Big Three CEOs Flew Private Jets to Plead for Public Funds

[tricky]

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
http://abcnews.go.com/Blotter/WallSt...6285739&page=1

---


Chapter Eleven.


period.

[HomoSexualPredator]

ouch.

[PETA]

is there anything that they do right?

the make cars no one buys, pay too much to build them and waste money on absurd extravagences.... fuck 'em

[tricky]

Originally Posted by St. Stalin the Apathetic

is there anything that they do right?

the make cars no one buys, pay too much to build them and waste money on absurd extravagences.... fuck 'em

exactly!

[Deff Gordon]

i don't know about you guys... but if i was going to meet congress at the drop of a hat, i wouldn't chance missing it with flying commercial.

[Deff Gordon]

Originally Posted by St. Stalin the Apathetic

is there anything that they do right?

the make cars no one buys, pay too much to build them and waste money on absurd extravagences.... fuck 'em

General Motors Corp., Ford Motor Co. and Chrysler LLC sold 8.5 million vehicles in the United States last year and millions more around the world. GM outsold Toyota by about 1.2 million vehicles in the United States last year and holds a U.S. lead over Toyota of about 560,000 so far this year. Globally, GM in 2007 remained the world's largest automaker, selling 9,369,524 vehicles worldwide -- about 3,000 more than Toyota.

Ford outsold Honda by about 850,000 and Nissan by more than 1.3 million vehicles in the United States last year.

Chrysler sold more vehicles here than Nissan and Hyundai combined in 2007 and so far this year.

now.. spending way too much to build them.. fuck yea they do!!!

[tricky]

They may sell more cars but that doesn't negate the fact that the majority are shit products.

[PETA]

Originally Posted by Deff Gordon

i don't know about you guys... but if i was going to meet congress at the drop of a hat, i wouldn't chance missing it with flying commercial.

If there was an issue that made time of the essence then yeah I'd see your point but afaik that wasn't the case?

[Deff Gordon]

Originally Posted by St. Stalin the Apathetic

If there was an issue that made time of the essence then yeah I'd see your point but afaik that wasn't the case?

i think anytime you are able to get congress to meet with *you* would mean a lot of things... and certainly wouldn't leave it up to AA to get me and my luggage there in time for one of the biggest meetings of my life. that's a gamble i'd save for the craps table in Vegas.

[Deff Gordon]

Originally Posted by tricky

They may sell more cars but that doesn't negate the fact that the majority are shit products.

actually, they aren't. i have a chevy and actually love the fuck out of it. it's cheap as dirt, runs great, haven't done anything but change the oil in it for the last 2 years. been a wonderful auto. also, they are cheap as shit and easy to fix if anything does go wrong. our mercedes on the other hand is under warranty, but would cost an arm & a leg to fix.

[PETA]

Originally Posted by Deff Gordon

i think anytime you are able to get congress to meet with *you* would mean a lot of things... and certainly wouldn't leave it up to AA to get me and my luggage there in time for one of the biggest meetings of my life. that's a gamble i'd save for the craps table in Vegas.

So then this meeting was scheduled hour 1 and they needed to be there 4 hours later?

Maybe fly up the night before? If its that big of a meeting fly up two days before?

[tricky]

i've had GMC and did nothing but fix it. starting at around 60k miles. Mercedes is known for issues, i was referring to Nissan/Toyota...now THOSE are some damn reliable cars.

[Sinner]

Originally Posted by Deff Gordon

actually, they aren't. i have a chevy and actually love the fuck out of it. it's cheap as dirt, runs great, haven't done anything but change the oil in it for the last 2 years. been a wonderful auto. also, they are cheap as shit and easy to fix if anything does go wrong. our mercedes on the other hand is under warranty, but would cost an arm & a leg to fix.

nothing but oil change in 2 years? how old is it?


and yeah, fuck a mercedes benz or even a bmw... upkeep cost low woh..

[tricky]

FTR, they shoulda taken Amtrak.

[Sinner]

or hot air balloon.