AutoMOAB Day 3…
Yes, those near bankrupt auto maker’s CEO’s are still in Washington begging for money.
I know what you’re thinking. You’re thinking, “How could these poor corporations possible afford to send these CEO’s to The Hill to testify when they don’t have a pot to piss in?”
Why they plop their big fat butts in Private Jets of course!!!!!
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.
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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.
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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.
The cost of each round trip from Detroit to Washington is $20,000.00. The cost of a coach ticket on NWA is $288.00. First class is $837.00 on NWA.
It sounds like the auto execs and the brass at MPS think along the same lines when it comes to reducing expenses to save money.
Chris from Racine said,
November 20, 2008 @ 9:31 am
It is amazing that these people have absolutely no clue. They wouldn’t know how to work within a budget if their lives depended on it. Golden parachutes, private jets…do they not see the irony of flying a private jet to go beg for my money? Sadly, they don’t.
Jason said,
November 20, 2008 @ 1:31 pm
How much time is lost by the GM representatives when they have to check in for a flight two hours early, or when the GM representatives are not to talk about business during the flight due to insider trading concerns?
The question is what is lost? When 12 people fly on a private jet it costs about $20,000. When 12 fly commercially to DC it costs about $12,000. Is a $8,000 savings worth the time lost?
Isn’t it really worth it in the long run?
http://nomedals.blogspot.com
Julie said,
November 20, 2008 @ 5:28 pm
OK..BUT…having been in the aviation business for 19 years, and my husband flies a corporate jet….IF these DUDES are making 25MIL a year…..the corporations look at “what is their time worth”. True…I know this from experience. Should someone making that kind of money be sitting at an airport waiting for a flight that may be delayed? Also, many corporations fly into small airports where there is no commercial service. Such as…a small town that may have a foundry that makes parts for the company…a private jet can land at the small town airport (usually), executives can get their work done and go home on their schedule…a commercial flight is at least an hour away sometimes more..that’s many hours in a car besides the time at the airport. That’s how they justify the airplanes. Now..I personally don’t think it should be a perk and shouldn’t be used for family either! I’m not saying it’s right or wrong, before you blast me, but corporations that do have private jets…& MOST do, are doing it for a cost savings on what they PAY those suits!