Auto Execs Fly Corporate Jets to D.C., Tin Cups in Hand

[awkward1]

Originally Posted by LionInMI

Hi, sorry, just want to add a correction, the Chrysler CEO is the one who first said in the hearings that he would cut his salary to $1 -- in fact, he kind of jumped at the idea, he made no mystery of the fact that Chrysler is in the most perilous position of the Big 3 currently. But he is also the guy that just came to Chrysler from Home Depot, where he left with a $200 million pay-out. The GM CEO said he'd consider going down to $1, Alan Mulally at Ford initially said he recognized that it would be a symbolic gesture (but didn't say at the time he'd be willing to do it). Included in Ford's plan submitted today was Mulally's pledge to drop his salary to $1 IF Ford accesses the $9 billion line of credit it's requesting. So he will obviously be motivated to NOT access the line of credit if he wants to keep his salary.

I have tried and failed to find the exact testimony that the CEO's gave on their first trip to capitol hill, but I do know that 2 of the auto execs were not on board with the $1 salary. I just happened to watch this portion of their testimony and was so disgusted by the reply that I turned it off. Yes, the last exec. did say that he was quite comfortable where he was at salary wise. The exec. in the middle said he was fine where he was at but he might consider the $1 salary, only the first exec. to speak volunteered the $1 salary. I wish I knew who was who but it didn't say and this happened to be the only part of the testimony that I actually watched. I'm still searching for it online, if I find I will post it.

[AGDee]

This news article indicates that Nardelli and Wagoner both agreed to the $1 salary.
http://www.clickondetroit.com/automo...23/detail.html

[PM_Mama00]

Originally Posted by AGDee

They have been cutting and cutting and cutting. 400,000 jobs gone in Michigan already. This most recent crisis is due to the banking crisis which hit us in September. They weren't doing that badly until then. Please do your research.

It's pretty sad when banks start laying people off. A friend of my parents, who has been our banker for a few things, just got let go after 35 years with the company.

[AGDee]

Originally Posted by PM_Mama00

It's pretty sad when banks start laying people off. A friend of my parents, who has been our banker for a few things, just got let go after 35 years with the company.

Is the restaurant feeling it? Has business been down yet or has it gotten better since gas prices went down again?

[PM_Mama00]

The restaurant has been feeling it since the summer. It got better in September and now it's just dead, along with every single restaurant in the area.

[madmax]

Originally Posted by AGDee

I got really ticked off when Congress was asking the questions about whether these guys would be willing to work for $1 and why they flew their corporate jets there. Our national debt is escalating at record levels and our Congress aren't working for $1 a year nor or they giving up any of their perks. It's not like the auto makers CEOs are making what the CEOs in the oil industry are making, yet they are similar in size, per the Fortune 500 article I quoted earlier in this thread. The difference? ]

The difference is the oil companies actually make money vs the auto manufacturers that make less than a kid with lemonade stand.

Originally Posted by AGDee

I like this Time article, personally, about the corporate planes. http://www.time.com/time/business/ar...3640-1,00.html
]

The article on corporate jets is weak. The main defense is everyone else does it too. The article left out the fact that Mulally's wife has the use of a jet at her disgression. When Bear Sterns was going down the toilet, Bear's CEO Jimmy Cayne hopped the company jet to a bridge tournament in Detroit. When he got word that the company was losing billions he waited a couple of extra days in Detroit because the private jet was not available and he didn't want to fly commercial.

[awkward1]

I heard a small bit of the UAW representatives testimony today and I must say he did change my mind a bit about the auto unions role in this. I used to think that the union was responsible for limiting the profitability of the auto company's. After listening to the hearings today I changed my mind and I am now more centrist in my feelings towards the union and here is why: When a corporation is having monetary difficulties one of the easiest solutions is to cut employee benefits. It's so easy to cut out the pension, decrease the employers contribution to health care, and eliminate jobs. It is much harder to think outside the box and come up with innovative restructuring and oust the the entrenched group think. After listening to todays hearing I found myself glad that these employees and retirees had an advocate which is in essence forcing the big 3 to get a little more innovative in their thinking. I think that all employees enter into a type of unwritten fiduciary contract with the employer when they are hired. The employee agrees to do a good job in exchange for an agreed upon set of benefits and a well managed business. If the workers fail to do a good job they are fired. When a company is systematically mismanaged, guess what? The line workers and retiree's start to loose their benefits and or jobs. I look to a company like Apple for an example on how to run a company well. Apple integrated the entire process of producing a product so that all departments were involved or have knowledge of what is going on. Designers, engineers, accountants or whatever do not work independently in different departments moving a product from the research dept. to the design dept. to the development dept. My understanding is that at the time this was an innovative approach to management that resulted in ground breaking product designs. This is what I would like to see from the auto execs...don't tell me you need to cut benefits etc. Tell me how different you are going to be from what you are now, how is management going to be radically different? How many layers of management can you eliminate? How many departments can you consolidate? Can your engineers work hand in hand with artists? If you can do this, and you still need more financial cuts, as a last resort pursue benefits.

*stepping off the soapbox now*

[b_estes19]

In reading this, I wonder how ignorant people can be.

The car industry has always been been placid along with the Unions about how many hours they work and what they get paid.

Now, the jobs bank comes out where people got paid to not work. Oh, 85 % of their wages?

So, I just wonder whom is at fault.

[awkward1]

Originally Posted by b_estes19

In reading this, I wonder how ignorant people can be.

The car industry has always been been placid along with the Unions about how many hours they work and what they get paid.

Now, the jobs bank comes out where people got paid to not work. Oh, 85 % of their wages?

So, I just wonder whom is at fault.

Are you referencing my post or this thread in general or the politicians? Who?

[MysticCat]

Originally Posted by b_estes19

In reading this, I wonder how ignorant people can be.

The car industry has always been been placid along with the Unions about how many hours they work and what they get paid.

Now, the jobs bank comes out where people got paid to not work. Oh, 85 % of their wages?

So, I just wonder whom is at fault.

In reading this, I wonder why Tom Earp keeps coming back to Greek Chat.

[preciousjeni]

Originally Posted by awkward1

How many layers of management can you eliminate? How many departments can you consolidate? Can your engineers work hand in hand with artists?

Isn't that job loss though?

[KSig RC]

Originally Posted by MysticCat

I reading this, I wonder why Tom Earp keeps coming back to Greek Chat.

This was EXACTLY my thought.

[SWTXBelle]

[nittanyalum]

My husband and I watched the full replay of the Senate hearings last night and then the full replay of the House hearings tonight. Really, really interesting stuff.

[PM_Mama00]

On the radio this morning they mentioned a bunch of states and how many jobs would be lost if the companies went bankrupt. And that one guy, governor or senator of a southern state (Alabama? the one that is so very against a bailout), that state would lose a couple hundred thousand jobs.