Lawmaker asks auto CEOs to sell private jets
By David Thursday Nov 20, 2008 5:30am
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Auto industry CEOs appeared on Capitol Hill today to ask for a $25 billion bailout. At least one lawmaker believes that the CEOs should change their luxury travel habits before getting access to taxpayer funds. Rep. Brad Sherman (D-CA) asked the top execs if they would be willing sell their corporate jets and travel home on commercial flights.
Sherman asked the CEOs, "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," noted Sherman
MSNBC's Contessa Brewer and Mike Viqueira discussed the CEOs' lack of response. "I have to tell you, just listening to that is awkward," said Brewer.
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The more direct question would have been "Are there ANY personal sacrifices you are willing to make?"
All of the middle class in America has made personal sacrifices at the cost of their greed.
SROOOOOOM
read your MBA textbooks again, jerkoffs. Management's job is to enhance shareholder wealth. You haven't done that...you're FIRED.
The role of government is not to ensure the profitability or viability of individual industries.
Kind of dumb -- corporate jet costs are justifiable. It is not like executive pay, bonus schemes, or other problems endemic to the banks.
Corporate and private are two different things.
but when you have no money...they are not justifiable expenses...they are luxuries.
Let 'em fly coach. I was a director in the treasury department for one of the largest insurance companies in the world.
Any idea what is entailed in owning a private jet...such as crew costs, stocking the plane, storing the plane...and that's only when its on the ground.
You got that right. It's a hole in the ground where the money goes. Sell, baby, sell.
you can't exactly go asking for welfare and then expect to shop for clothes at Nieman Marcus or Saks Fifth Avenue. It's simple. If they have enough money for their bloated jets & paychecks & bonus systems (which I just don't understand...if you've run your company into the ground HOW exactly do you deserve bonuses?), then they should have enough money to run the company; if they don't have enough money to run the company, then they have to cut out luxuries & overspending and set their priorities. If it STILL doesn't work, then come back to the govt & ask for some help, but at least try to help yourself first.
phew. now where is our earmarks?
i want me some of dem earmarks
The Senate acted like first rate bullies, rather than getting to the meat of the problem. Ask the questions they asked the Banking Industry.... Oh they didn't ask any.
This is just the continuation of Reagan's assault upon the middle class. If the auto industry fails the country fails.
They break this union, the assault will be complete. Victory for the Repubs.
It is time the Dems started acting like Dems.
Refusing to bail out the auto industry is all about breaking a strong union. And make no mistake, there are interests that put union busting above anything else.
Look at how far the coal companies went in the not very distant past.
My dad called her a fool if she believed that rightwing shit...his words, lol!
Her gast was officially flabbered.
BushCo outsourced millions of American jobs to China, India and Mexico to bust up Unions... and skirt the EPA.
My understanding is if the automotive industry goes into Chapter 11, they could renegotiate ALL contracts including with Unions and pension accounts.
However, they find themselves in the position because of too high executive compensations, golden parachutes, and selling a product no one wants to buy anymore, the gas guzzler.
Let's be certain all are aware that to allow the auto industry to fail means the Republican Rich Bi - - - -s are finally able to get rid of the Unions which indirectly increases their wealth. That's the bottom line and always has been.
I don't think there's anyway a CEO could answer that question without consulting a lawyer on who owns what, and a good accountant.
And then what about the poor slobs who service the plane, are they just to lose their jobs?
I like being serviced.
I actually saw this on C-Span, and my jaw fell open. First let me say I support an auto industry bailout. Allowing the Big 3 to go bankrupt would have devasting repurcussions for the economy, both regionally and nationally. The ripple effects would be huge. And we're not hearing those questions asked, not like we did when the financial industry needed to be rescued.
Watching the question being posed and seeing the three CEO's sitting on their hand was priceless. They come asking for money, using company jets! Talk about being disconnected from reality!
One of them cited security as the reason for using company jets. Security? Please.
I agree with Avenger that corporate jets can be justified. But using them when you're asking Congress to give you money shows a complete lack of understanding about how it will be perceived. And perceptions mean a whole lot.
What a bunch of arrogant pricks! Security, PLEASE. Like anyone's going to make an attempt on the life of a car company exec. Well, after this... no, joking. = )
What they really mean of course is, no way they're going to fly shoulder-to-shoulder with the rabble. Screw them. Screw them all. To death.
Are you sure, they don't have to worry about their safety?
Didn't General Motors bullied Ralph Nader, they put him under surveillance, with agents following him. they made offensive phones to him at odd hours, and even sent girls to try to get him into bed so they can smear him in public.
These guys know those tactics so they are the first to fear them. That's beside the corporate espionage .
They'll get their damned bailout, with no oversight.
Then they'll get big bonuses.
And go back to making Nimitz class SUVs that get two miles per every soldier killed.
Rinse. Repeat.
I feel the same way. It's scare tactics. Oh, the sky is falling. We heard that back in September... Wall Street needs the $700 billion or we go over the cliff. I don't trust any of these thieves.
Maybe if the CEO's salaries were lower they would have some money.
of the banks we bailed out?
It's not like they were asked to fly home cattle class. Besides, they all came from Detroit, so why didn't they car pool?
You are drinking the Repub KoolAid! Who cares how they got there? By not addressing the problem of union busting and destroying the middle class 30 million people are in the poor house.
You can't seriously think they just talked only about how they got there, do you?
F*** 'em.
Let them fail.
The congressman (D-CA) trying to get brownie points for 2010...solving none of the relevant issues we're concerned with.
Contessa let me explain it to you, the Airlines came out of chapter 11 by dumping their legacy costs onto the american taxpayers.
Wether the Big 3 get their $25 billion or not is irrelevant, they are lobbying Congress in order to dump their legacy responsibilities onto the taxpayers. Big Steel, the Airline industries, and many corporations that have underfunded their obligations with a wave of the magic political wand, have already dumped their obligations on the taxpayer with the help of Congress and the Big 3 will be allowed to get away with it too.
I'm against these bailouts, but in this case I'd have been willing to consider it, given the number of jobs on the line, but seriously, its not like the bailout is going to SAVE the companies. It would just be wasted and the auto companies are going to fail anyway. Hidden by the current economic crisis is the fact that the industry has made HORRIBLE decisions and they show no sign of changing.
And then the govt should step in with their (our) checkbook and help on the condition they go green, with their models and their manufacturing process...for fucks sake, they're dinosaurs...they should be leading the world in innovative ideas and technologies....but NOOOOO...too damn entrenched in their current, obsolete mode.
The only way they try to make more money is to close plants and move them to Mexico. Now they have learned that the Mexican route was not really any cheaper.
Instead of trying to innovate and make a product that does not fall apart and the air conditioner actually blows air (OH, the story I could tell if I had an hour) and the interior lights come on when you turn on the switch. And the government needs to tax the "Nimitz class SUVs" (I had SUV and hated the son of a bitch and dumped it, what a waste and it was fucked to drive too. I have a nice little Toyota where the air conditioning works and lights work and it doesn't rattle) but make the SUVs not worth driving.
Plus I want to ride on one the these guy's jets.
whether I buy one of their POS vehicles or not!
Fucking CEO's....they can suck my taint meat!
They'd probably steal it - then your guts would slide out...
and my balls would sag...even more...
They outsource manufacturing jobs to Mexico at the expense of American jobs, and find it's no cheaper because then they have to pay for the gas for any shipping back into the US, as well as any recalls.
All the CEO's, CFO's should be fucking fired!
The taxpayer doesn't get financial payback. It's a lose/lose situation, excepts for the auto execs who will still get their platinum parachutes.
sure seems strange how when blue collar jobs are at stake, the bailout $$$ gets real tight.
Unless these execs are willing to give up their million dollar salaries and bonuses, there should be no bailout. GM and Chrysler should have had a long range vision instead of managing tactically, day by day, Hummer by Hummer, so to speak. If this industry complains about the cost of health insurance, why didn't they lobby Congress to pass Universal Health Care? It would have been to their benefit. No, they remained silent and now "foreclosure" is rapidly approaching.
I may be wrong. It's either them or an Oil Company (of course).
I think they have a real chance to make a difference for the companies, workers, and the environment. They could receive small portions at specific benchmarks that could revolutionize the auto industry. 1) The gas mileage minimum would HAVE TO meet a 40mpg (or better) estimate. 2) CEO pay could be reduced (by half -- at least). That's all i can think of off hand, but...
American Auto makers have innovated in the past, but there has been no incentive to innovate since they are basically in the pocket of the oil companies.
And speaking of, Why don't the Oil Companies bail them out, they are their biggest fan. Of course, then the provisions would not be followed...
Check out the documentary "Who Killed the Electric Car?"
The Automaker (GM I think) would only lease the electric car and then took them back and destroyed them.
The guy who invented the photoelectric shingle developed a battery that would give the E-Car a range in the neighborhood of 800 miles.
Exxon Mobile bought the patent; suffice it to say that we won't be seeing any of that.
It's all in the documentary.
Never had I been so angry at a corporation...
Yet another reason why I'll NEVER own a GM product!
fuel made from recycled plastic grocery bags..."
Were the congress members bullying? Sure. Was it justified? Damn straight, sSkippy. Every one of these CEOs had a look on his face that said, "Why sell the jet....when you are $25 Billion in the hole, what's another $7 million?"
They just don't get it...when Joe Lugwrench is eating beans instead of hamburger and wondering if he's going to be able to afford to buy christmas presents for the kids next month, YOU MAKE THE @%#*? GESTURE, HOWEVER SYMBOLIC to show that you are feeling the pain too.
Then again, does someone who ran an industry to the point that it needs life support DESERVE to be transported around on a private jet?
Hell to the NO!
this entire scenario is pretty disgusting . . . Why all the almost personal questions in regard to management . . . why was none of these questions asked of the financial guru's receiving bailout monies? .... It boils down to the rich protecting the rich. The auto industry is about working people, so let them sink!
Well they're not getting their hand out. Maybe this little incident was partly why. If they want socialism, it should start from the bottom up not the top down.
I want my fucking tax money back. It mostly gets used to kill foreigners and wipe rich people's dirty asses.
These lawmakers are just a bunch clowns. Let one of them grill the guys abouts the jets fine. But then each of them procede to rail them about it. WHAT A WASTE OF FUCKIN' TIME. Point made MOVE ON!!!! to some constructive talk. What a joke.
I only watched a portion of the House hearing and, of course, saw the "lowlights" on all the news shows. The whole thing was disgusting and embarrassing. The House members were petty and looked like idiots, asking stupid questions about corporate jets - (especially since we know from the past, that many Congress persons have been guilty of having "flown" on corporate jets for junkets, etc.)
None of this really matters anyway. $25-50 billion is not going to stabilize this industry for very long, and they will have to file bankruptcy in the next year.
We as a nation are being robbed, pure and simple, by the corporate/political elitist class. Our nation is bankrupt, and all of the people who have engineered this crime will be flying off in those private jets scot free. Count on it.
Bob Lutz of GM: Global warming is bullshit. Hybrid cars are a hoax and a fad. Yes, he actually said these things in public.
Wonder what the problem is now? Backward looking fools like Lutz who are addicted to the crack of short term shareholder return, run a 1960's model of business (small cars=small profits), and are enabled by weak rubber stamp syncophant boards who don't insist on any meaningful accountability. Their arrogance and lack of foresight are a big part of this problem and in my view, constitute a breach of their fiduciary duty to shareholders. If we give them even .01 of taxpayer money---they need to go. Honda and Toyota already have market ready products that will bury the Chevrolet Volt---which is just a greenwashing stunt on GM's part and is emblematic of their lack of committment to build products the market wants.
Pretty much sums it up, and totally spot on.
That is how the "free market" works.
When we were approving the bailout for the financial corporations? Why weren't those CEOs called to testify, asked to pledge not to use the money for bonuses, asked to sell their jets?
Total bullshit.
I asked the same thing a few posts up!
Totally grilling these SOB's...and as someone else pointed out up-thread...the congress gets tough, when there are blue collar jobs on the line..when it's white collar job...they give them what they want...fuckin bastards!
The correspondent hit the nail on the head by saying 'a time of reckoning is at hand'. I think what it boils down to is the mega-corporations who have been running this country and dictating policy for so many years, see their days in the sun coming to an end. They were allowed go unchecked for too long, and it's backed fired on them. Yes the Auto Industry needs to survive. They are probably one of the last surviving components of our sorry excuse for a manufacturing base. Sacrifices must be made. The People have been sacrificing for far too long, now it's the fat cats turn. Sure help them so they don't go under, but no more bonuses, no private jets and maybe even a big cut in their salaries. Then they won't have to lay off a few thousand workers every few months.
The more I think we should let these companies fail, and give the money to the car companies in America that are actually profitable so they can rehire these employees, unionized. At the very least, they need to be fired and replace these dinosaurs with us kids. The truth isn't hid, from us kids, and we don't even want millions of dollars... We're smarter than you think. Well, some of us... leaders.
I think what we are seeing is the last death grip of the corporate world as a whole. The collapse is eminent. Will it be dangerous and will people die? Yes, but think of all that new found freedom! The era of corporate logos is at end. To think, I go to an art school that has me read Naomi Klien's No Logo, before getting into graphic design courses. It's like, Okay? Was this on purpose, or some clever, scorned teacher, trying to reach out before we got sucked in? I only started going for the fundamentals, because my passion is video games, and it's one of the only industries that only cares about innovation and working together, and creative ideas, and not how much more money the guys at the top make than you. Oh and one of the only you don't need a 80k-in-debt bullshit degree to even get your foot in the door. All you need is the knowledge and portfolio of ideas, and you teach yourself in college anyways :)
And yet, my dad, because he has none, still content to crush my dreams.
Keep those ideas coming and DON'T let the dinosaurs crush your dreams! Change is at hand and the new generation will lead the old!
Let the auto makers fail. Obama just pledged 15 billion dollars per year to build a new electrical infrastructure based on alternative energy.
America needs to be retooled, retrained, and revived! All those laid off workers can be employed to make America a leader in combatting global climate change and the development of alternative energy based on renewable resources instead of coal and oil.
Times are changin' folks.
Leaving aside all other considerations, imagine that you had flown from Detroit to Washington on a private jet. (Let's also leave aside how tone-deaf that is, and how it proves you are a dinosaur.)
If someone said, "Will you sell you jet for whatever you can get for it in the next few hours, and fly back commercial?"
Would you raise your hand?
And I really wanted to save the company...damn right I would.
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