Thursday, November 20, 2008

Begging Detroit Style

With their hats in their hands and with a contrite look upon their faces, the heads of the Big 3 Auto Makers (GM, Ford, and Chrysler) came to Congress to beg for a bailout. Did they travel coach and try to look poorer for their bad business decisions? No. Did they act humble and contrite? Are you kidding? They were as arrogant and demanding as ever.
Some lawmakers lashed out at the CEOs of the Big Three auto companies Wednesday for flying private jets to Washington to request taxpayer bailout money.

"There is a delicious irony in seeing private luxury jets flying into Washington, D.C., and people coming off of them with tin cups in their hand, saying that they're going to be trimming down and streamlining their businesses," Rep. Gary Ackerman, D-New York, told the chief executive officers of Ford, Chrysler and General Motors at a hearing of the House Financial Services Committee.

"It's almost like seeing a guy show up at the soup kitchen in high hat and tuxedo. It kind of makes you a little bit suspicious."

He added, "couldn't you all have downgraded to first class or jet-pooled or something to get here? It would have at least sent a message that you do get it."

Rep. Brad Sherman, D-California, asked the three CEOs to "raise their hand if they flew here commercial. Let the record show, no hands went up. Second, I'm going to ask you to raise your hand if you are planning to sell your jet in place now and fly back commercial. Let the record show, no hands went up."

When contacted by CNN, the three auto companies defended the CEOs' travel as standard procedure.

Like many other major corporations, all three have policies requiring their CEOs to travel in private jets for safety reasons.

"Making a big to-do about this when issues vital to the jobs of millions of Americans are being discussed in Washington is diverting attention away from a critical debate that will determine the future health of the auto industry and the American economy," GM spokesman Tom Wilkinson said in a statement.

Chrysler spokeswoman Lori McTavish said in a statement, "while always being mindful of company costs, all business travel requires the highest standard of safety for all employees."

Ford spokeswoman Kelli Felker pointed to the company's travel policy and did not provide a statement elaborating.

But those statements did little to mollify the critics.

"If it is simply the company's money at stake, then only the shareholders can be upset or feel as it it might be excessive," said Thomas Schatz, president of the watchdog group Citizens Against Government Waste.

But in this case, he said, "it's outrageous."

"They're coming to Washington to beg the taxpayers to help them. It's unseemly to be running around on a $20,000 flight versus a $500 round trip," Schatz added.

The companies did not disclose how much the flights cost.

Full Story
Isn't it funny how many member of Congress fly commercial. There is nothing wrong with the safety of these men and women. Or members of the Armed Forces and other Government Agencies. What about their safety? Should we not care about that?

Should we bailout the auto industry? NO! Between a union that won't give up its concessions and management that is full of waste and poor decisions, it should be allowed to fall on its own. For once, the government has to say to these men NO! You made bad decisions and you must suffer for it. But not at the expense of the US Taxpayer.

1 comment:

Steve Harkonnen said...

NO to bailing out the industry. Quality has long departed the big 3 which is why I buy foreign cars. Been there and done that with Ford and GM; shitty cars, period.

Blame the unions for chasing out quality - the big 3 can no longer claim a quality product thanks to them.

I say let them go bankrupt so they can realize that the BIG problem is coming from within, and that problem is not knowing how to run and manage a successful and profitable business.