On ABC’s Good Morning America this morning, scrappy ABC News’ Chief Investigative Correspondent Brian Ross exposed the gross entitlement mentality of the domestic auto execs, who flew corporate jets to Washington, D.C. yesterday in order to….plead poverty and demand a taxpayer-funded bailout for their grossly mismanaged companies! What hubris. Watch it here!
Here is the transcript:
Big Three CEOs Flew Private Jets to Plead for Public Fund
Auto Industry Close to Bankruptcy But They Get Pricey PerkBy BRIAN ROSS and JOSEPH RHEE
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 one of eight luxury jets in the GM fleet 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.
Filed under: Pork
Your opinion that automakers & their auto worker unions approached Congress with their hands out & a sense of entitlement, is spot on. Based on past performances, there was no reason to expect anything but a group of people demanding money from the same people they have bilked & abused for many years.
The unions are reprehensible. Now, imagine what America would look like “if” unions get Democrats to pass their snake oil legislation denying workers the right of secret ballots in union representation elections!?! Workers across America will be confronted by groups of thugs who will”suggest” each worker sign a “card” asking for a union election. However, the sneaky caveat will be, if more than a certain percentage of workers sign the cards, no election is even required. Union representation becomes automatic. What a scam! Its like Al Gore who wants “cap & trade” carbon emission legislation, so he can do business with all using “force of law” as his marketing tool. All will have to deal with some company that trades carbon, & Al will be in place to make hundreds of millions, if not billions< because all consumers will be required under penalty of law, to do business with companies like those he is already invested in & who have had many in Washington writing the very laws he is championing.
Chapter 11 Bankruptcy would give America the best result. But it would also mean the gravy train would be ended & these union guys, plus incompetent & immoral management would have to finally do the job they should have been doing all along.
Americans would buy hybrids, electric cars, & all the other alternatives, “IF” Detroit made them & made them financially practical. Plus, Detroit must make these vehicles look decent. What Detroit plans to turn out, other than the “Volt” look like stupid boxes even a moron could design. Green does not have to mean ugly. The California based “Tesla” proves this & its all electric! (Its just too expensive since they do not mass produce & it can only seat two!)