the average individual is struggling thru to survive. Save the automakers yes! The management team that created this disaster no!!!

I say forgive all the past sins of the auto management and unions and fix the problem going forward. Give them their cash, set up a special bankruptcy act with a judge and governing board. Let this governing board consist of people with management experience in the industry, financial people, legal minds, etc and give them power to run the company for 2 years, with the current management ousted.

At t he end of 2 years if the companies are not successful,  reforms and reorganization, cost cutting, etc.have not been accomplished, reorganize the companies under the previously existing bankruptcy laws or let them go out of business. This procedure would be less painful to all conceerned.

THROW THEM ALL IN JAIL,  PRIVATE JET THEM TO PRISON IF NEED BE TOO.

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