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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

 

it's sad, just sad.

Well if you dont do the bailout then fine but remember there will be millions out of work and if you have a business in this economy dont ask why people are not buying anything. Plus i must tell you that if the auto industry goes down when you try to buy a car with 25 or 30 percent unemployment good luck. The banks are not leting people with good credit buy that much and if you have bad credit just dont worry about buying a car or a house. Want to see crime well you will see it and just remember it was the republician and bush adminstration that start this not oboma administration. When you lose your job because people are not buying your products at your job and you finanally lose your job dont be upset be happy. You didnt want the bailout this is the real deal your time is coming can you handle it good luck

what about the 10 million people who work for these companys? if they loose ther job that means more unemployment checks,whos paying for that? use your heads!! give them there money and see what happens. it could get worse if they dont get help.

how can we be so greedy to an american based company that will come back and pay the loan back, and yet waste billions in iraq every month for no return whatsoever,also let forign auto companys come take our money and send it back to japan ((((( What happen to the American People )))))

mandoki,  i agree

Jeepers.  I am inept, poorly educated,and have a distorted view of reality, plus, I love flying.  When GM  seeks a new CEO, I thingk they shoud hire me.  I can put GM in the trash and Ill do it for a measley 5 million and they can keep their jets, they're gas guzzlers anyway .

The big 3 executives do not understand the simplicty of SUPPLY and DEMAND.

But the consumer does. Look how fast the gas prices went down when the

consumer got tired of being ripped off and simply cut back fuel use. Cutting back

on any commodity will bring the price down. Also works on execs.

Oil just didn't go up overnight. The big 3 had plenty of time to adjust the line

up of vehicles to counter the possibility of sky high oil prices.

GM does not need 50+ models of vehicles.

The only way we should bail them out is if they reorganize WITHOUT the union! The unions are killing our country. Sure there was a time for them, but not now! We simply can not afford to pay union wages and dues and still make a profitable product.

Ladies and Gentlemen,

 These poor clueless saps salaries are not what is causing distress in the auto industry.  The fact that they have to spend billions in research and developement to keep up with our give it to me now wants is what has mired the auto industry that and defaulted auto loans.  They used to redesign every 10 years, now were in this 3-4 year cycle and it simply costs too much to retool and rework entire lines of vehicles...not to move beyond that, all of those pensions for hundreds of thousands of workers that have long since retired is probably the biggest money hog.  Pension plans were great but when company continously strives for more and more growth, more and more buildings, lines of cars, factories...and you have a pension plan...what do you think is going to happen when all those people retire...and the people after them retire..and so on and so forth.  Also, twenty years ago, most people wouldn't have even thought about buying foreign products, at least not where I am from...Now people simply don't care and that in part, due to the fact that American businesses recognized that with too good quality came slow buying cycles and started producing parts, then entire vehicles that simply do not last so that people would have to buy more...Cheaper parts and outsourcing had nothing to do with needing to cut costs, it was a plan for people to contiously buy new cars...but with lack of job security anywhere, and prices of cars and everything else skyrocketing, people tried to keep up, but they are simply unable to afford car payments that rival their rental bill.  Put that in your pipe and smoke it.

It's not just the CEO's are that the problem its the unions. I agree we need unions but to pay UAW people the money they do is outrageous too.

If we bailout the big 3 why not bail out Yahoo too and for that matter every Joe the plumber. If you add it up every industry is intertwined. So will the goverment bail out everyone with thier hands out?

If the government keeps bailing out businesses where will it end. I just read that even the maintenace workers who belong to UAW makes over $60K plus a year for sweeping the floor and some senior line workers make over $100K. How can a business go on operating when they pay ridiculous amounts of money like that. I say let them all fail and start from scratch.

I have had 2 Fords in my life and each was a piece of junk. The high end Ford I got (Mustang Cobra) thinking it would be better because it cost so much broke down in lest than 1 year. I brought it to the dealer and got the run around and was finally told it was the battery that was causing the problem. I said it was less than 1 year old so it must be covered by the warranty.... well think again Ford would not cover it and charged me $400 to get everything fixed. Maybe it was the dealership but ever since then I have had nothing but foreign cars. Sorry for going off the subject but I think businesses that do not take care of the customer or shareholders should be left to fall and let new businesses take it's place.

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