Come on, is driving to Capitol Hill really necessary? - Top Stocks Blog - MSN Money
 
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Come on, is driving to Capitol Hill really necessary?

Posted Dec 02 2008, 12:37 PM by Kim Peterson
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The head honchos of Ford, Chrysler and GM are headed back to Washington to ask Congress for a bailout, but this time they won't be flying in personal jets.

I can appreciate what my colleague Scott Reeves describes as a massive public relations comeback, but this seems almost as ridiculous. Does Alan Mulally, the CEO of a major multinational company (Ford) really need to drive 10 hours from Detroit to Washington?

What is the productivity loss from having the CEO on a 10-hour road trip? Ford is betting that what is loses in resources, it'll gain in political goodwill. And there's something kind of charming about having Mulally hit the road in a Ford Escape hybrid, except that at the end of the road he's going to beg for taxpayer dollars.

In the end, Mulally is just piling more spectacle on top of an already spectacular dog-and-pony show.  Will the testimony from Detroit's Big Three actually mean anything, or are they just there so the politicians can grab more face time in front of the cameras?

Excuse me for being so cynical. The debate about whether to bail out Detroit is fascinating, and could fundamentally alter a major American industry. There are huge issues at stake, affecting real jobs and real families.

Mulally says he'll work for $1 per year in order to get government loans for Ford. That's the kind of commitment I want to see. All this fuss about CEO transportation is just silly and distracting. 

Comments

 

" All this fuss about CEO transportation is just silly and distracting. " -

I couldn't agree more - but the CEO's aren't the ones that made it front page news - the media did.  Take your lecture to the Other Big 3 - the networks. -

Please...

even while driving, He can make calls and do what ever else he does to sell garbage to consumers. By taking a Private Jet...He saves what 3 or 4 hours. You can't tell me Ford will truly have a measurable loss in "productivity "compared to having him fly. How productive is he really...Let's face it... Year after year American Autos make the top 10 list for vehicles to stay away from...whether you read consumer reports or any other rating site...They have a long way to go before they sell to me.

The "Detroit 3" are asking for a loan amounting to a mere FRACTION of what is being spent on the so-called financial crisis. But you all in the media are grasping at straws for something to write about, so you write trash like this. You're as bad as Congress, publicly tar-and-feathering these CEO's for their mode of transportation when not one question regarding how the big financial institutions are going to use the hundreds of billions of dollars being gifted to them. I don't see demands for business plans, viability studies, payback schedules, or anything of the sort being asked of AIG or the large banks like they are with GM and Ford. Why don't you in the media get off your lazy chairs and go out and ask the tough questions of those who have control of TRILLIONS of our dollars? Evidently, having Ford, Chyrsler, and GM save a few grand is more important...

This is entirely comical.

They'll work for $1 (After bilking my company, my employees and the American people for billions of dollars)...

They'll drive to Washington because my ego proved to be a HUGE PR mistake when I flew in the corporate jet. Which they'll also sell. (Like that was up for discussion)

I feel like I'm watching the South Park movie and Sadam is starting his, "I can change, I can change" routine...

Has there been ANY mention of returning jobs to American soil?

Oh Yeah, ya know what? The longer you can keep them high paid goofs out of the office. The less damage they can do to the companies.

Hey, GM shareholders. I will bankrupt your company for1% of Pout Waggoner's wage.

What? Washington probably will ask them this time to get on theri knees and say"please" then hit us with "VAT"vaule added tax which other contries do to get the public to pay them back. $30,000. pkup-- $3000. VAT- not abad return.

....and when congress wanted to go on a trip to the Galopogis Island...who's jet did they take, and who paid for the entire trip!  Get a grip.  The CEO's of Ford, GM, and Chrysler should not be chilling their "jets" at a public airport trying to catch a flight to DC!  Why doesn't congress fess up and explain why American manufacturer's move overseas....  When a foreign car manufacturer takes up roots in our country, and doesn't have to unionize...or when the foreign manufacturer doesn't have to cover the cost of health insurance (the foreign governments do)..then you understand why it's so hard for the big 3 to show a profit....It's our government that has handed a crooked hand to American Manufacturers.  If you want the playing fields to be equal, then force the foreign manufacturer to play by the same rules forced upon American companies!  And when the economy was going to H ____ in a handbasket, wasn't it congress that was on duty????  And didn't they get a pay raise last year for their efforts, and was that deserved?????  I think NOT.  Who sitting in condemnation of American manufacturer's have the right to criticize private industry!

Not only should congress make the execs personally reimburse GM for the waste that they spent taking private jets.  If the company is looking for a handout, there should not be any waste.  Let them drive like most companies would expect their employees to do.  

Instead of just handing them the cash, someone should be appointed to review any submitted expenses so that there is no more waste going on.  In addition, a complete business plan needs to be submitted before any bailout is approved.  The CEO and other execs need to meet with the appointed business person or congress to ensure that their plan is on track.  The execs need to be held accountable.  This is what goes on in the real world.  

Is there anything they can do and not be ridiculed?

If these CEOs are really trying to show how they can be economical, they should carpool like a good-old fasioned college road trip.  

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