Author Topic: Begging for Bailout while Travelling in Style  (Read 1491 times)

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Offline dmastous

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Begging for Bailout while Travelling in Style
« on: November 19, 2008, 06:39:03 PM »
If this doesn't get your blood boiling I don't know what will.

Quote
Begging for Bailout while Travelling in Style

Published on November 19th, 2008
Posted by McCullough in economy

ABC News- 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. 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

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Offline OSU Buckeye

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Re: Begging for Bailout while Travelling in Style
« Reply #1 on: November 20, 2008, 11:26:09 AM »
I read the 1st sentence and couldn't read any more!   ..-)

Offline dmastous

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Re: Begging for Bailout while Travelling in Style
« Reply #2 on: November 20, 2008, 05:37:11 PM »
I read the 1st sentence and couldn't read any more!   ..-)

What, my sentence, or the first sentence of the article?
All I can say is these (ultra rich) guys had better be careful. Conspicuous consumption is one thing. But begging for a bail out of the company you have just run into the ground with poor planing and bad decisions, is one thing. But in the process of doing so, spending thousands of company dollars on corprate jets, and first class hotel accommodations, which will eventually have to be paid for by those poor middle class masses your company is screwing on a daily basis with cars that break down, and loans that are all win-win for your company and loose-loose for the customer. All this after laying off tens of thousands of those poor would be consumers shows these guys have no clue. They are so far into themselves they can't see that doing things like this in this economic climate is going to create anger and even riots.
This isn't quite at the level of the people of the Philippines ousting the Marcos government and, when they got into the Marcos mansion they found tens of thousands of shoes bought by Imelda Marcos, most probably worn once and forgotten, many never worn at all, while not thousands, but millions of the Filipinos starved and went without clothes and shoes or a roof over their heads.
It's not at that level, but it's getting there.
« Last Edit: November 20, 2008, 05:38:09 PM by dmastous »

Is a tree as a rocking horse
An ambition fulfilled
And is the sawdust jealous?
I worry about these things .

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Offline Tennis4you

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Re: Begging for Bailout while Travelling in Style
« Reply #3 on: November 20, 2008, 06:06:28 PM »
I think the government should bail them out and then monitor every dollar and tell them where they can and where they cannot spend the money.  Although the government might make it worse.
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Offline dmastous

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Re: Begging for Bailout while Travelling in Style
« Reply #4 on: November 20, 2008, 06:25:50 PM »
I think the government should bail them out and then monitor every dollar and tell them where they can and where they cannot spend the money.  Although the government might make it worse.

I think this is the point.
Ford and GM have fallen on hard times, why? Because they failed to see gas prices rising day after day, and continued to try and get us to buy SUVs and trucks. In the 70's the OPEC oil manipulation caught Ford and GM by the short hairs, and gave the Datsuns and Toyotas and Hondas a foothold in the American markets. Since then Toyota has become the #1 automaker in the world. They have continued to flurish during the same period that Ford and GM have floundered. They have become more efficient, and they have made their cars more efficient, while Ford and GM stopped focusing on their fuel effiecient models, and focused on SUVs and gas guzzlers. Is fool me once fool shame on you fool me twice shame on me. They have zero leg to stand on.
I say if the bailout is performed it is solely to save those who are on pensions, and maintain employment. But it will be done only if there are wholesale changes in the management of both companies. The pay and perks need to be examined and lessened. The fat cats who have run the companies to the ground while fattening their wallets, should be held accountable and made to forfiet some of their salary over the past few years, as a part of any bailout.
But I don't think this or any bailout should happen. Instead of giving the money to failed companies who are blind to the current reality (and continue to show they just don't get it), they should give it to companies like Tesla so they can make affordable electric cars (if they give to anybody at all). Companies that have shown initiative and intelligence rather than companies that have destroyed themselves. That is throwing good money after bad.

Is a tree as a rocking horse
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And is the sawdust jealous?
I worry about these things .

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Offline monstertruck

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Re: Begging for Bailout while Travelling in Style
« Reply #5 on: November 20, 2008, 08:36:44 PM »
I think the government should bail them out and then monitor every dollar and tell them where they can and where they cannot spend the money.  Although the government might make it worse.
Please tell me you're kidding?

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Offline Dallas

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Re: Begging for Bailout while Travelling in Style
« Reply #6 on: November 21, 2008, 03:43:59 PM »
I think the government should bail them out and then monitor every dollar and tell them where they can and where they cannot spend the money.  Although the government might make it worse.

I think this is the point.
Ford and GM have fallen on hard times, why? Because they failed to see gas prices rising day after day, and continued to try and get us to buy SUVs and trucks. In the 70's the OPEC oil manipulation caught Ford and GM by the short hairs, and gave the Datsuns and Toyotas and Hondas a foothold in the American markets. Since then Toyota has become the #1 automaker in the world. They have continued to flurish during the same period that Ford and GM have floundered. They have become more efficient, and they have made their cars more efficient, while Ford and GM stopped focusing on their fuel effiecient models, and focused on SUVs and gas guzzlers. Is fool me once fool shame on you fool me twice shame on me. They have zero leg to stand on.
I say if the bailout is performed it is solely to save those who are on pensions, and maintain employment. But it will be done only if there are wholesale changes in the management of both companies. The pay and perks need to be examined and lessened. The fat cats who have run the companies to the ground while fattening their wallets, should be held accountable and made to forfiet some of their salary over the past few years, as a part of any bailout.
But I don't think this or any bailout should happen. Instead of giving the money to failed companies who are blind to the current reality (and continue to show they just don't get it), they should give it to companies like Tesla so they can make affordable electric cars (if they give to anybody at all). Companies that have shown initiative and intelligence rather than companies that have destroyed themselves. That is throwing good money after bad.

 ://

Offline dmastous

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Re: Begging for Bailout while Travelling in Style
« Reply #7 on: November 24, 2008, 03:41:14 PM »
Apparently GM & Ford have heard the outcry over their plush travelling, and will change their ways.

Quote
Auto industry planning car pool to Washington

In wake of outcry over automakers' corporate jets, industry considers car pool to Washington

DETROIT (AP) -- After being skewered by Congress and lampooned on NBC's "Saturday Night Live," the CEOs of Detroit's three automakers may end up making their return trip to Washington by car as they seek a federal bailout.
The Detroit area's auto industry, whose livelihood depends on the health of Chrysler LLC, Ford Motor Co. and General Motors Corp. spent the weekend e-mailing and discussing how to set up a giant car caravan to seek help from Congress.
What's for certain is GM CEO Rick Wagoner won't be going to Washington by corporate jet, although the company's policy is not to comment on executive travel plans for security reasons, said spokesman Tony Cervone. A Chrysler spokeswoman wouldn't comment on CEO Bob Nardelli's travel plans, and a Ford spokesman said no decision has been made on how CEO Alan Mulally will go if summoned to Washington.
The carpool idea came out of meetings on Friday at Dura Automotive Systems Inc., an auto parts maker in suburban Rochester Hills. President and CEO Tim Leuliette said that during the weekend they contacted the automakers, suppliers, dealership groups and the United Auto Workers and the movement began building.
"The proper people are talking to the proper people, and things are getting put together," said Leuliette. "This really picked up momentum over the weekend."

etc ad nausium.....

These guys just don't get it. Let me see if I can set them straight.....

It's about money!

Now they are going to get a bunch of cars and DRIVE back to Detroit. Is this an efficient use of resources? Are they going to save money leasing or buying cars, perhaps from dealerships, and driving them back? It's probably a day or two drive. Hotels, gas. The time away from the job...
Guys, just get a coach ticket from Priceline and live like the rest of us live. That will go a long way toward repairing your image. Go coach, and keep going coach until your company is solvent. Sell the cooperate jets. Rough it. Why is that so difficult to understand?

Is a tree as a rocking horse
An ambition fulfilled
And is the sawdust jealous?
I worry about these things .

Kevin Godley & Lol Crème (I Pity Inanimate Objects)