I really don’t want to see the Big-3 go under, but I have to say if they keep running the company the way they do then maybe they should.
Yesterday Executives from the Big-3 went before congress to ask for $25B in loans to keep them afloat. Here they are asking for this enormous amount of money from US the taxpayers…telling congress that GM is burning through cash…AND they had the audacity to fly to this hearing in the Corporate $36m private jets. One congressman asked them…“Couldn’t you downsized to at least First Class?” GM has at least 1 corporate jet. Ford maintains 8 corporate jets.
So instead of cutting their own PERSONAL EXPENSES…they lay off workers…Close plants…
I attended a small college in the late 1950’s and early 1960’s. My senior year, the board of trustees decided that the institution should purchase an automobile for the college president. I didn’t know what kind of vehicle was purchased for the president until I was walking into town and the president stopped and offered me a ride. The car was a stripped down Chevrolet with no sunvisor on the passenger side, no armrests on the doors, etc. and the car was a manual transmission (3 on the column). I made some derogatory remark about the car and the president replied, “Oh, I picked this one out myself”. He went on to say that he had to raise money for the institution and that he felt that the people from whom he was soliciting funds were more apt to give if he showed that the institution was spending money wisely. “How much would you give if I showed up in a Cadillac furnished by the institution?” he asked.
I think the big three executives might learn a lesson from this humble college president.
I once thought the same about Corporate jets until you realize the hourly wage of a major corporate CEO. Due to security restrictions flying on regular commercial flights is an absolute waste of time IMHO when you balance the pay of an exec. It used to be easier/quicker to fly. Flying on a private plane you get quickly to the airport (driven to plane in most cases), have nice facilities to work in flight, and land and are picked up right away. I had the luxury once of taking a corporate private flight(NY->Pease AFB NH) with CEO on board.
I agree. While I certainly don’t want to see any of them go under, the Big Three management attitudes, poor business decisions, and union demands are what did it and the taxpayers should not be putting a band-aid on the problem.
It was reported last night the CEO of FOMOCO made 36 million last year in compensation while closing plants and putting thousands out of work.
If they go under, so be it. Something will arise out of the rubble.
Wonder what these clowns would say if Congress said “Sure, you can have 25 billion. On the condtion that you all resign your posts, return any and all severance packagea and stock options, and agree to never take a job as a CEO again.”.
One can only imagine the stuttering and indignation that would occur then.
#1 Prove to me that they’re working when while they are on that corporate jet.
#2. How about cutting their enormous salaries to something REASONABLE so they can afford to waste 2-3 hours.
#3. It’s NOT just they flying…but also maintaining these jets. The cost of ownership and maintenance is in the MILLIONS. If a jet IS needed…then how about renting one or leasing one.
Sorry…I still don’t buy it.
If I recall correctly, isn’t the CEO of Chrysler the man who almost took Home Depot down before he was pushed out the door with a huge package? Now screaming to save his next package at the taxpayers expense.
If a bailout must happen, Like ok4450 says, everybody out first and maybe without their shirts.
Maybe, if they do give them the bailout, I should ask for one too. I over spent last summer with my granddaughter, does that qualify me?
I agree with Mike yet again. It was also reported that Ford I think it was owns SEVEN of these jets. Guess this is to assure that the CEO has one for each day of the week.
And one could probably safely wager that those jets are equipped with a well-stocked bar and waiters to boot.
It’s nothing more than extremely expensive perks and if a CEO was really frugal then they should have no objection to taking a charter jet flight. A charter jet can he had anytime for probably 500-1000 dollars (dependent on type) an operational hour; and that includes everything including the pilot, the fuel, and maintenance costs.
AMEN, BROTHER!!
That corporate jet thing should be a clear indication that they don’t need taxpayer money. They just need to liquidate some of their extravagent assets.
I just e-mailed both of my senators and my congressman to let them know I want them to vote against any guaranteed loans or bail-out for those clowns.
Agree; these guys are incorrigible. They could have at least “jetpooled” since they all live in Detroit and use the same airport. There was a news item last week about the president of Japan Air Lines voluntariy lowering his salary to $90,000 a year and taking the train to work. He said he did it to share the cutbacks with his fellow emplyees who worship him.
Chrysler Canada just asked the Canadian goverment for $1 billion to tide them over, while the president of the Canadian Auto Workers reacted by saying there would be NO CONCESSIONS form their union, who so far have very made few cutbacks compared toi US workers. Another reason Toyotas are selling so well.
The Wallstreet Journal this morning offered a a government supervised Chapter 11 with a reorganization plan tied to support. That might just work and keep customers from deserting them altogether.
Laying off workers and closing plants has more to do with lack of demand for product than personal expenses. Expenses do affect the bottom line however have nothing to do with the core problem at GM currently, lack of demand vs the capacity they possess to produce.
For Those Of You Aghast At The Audacity Of Free-Enterprise Executives Wasting Profits …
and being belittled by congressmen/women, many of whom have never had a real job, let alone actually “run” a business or anything successfully, how about our current Speaker of The House! Immediately following her installment as Speaker, she demanded and got a full-size airliner as her “private jet,” to be on par with Air Force One. This is your tax money wasted by people telling you how to live.
Our President Elect, the other day, left a location that he was in with his wife. She left in a Biz Jet and he left in a chartered airliner! Security? Convenience? Who cares! These Big Wigs all are cut from the same “Do as I say, Not as I do.” cloth.
Al Gore flies all over in a private jet, wasting fuel and spewing that awful CO2, saving the planet from “Global Warming”, Oops!, Sorry!, “Climate change” (I keep forgetting that we’re in a cooling era part of “Global Warming”, now.).
You have to admire people who are that bold, right?
Chutzpah
[i]If only they were wasting profits![/i]
Detroit’s big three have been experiencing losses, not profits. So the money they are spending on their jetset lifestyles at their company’s expense isn’t coming out of profits. The cost of these jets is adding to losses. That is a big difference.
The last salary figure I saw for the president of Toyota was about $5 milllon. That company now has enough cash in the bank to buy out all three US firms. Toyota managers working in a plant do not even have private offices, just cubicles like Dilbert. They need to be in close touch with the workers and the assembly line operation.
Organizational experts will tell you that an orgnization, no matter how large, needs only 5 levels of management from the worker to the CEO. Examples are Toyota, other Japanese firms, IBM after reorganization, the Catholic Church, the British Empire, etc.
Ford used to have 17 LEVELS of managment, I think now reduced to about 10.
I’ll Tell You What The Big Difference Is!
Losses? Government has no profit or earnings, only losses. The only money at their disposal is money cofiscated from taxpayers! The pot’s calling the kettle black!
In another thread we proposed that GM make further structural cuts by getting rid of Pontiac, Saturn, Hummer, the GMC brand and close one half of its dealerships. Toyota sells almost as many vehicles from 1500 dealerhips as GM from 7500. This is clearly not a sustainable situation. GM also needs to close nearly half of its plants to bring capacity more in line with its 20% market share, which is unlikely to increase.
Ford and Chrysler are in slightly better shape capacity-wise, but are just as fat and bloated as GM in all other ways.
This type of major shakeout ocurred in the US telvision manufacturing industry some years ago. Unfortunately, the US players could not restructure fast enough and the business went to Asia for good. The last US TV I owned was an Emerson 19" portable.
[b]I know the difference between government and private enterprise, thank you.[/b]
Did I say anything about government? My only point was that Detroit’s big three don’t have any profits to waste. I am not going to debate you about politics. That would be a waste of my time.
You are not living up to your user name. You are so emotional right now you are debating things I didn’t say.
I guess you don’t get it either…
I could care less what the company wants to waste their money on…
The fact that they are asking for $25b BEFORE they start cutting their own expenses.
And I do agree with your point about Government waste…So because our government does…it’s OK for these CEO’s to also as we hand them $25B. Good logic.
Al Gore flies all over in a private jet, wasting fuel and spewing that awful CO2, saving the planet from “Global Warming”, Oops!, Sorry!, “Climate change” (I keep forgetting that we’re in a cooling era part of “Global Warming”, now.).
It’s his money…so what…If it was TAXPAYER money then I’d be upset. If GM/Ford/Chryco were making a profit and wasn’t asking for this handout I could care less also.
Aren’t Obama and his wife flying on private money too?..political contributions and revenue from selling all those t-shirts and yard signs? I don’t know for sure.
I don’t think he goes on public money until he takes office.