General Motors CEO Rick Wagoner and Chrysler CEO Robert Nardelli
The Big 3 automakers are going hat in hand again to Congress for money and today they’re giving Congress the plans lawmakers demanded before they’ll consider whether to bail out the failing manufacturers.
They’re all talking about selling jets, no raises for managers, CEOs working for $1 if they get bailed out and going back to unions for more concessions. They’re pledging to focus on smaller, fuel efficient cars. They’ll all be defending their plans on Capitol Hill on Thursday and Friday.
“I believe there will be an intervention,” House Speaker Nancy Pelosi said a little while ago. Pelosi told reporters she hadn’t yet seen what was in the automakers’ plans, but that “bankruptcy is not an option.” She said either the automakers will give Congress acceptable plans or lawmakers would mandate the kind of changes they want as part of a bailout bill.
Here’s what we know so far about what the plans include.
Ford: Their plan is in and you can read it here. Ford wants a $9 billion “stand-by line of credit,” it says it doesn’t think it will need.
Ford CEO Allan Mullaly says he’d work for $1 a year if Ford takes any bailout money. It’s scrapping bonuses and merit increases for non-union workers. It will go back to the union to get more cuts. It will refinance its debt. It’s selling its corporate jets.
It’s speeding up plans to produce electric vehicles with plans to have them out by 2010. They’ll include the Transit Connect small van and a car the size of the Ford Focus compact. It will invest $14 billion in increasing fuel efficiency of its vehicles.
General Motors:Their written plan isn’t available yet. UPDATE: Here’s what GM has posted on its Web site about its plan. But some details are coming out. First GM wants $12 billion from Congress by March. And it may need another $6 billion in credit it things don’t get better. It will sell its corporate jets. It wil go to union for concessions and will cut jobs. It will renegotiate its debt. CEO Rick Wagoner will work for $1 and get no bonuses.
GM will focus on its “core brands” of Chevrolet, Buick, GMC and Cadillac. It will sell Saab, shrink Pontiac to a niche brand and consider selling or closing Saturn.
GM also plans to cut dealerships in the U.S. from 6,450 to about 4,700. It’s selling its corporate jets.
Chrysler: We haven’t heard anything from this privately-held auto company.
Here’s what industry reporters are writing on this
GM seeks $18 billion, says it needs $4 billion in loans to survive year
Ford, GM pledge to restructure in return for loans
FACTBOX-Details of GM plan submitted to Congress
“They’re all talking about selling jets, no raises for managers, CEOs working for $1 if they get bailed out and going back to unions for more concessions. They’re pledging to focus on smaller, fuel efficient cars. They’ll all be defending their plans on Capitol Hill on Thursday and Friday.”
Yes! Some good ol Lee Iacocca-style common sense.
The whole problem with this is the reality that car dealers are the most skilled liars and cheats on the planet. I wouldn’t believe these people if they told me the sun was up at noon.
It is better to bail out the American auto companies then the worthless foreign owned banks that loaned money to illegals with little to no income.
Right on SpenceOC, “NO” to the bailout.
Let them file for bankruptcy. Restructure and Re-Hire the current employees for hourly wage.
That is the ONLY way out of this mess. Otherwise, they’ll be back at it again in the next few years asking for another handout.
Tehy keep telling the general public that, they stand to “lose” 3 million employees, well they don’t have to. If they file for bankruptucy to get rid of all the union contracts and obligations AND THEN, Restructure and RE-HIRE those same employees, what’s so hard about doing that?
They simply don’t want to, they want a freebie of 25 billion bucks, courtesy of us, the American taxpayers.
Enough is enough, let them go under, the lot of ‘em.
Good day.
And oh one more thing, Ford’s CEO is going to have his annual salary cut to a measly buck, that’s right $1, big deal.
Well, they should ask him, $1 is nothing compared to what he got “behind the scenes” of it all, stock options and other financial maneuvering. Ford made it look like this guy is a typical working stiff, only getting a paycheck. Well, executives get more than a “paycheck”.
And this guy’s other financial yearly “incentives”, is nothing short of millions of dollars per year.
And the funny thing is GM’s CEO will drive a “hybrid” going over there, well, too little too late and like all chief execs, these too get money other than a “paycheck” which is laughable.
NO BAILOUT, this is very UNfair to the taxpayers of this country.
Good day.
SpenceOC that makes no sense at all, dealers are indepedently owned and do nothing but buy cars and parts from the manufacturers and have nothing to do with building the cars. The real core of the problem with the big tree is three little letters SUV. Yep, you wanted them and they gladly rebadged any truck they had with a Cadillac or Lincoln emblem and you bought and bought, now that YOU the consumer have given up on the oversized staion wagon craze they need help. The government glady and without any strings bailed out Wall Street and preserved the fat cats way of life, but now what boils down to good old “Joe Six Pack” as palin called them, everyone wants to give him the finger. We need the car companies in this country, it is a fact of national security, just who do you think built tanks, jeeps, and airplanes during WWII? It certinaily wasnt Citi Group or AIG. If WWII broke out today we could not even make a uniform for a soldier because all of the machiney was bought up by China and shipped over there and same will happen with the tooling in Detroit if we are not careful.
The CEO’s will get a W2 that states their income was $1, but what it wont show is their shares, which will earn them millions. There are plenty of ways to hide money. Hell, some of the bailout money will probably go to the CEO’s so they can live while earning that $1. Don’t bail them out. Let them file BK just like Americans have been doing.
Skipper247 what are oyu talking about? The assembly line workers do get hourly pay, white collar just like all other industies get salaried compensation. I wish every one of you folks screaming “no bailout” would educate yourself to ways of the industry before you start talking out of the wrong orifice. Oh and heres some news for you too, the white collar guy gets pensions and insurance when they retire too along with other goodies not offered to union members. A rotten fish stinks from the head down. Before you cry about union vs non union that German car you are driving around is built by a German union worker.
O.K., they agreed to work for a $1 salary. How much are they expected to make in the form of other compensation. Remember, these are the guys who get multi million dollar bonuses and stock options.
I am hoping that the bailout request is denied. Here is my reasoning. A few weeks’ ago, my inexpensive German car was rear-ended by another driver. While my car was being repaired, I rented a car. The first car I rented was a Chrysler Sebring. I made all attempts to adjust to this clunky automobile. The car bounces around, has an extremely wide turning range, and there is a lot of play in the steering wheel. Due to this automobile’s sensitive nature, I decided to return it to the car rental company and request a replacement.
I then rented a Chrysler PT Cruiser. Although it drove a bit better than the Sebring, it was still very unique. I felt as though I was driving an old truck from the early 70’s. The turning range was also extremely wide and my arms became sore because of the positioning of the steering wheel. While driving these cars, I was fearful that if an accident occurred in front of me, I would not be able to avoid it as a result of the car’s poor mechanical design.
Since driving these two Chrysler automobiles was not a positive experience, I thought I would share it you, my fellow bloggers. Another concern that I now have is that while driving on the freeway in my safe, little German automobile, these Chryslers are near me on the road. As a result, I feel less safe than I previously had while driving.
In lieu of these existing automobile companies receiving such funds, I am certain that there are a few engineers out there who could accept this money and build a new, better company wherein the cars designed will not only be safe, but also fun to drive. Hey, what a concept!!! Just think of the possibilities… I only hope that Congress is considering such options and does not merely provide handouts to these outdated car companies.
Juls