Big Three CEOs Flew Private Jets to Plead for Public Funds

strandinthewind · #1 11-19-2008, 08:43 PM

I mean the gall is frightening. FUKC them. That $60,000 could have saved two lower level jobs and one mid to hight level job. Not to mention selling the fleet would get them at least $200 million per company and save them well over likely $10 million a year per company.

Once again, giving these corps a bailout is not the answer. They will just steal the money as they did here (effectively) -- I say give everyone in the US $100,000 and make it automatically go to payinf off mortgages first and then CC debt. Anything left over gets deposited in the person's checking account. Mortgage crisis and economic stimulus crisis resolved and likely in using a cheaper method than giving the money to the greedy crooks like these a$$e$

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Big Three CEOs Flew Private Jets to Plead for Public Funds

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.

http://abcnews.go.com/Blotter/WallSt...6285739&page=2

GoldDustOrphan · #2 11-19-2008, 08:47 PM

It's time to bring back public executions.

estranged4life · #3 11-19-2008, 09:00 PM

Gee, I sit here wondering how bad my financial situation will be in the coming year (Taxes on life insurance could POSSIBLY kill me - but at least I have a grave saved already next to Deb, and a cool looking headstone too!!!!) and elsewhere some CEO's are living high on the hog, must be fun.

**mylittledemon** · #4 11-19-2008, 09:10 PM

All I can say is ... F*CKING RIDICULOUS. And at the risk of sounding dramatic? I hurt on the inside when I read stuff like this. It is CLEAR that America and it's government is going in the wrong direction. God help us all.

gldstwmn · #5 11-20-2008, 02:35 AM

GM should be allowed to sink. Chrysler and Ford are more progressive companies. With some tweaking, they can still be competitive in the marketplace.
And for God's sake, why couldn't they have flown commerical? Did they actually think no one would call them on this ****?

strandinthewind · #6 11-20-2008, 08:28 AM

Quote:

Originally Posted by gldstwmn

GM should be allowed to sink. Chrysler and Ford are more progressive companies. With some tweaking, they can still be competitive in the marketplace.
And for God's sake, why couldn't they have flown commerical? Did they actually think no one would call them on this ****?

I know - they did not think about it because they are totally out of touch with reality, which is why their companies are failing.

Moreover, I am all for flying on provate aircraft on your own dime. But, to poor mouth for public money when you could have reduced the amount of jobs you cut byu at least half by selling these planes - that is just utter cr*p.

Again, I think they should be allowed to file for Ch. 11 and the courts should protect the pension funds as doing that is a whole lot cheaper than letting likely millions suddenly go jobless as a result of this.

David · #7 11-20-2008, 10:42 AM

I didn't read the article -- to busy reading the rest of the fascinating posts on the Ledge. Did these CEOs pay for these jets themselves or with company funds?

skcin · #8 11-20-2008, 01:13 PM

Quote:

Originally Posted by strandinthewind

I say give everyone in the US $100,000 and make it automatically go to payinf off mortgages first and then CC debt. Anything left over gets deposited in the person's checking account. Mortgage crisis and economic stimulus crisis resolved and likely in using a cheaper method than giving the money to the greedy crooks like these a$$e$

Didn't you once say that it was individual people's faults for taking out mortgages they really couldn't afford?

Have you changed your mind?

BTW - I'm ambivelant about these bailouts. Deep in my heart I think it's bull****, but then I hear about how if they were to go out of business we would have so many people without jobs that it would make the economy even worse. But then I wonder if it's just scare tactics - what they want us (and the gov't) to believe so we go for it.

David · #9 11-20-2008, 01:26 PM

Quote:

Originally Posted by skcin

BTW - I'm ambivelant about these bailouts. Deep in my heart I think it's bull****, but then I hear about how if they were to go out of business we would have so many people without jobs that it would make the economy even worse. But then I wonder if it's just scare tactics - what they want us (and the gov't) to believe so we go for it.

That's the tragic part: It isn't the execs with the six-figure bonuses that will suffer in any way (other than public censure) should these huge industries go belly up. It's the thousands of rank & file workers who live paycheck to paycheck who will be out of work & out of money.

To punish "the industry" is not to punish the execs for rotten business decisions. In a sense, they're immune to punishment. There is no reasonable punishment for clowns who bankrupt industries -- if they obeyed the law. What do you do? Send them home? Give me a six-figure Golden Parachute, & I'll go home, too. Gladly.

But your final question is pertinent: The State sends billions of dollars to the execs, payable to whom or to what, exactly? To GM? To Ford? To So-and-So, CEO c/o Ford? Where is the money deposited, & for what is it used? It's probably just a cash infusion deposited into the corporation's bank accounts, & perhaps used to pay debts or meet payroll. Will it be used to finance R&D? To design better cars? It's all so vague. It's a rotten situation we all find ourselves in.

strandinthewind · #10 11-20-2008, 01:35 PM

Quote:

Originally Posted by skcin

Didn't you once say that it was individual people's faults for taking out mortgages they really couldn't afford?

Have you changed your mind?

No. If I bought a house I knew I could never afford, then yes, I have no one to blame but myself no matter what idiot loaned me the money. Just like if some greedy mortgage company loaned me money any idiot would know I could never pay back, I think that mortage company is resp0nsible for that debt. Moreover, any idiot who bought that debt as an investment should suffer the consequences.

However, those people are only part of the mortgage crisis, which has ballooned to the point that many innocent, well intentioned people are losing their houses. ANd, it is only going to get worse.

The problem here is that the mass numbers who defaulted on their mortgages (innocent and not innocent) have driven the prices of homes down by almost 30% or more in some areas. So, if you lose your job trhough no fault of your own:

1. There is no one to buy your house now even if they could get a mortgage, which odds are they cannot because the banks are hoarding the money the govt. gave them.

2. If you find a buyer in the sea of foreclosed homes, you will be forced to sell at 70% of its current value or less, which likely means you cannot sell it for what you owe if you bought the house in the last ten or so years.

So, your house will become a bad mortgage as well and you are not at fault.

Quote:

Originally Posted by skcin

BTW - I'm ambivelant about these bailouts. Deep in my heart I think it's bull****, but then I hear about how if they were to go out of business we would have so many people without jobs that it would make the economy even worse. But then I wonder if it's just scare tactics - what they want us (and the gov't) to believe so we go for it .

I think the crisis is real because too many people are losing their houses right now. I think that the $700 B bailout could have been a good thing, but it has turned into a boon for the people who drove these companies into the ground. That is why I say if we are going to reward that behavior, then let's instead give the money to the people because everyone (innocent or not) "wins" that way as opposed to the CEO of GM keeping his jet while thousands of his employees are laid off and he begs the taxpayers for more money

As for GM and the lot, they knew for years that the SUV's they hung their hats on were going to implode when gas prices went up. Now, they want us to pay for their mistaken judgment while simultaneously keeping their benefits.

strandinthewind · #11 11-20-2008, 01:37 PM

Quote:

Originally Posted by David

. . . But your final question is pertinent: The State sends billions of dollars to the execs, payable to whom or to what, exactly? To GM? To Ford? To So-and-So, CEO c/o Ford? Where is the money deposited, & for what is it used? It's probably just a cash infusion deposited into the corporation's bank accounts, & perhaps used to pay debts or meet payroll. Will it be used to finance R&D? To design better cars? It's all so vague. It's a rotten situation we all find ourselves in.

Exactly.

If the govt. had taken this money and given it to the people with it automatically going to pay off debt with the remainder the personl, this whole crisis could have been averted and people would be spending money right now. Moreover, no pockets would have been lined with the grift.

Edgeof27 · #12 11-22-2008, 08:53 AM

Why don't the Oil Companies bail out the Auto Industry,
(are they not already "strange" bed partners),
the Oil Companies drove up the price, &, then made huge never before seen profits,
this caused people to stop bying new vehicles, leading to the domino effect, &,
here we are with the Big 3 turning to the Feds in both the US, &, Canada for money.

cratesok6 · #13 11-22-2008, 09:23 AM

You know, I heard a news story that some of the NASCAR team owners and/or officials are very concerned about the Big 3's future and how it will affect the future of NASCAR.

I guess it just wouldn't be right to see Jimmy Johnson circling the track in a Honda Civic

RoseGarden · #14 11-22-2008, 10:22 AM

Bottom line it is WE the TAXPAYERS that will bail ALL of this out.

cratesok6 · #15 11-22-2008, 12:13 PM

I'm no economic expert, so I speak in terms of generalities. And I probably sound like a republican (which I'm not) but I just want to get this off my chest, coz my wife won't listen to me

and I have not heard this really being discussed by the pundits:

To me it's just so very wrongly odd to watch all this unfold: huge corporations looking for a handout from the government (so much for true capitalism where market parameters and forces should control their fate); to have the gov't set aside $700 billion to aid in economic recovery, and not a clue how to administer the allocation; the stock market gyrating out of control; total uncertainty in employment in virtually all sectors; etc.; etc

This certainly is a time of unprecedented economic calamity, but, one major factor is being overlooked : consumer spending is the keystone to this economy.

I think, rather than giving multi-billion dollar handouts and strain an already hugely deficit ridden government (aren't we in the red like $10 trillion ??), something we should strongly focus on is the creation of new jobs. New jobs from establishing new markets, new industries. Rather than the gov't funding existing failing businesses and the aholes who run them, why not provide seed money for existing and future companies that can help solve some major problems facing us today: alternative energy; green technology; health care systems; care for the aged; imbalance in trade (if we're not careful China is going to own our a##ses); etc - the main purpose being to put people back to work and put innovation, flexibility, and strength back into our economy! What's the old phrase- necessity is the mother of invention??

This certainly isn't a quick fix, but a step in the right direction IMO.

Just my two cents. Thanks for listening