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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

 

A guy I work with just told me his father-in-law works for GM. He gets over $50.00 an hour to sit in a glass, air conditioned office and watch cars go by (very slowly) on the assembly line and make sure the front windshield is not cracked. The big problem is the unions are out of control (and their minds) and we have to pay for it. Let them go under so someone can buy them and get rid of the union so we can afford to buy a car again !!!  

I agree pretty much with everyones comments..The government needs to just let these companies go under, period.  I am especially rooting for GM to go under and hopefully it will B.K. and they can restructure and retool and get it right.  All of GM's executives are cigar smoking, brandy drinking, look at what I got, old farts that forgot what made that company great.  How do I know this?  12 years of working for GM would give a pretty good idea, don't ya think..........I saw this coming a year ago and now I work for an import brand.

I NEED A BAILOUT!  i AM BEHIND ON MY HOUSE AND OTHER BILLS.  MY BAILOUT WOULD ONLY BE $3100.00 THAT'S ALL.  WOULD THE GOV. BAIL ME OUT?

If GM goes under L, the parts and servicing of these vehicle will be available for at least 5 years.  No worries though, most people nowadays don't keep their cars for more than 3 years anyways.  

While we are on the subject , quit with the high salaries for the LA trash celebrites, basebalL players, football players ETC. ....NO ONE DESERVES SALARIES LIKE THESE PEOPLE GET....GREEDY SOB'S

PC GM and the others owe big time to underlying businesses. If they use the bailout money to pay them off at least the impac would not be so great (job loss).But at the same time force major changes in the auto industry. The underlying businesses then can use that money to refocus on other industries or shift over to servicing other brands that are not cash strapped. Just a thought on my end.

Uncle Sam turn your back on these three CEO'S big spenders .Let them joint

us they should be in the same boat we are.

I have been in the auto business for 32 years,and after watching the big three beg for relief today, I must say it was unbareble. They like most politicians they could not give a straight answer! Why you ask? Because they don't know the answers. The numbers talk for themselves. How is ten or twelve billion going to help GM when the are going through approx 1.5 to 2 billion per month now. All indications are that the worst is not over yet. I am from rich Alberta and our local GM dealership isin't selling vertually anything. This is a reputable strong dealership that has been around for 30 plus years. If the Big three have a sound business plan that even remotely smells good they certainly did not convey that the at the senate hearings. Deperate people do desperate things. I certainley do not have the answer, but I think there is some writing on the wall. Someone has to loose hear and I hope it's not the blue collar work force that keeps America strong.

Bah Humbug

I agree that ridiculus excess's need to be cut, This is not one. First the CEO of most $billion companys use private jets . Dozens of studies show it's a good spend when you figure in the $$$ cost productive hours lost in aiport facilities ground transportation, confidential meetings that occur during flight etc. Second sure take away all the executive perks and then you better be ready to find a QUALIFIED rplacement and factor in all the lost productity while the get up to speed and then tell them they have to fly commericial....come on get real, this is a very minor expense that goes with the turf for ANY quality CEO

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