Politics | 12/02/2008 11:35 am
PR Stunt or Lesson Learned? GM, Ford CEOs to Drive Hybrid Cars to Washington to Ask for $25B Bailout

It seems the Big 3 auto CEOs have learned their lesson.
For this week’s trip to Washington to beg for a $25 billion bailout, it’s down with the corporate jets and up with the hybrid cars. Can you say “road trip”?
Ford CEO Alan Mulally will drive the nine hours to the nation’s capital, a Ford spokesman said. His car of choice? A Ford Escape hybrid.
General Motors spokesman Tony Cervone said “it is safe to assume” that company’s CEO, Rick Wagoner, won’t use a company plane, but we’re not sure that means he’s driving. He could just be flying commercial. Or, if you believe this report, Wagoner will drive a Chevrolet Malibu hybrid to Washington. Some of Wagoner’s staff may fly down.
Meanwhile, Chrysler isn’t commenting on the travel plans of its CEO, Robert Nardelli, citing "security" reasons. But we’re pretty sure the corporate jet is out of the question.
During their November 18-19 testimony, Detroit’s auto chiefs were berated by lawmakers for asking taxpayers to foot their industry’s bills, while flying high in expensive planes.
Tuesday is the deadline for Ford, Chrysler and GM to submit a comprehensive plan to Congress on how exactly they would use the $25 billion – or any federal money – loaned to them to keep their businesses afloat. Each company will submit a separate plan. Part of the companies’ plan is to refinance their company’s debt, cut executive pay and seek concessions from workers, among other things.
The kicker to GM’s plan? Wagoner will take a $1-a-year salary. That’s a big pay cut from his 2007 salary of $1.65 million and his 2008 paycheck of $2.2 million. His total compensation has been cut drastically since he took over the company in 2000.
Ford wants a $9 billion loan. In return, it will sell its five corporate jets, and will pay Mulally only $1 a year. He was paid $21 million last year alone. You can see that company’s plan here.
Nardelli of Chrysler told Congress last month he would agree to the idea of a $1 paycheck.
Meanwhile, United Auto Workers leaders have summoned their local union bosses from across the country for an emergency meeting Wednesday in Detroit to discuss what concessions the UAW can make to help the companies get the loans. Those could include a restructuring of the union-administered health-care fund and eliminating the jobs bank, in which laid-off workers keep receiving most of their pay.























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