Auto Industry CEOs Get Pricey Perk While Asking For Taxpayer Bailout

They want more taxpayer funds while they fly on private jets. Do the employees and shareholders not care how management continues to waste money?

The automakers have been effectively insolvent for a decade because of the retiree benefit obligations. Vehicle sales are down (particularly high-margin SUVs) and the fixed costs are killing the auto makers. A bailout or loan will not fix the economics of the industry and benefit obligations.


Big Three CEOs Flew Private Jets to Plead for Public Funds
Auto Industry Close to Bankruptcy But They Get Pricey Perk
By BRIAN ROSS and JOSEPH RHEE

November 19, 2008—

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.
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