There was a role-reversal of epic proportions yesterday when Detroit’s Big Three CEO’s were scolded like little boys caught sneaking into a movie theater. Richard Wagoner of General Motors, Robert Nardelli of Chrysler, and Alan Mulally of Ford went begging on the Hill after arriving in their corporate jets. Big mistake and a clear demonstration that these guys just don’t get it.
No matter where you sit on the politcal spectrum, you would have wanted to hug both Rep. Gary Ackerman (D-NY) and Rep. Brad Sherman (D-CA) when they didn’t cut these CEO’s any slack. Both representatives reprimanded the suits in a way that probably had some ex-Detroit middle managers or laid-off line workers cheering in their family rooms.
From the Washington Post
“There’s a delicious irony in seeing private luxury jets flying into Washington, D.C., and people coming off of them with tin cups in their hands,” Rep. Gary L. Ackerman advised the pampered executives at a hearing yesterday. “It’s almost like seeing a guy show up at the soup kitchen in high-hat and tuxedo. . . . I mean, couldn’t you all have downgraded to first class or jet-pooled or something to get here?”
The Big Three said nothing, which prompted Rep. Brad Sherman to rub it in. “I’m going to ask the three executives here to raise their hand if they flew here commercial,” he said. All still at the witness table. “Second,” he continued, “I’m going ask you to raise your hand if you’re planning to sell your jet . . . and fly back commercial.” More stillness. “Let the record show no hands went up,” Sherman grandstanded.
Read the entire article from the Washington Post
Problem is the British car companies tanked because they were nationalized. However, the automakers asking for a bailout are not too far away from this.
As for Bush and privatized social security, he had it right. Think about it, the government has so mismanaged any money coming in that when the baby boomers are collection their SS, their grandchildren are the ones who are going to be paying for it. And after that generation, they may be no money left. Plus, the banks would do a better job by offering interest rates and by managing the money right. Remember, we are in this mess not because the banks wanted to be clowns but because the government forced them since not giving loans to be who can’t afford them was discrimination.
By bassman97. November 27th, 2008 at 9:14 amI’ve worked for the past 33 years in public (major city)transportation maintenance and 10 years of it as a shop steward. As a shop steward I used to resent the abusive employees that only looked up to the union as an organization to defend bad behavior. I dedicated my career to bring both side (labor/management) together to solve problems while boosting efficiency and industrial harmony. I used to argue with my own union president that we need to change our image. I could go on and on but I will say this much; it’s not only the auto maker’s management that need to change their approach but also the UAW union officials.
Has anyone taken a look back at the British empire and how its auto makers colapsed? It sure resemble ours and yes history does repeat itself. Bad management and bad union leaders took a comfortable chair on the “Titanic” full stem ahead ignoring all the warning signs of their industry being in distress.
I’m a pure american automobile loyalist. Can you imagine the most powerful country in the world having to rely on maybe future ennemies to supply us with our cars and spare parts? While in the union, I attended many siminars on industrial efficiency and the japanese team spirit has always amazed me. The lazy, unmotivated, trouble making, selfish employees just don’t make it. Employees work in team groups and maintain certain honorable expectations. If someone falls outside this arrangement then he becomes a burden and a drag on the trust that shapes equality in acheivements and rewards. After the team members make a few attempts to modify the troubled employee’s behavior, not management, but his own team members flush him out. I don’t see a deficit menacing their new found land of opportunity in these bad times.
I’d like to think that I was part of the solution and not the problem in making my place of employment succeed.
The american automobile manufacturing must find a way to survive even though if it means that the government has to interfere. After all, the banking system survived a shameful and abusive conduct with a lot more shame than just arriving in a private jet. And just think, George Bush try to privatize social security by letting most of these clowns manage it.
By Mathieu. November 26th, 2008 at 8:14 pmThe MAJOR problem with the auto industry is the UNIONS… $55 an hour to put screws in, time and a half if it involves thinking (exaggeration I know) but I have a ford trans plant and my neighbor is a non union manager. I hear stories of guys schedueling days off, taking them and then filing a grievance with the union for the supervisor not recognizing a way for the guy to make tripple time on a holiday, then with the way things are rigged the guy getting that in backpay for INTENTIONALLY setting it up.
If you want to save the auto industry (chrysler in paritcular) take back the $30MIL in bonus money then go ask the govt for $20 mil to make up the missing $50Mil its gonna take to save the company.
For the guy who didnt understand the Private jet thing. Take the Jet away and you free up about $1mil a year in jet cost, the fuel surcharge, cleanup and maintenance. AND you can put AT LEAST 30-40 workers back on somewhere for the cost of a $2000 plane ticket round trip and you still employ the pilot, maintenance, and what have you.
By Grape_ape. November 26th, 2008 at 9:18 amwhat difference does it make if its a private jet? they are still paying for upkeep, taxes, fuel , pilot wages, etc all to american business’ and families. they probably put more money back into america taking the private plane
By ramair351. November 24th, 2008 at 3:39 pmI wonder how many congressmen flew to DC from their home state on private or charter jets? Not to mention the charter jets they use on overseas junkets. Talk about the pot calling the kettle black…
By Welder4956. November 23rd, 2008 at 6:39 pmBig mistake yes. Showing up in jets, not willing to take any pay cuts or forced too. C’mon now, don’t tell me the’ve pissed all those millions they’ve made over the years that they can’t rely on savings, or hell, give them a union worker or salaried wage for fun. Bill Ford did not make money a few years ago, voluntarily. I would have driven up, each in their own brand cars, beit a F-150, Challenger and a Corvette along with workers with rallying right up to Washington. Make your presence known. They’d be more willing to give money to the unions who use down and out workers as spokespersons. At least they’ve gotten it and speak the truth from experience. Just a thaught. I just wish someone can pinpoint the cause of such a drop in market share even over the last 10 yrs.
By 64GALAXIE514. November 21st, 2008 at 7:23 amWhat was a little amazing was when asked if they would be willing to give back or give up part of their compensation to help save their companies, Mulally was the only one of the three that DID NOT answer yes. He wanted to spin the question the republican senator asked him even though it was pointed out that he makes well over 28,000,000 a year. Wagner and Nordelli didn’t disclose their pay, but at least they were willing to forfeit it to help their companies.
Another point that was a little upsetting is when the R from Tenn. asked the UAW Rep. a pointed question about union concessions Dod and his democrat cronies would pat the union man on the head and tell him what a wonderful job he was doing raping the companies. Who is in who’s pocket?
Everyone in the country with any economic sense about them knows that the only way the Big 3 can survive is through restructuring. When it cost GM $77 per hour per employ verses $44 at Toyota and Honda.
The Dem. from Delaware was trying to rationalize the big 3’s demise by explaining that the American cars were too reliable and lasted too long. What a crap of ….. .
The big boys don’t have to worry for much longer because as soon as the new elects take over they will get what ever they ask for. After all isn’t that how the pursers got elected.
By retyler. November 20th, 2008 at 1:40 pmTotal bunk!
Just think Pelosi has a jet to take her home every weekend. The drive from Detroit to DC has got to be about 15 hrs. one way. Just what we need ” CEO road trip”. Hey Rick “got to be a Tim Horton’s next exit!!”
By ranchero67. November 20th, 2008 at 1:26 pmIt will be quite interesting to see what these guys do when they return to Capitol Hill in December with their proposal. How about this…
1) Richard Wagoner drives in a 1972 Chevy C/10 with a lawn mower in the back.
By Mikelonis. November 20th, 2008 at 12:54 pm2) Robert Nardelli shows up with his mom’s 1966 Plymouth Valiant
3) Alan Mullaly parks a 1977 Bronco with a propane conversion kit in Pelosi’s parking space.
Yeah but I wonder why no one said anything about this w/ the banks. I bet when they had the hearings for their bailouts they came rolling in w/ their Cessnas too. Plus, this is even more ludicrous listening to the shumuks at Capitol Hill asking these questions when you have people like Nancy Pelosi complaining that she isn’t allowed a 747 but rather a smaller Boeing. And of course, he flights in her Boeing are paid by us. So, before our government says CEOs needs to cut back before they ask for a bailout, maybe members of our own government should put their money where their mouth is and do the same when this country is completely flat-broke.
By bassman97. November 20th, 2008 at 12:39 pmFYI. It’s all aired everyday on C-SPAN. Unedited. I watched yesterday in pure amazement.
By Mikelonis. November 20th, 2008 at 11:58 amDamn, I guess they were pretty much put in their place. I would of loved to be a fly on the wall listening to that.
By Spali32. November 20th, 2008 at 11:52 am