On second thought, we’ll fly coach first class
posted at 8:20 pm on November 24, 2008 by Ed Morrissey
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Do you suppose that GM’s public-relations department had a long chat with Rick Wagoner this week? After several days of insisting that huge multinational corporations need to beg for taxpayer dollars while flying private jets, GM finally acknowledged that the optics didn’t quite fit the desperation CEO Wagoner claimed:
General Motors said today that its CEO Rick Wagoner will not be flying on the company’s private jet when he returns to Washington next week for more hearings on the possible $25 billion bailout for the troubled auto industry.
Just last week, after a flurry of criticism following an ABC News report that the CEOs of the big three car companies flew on private jets to seek public funding, GM announced that it would put two out of the five private jets it leases out of service. But even last Friday the company was saying that Wagoner and the other two top executives at GM will continue to fly private for all business and personal travel because of a stipulation by the board of directors.
Today, however, a company spokesperson said, “We’ve gotten the message,” and that Wagoner would not return to Washington on the corporate jet. The decision was first reported by the Detroit News.
What’s truly amazing isn’t that Wagoner got the message, but that it took several days for him to figure out that traveling to DC in a private jet to ask for a taxpayer bailout amounts to panhandling from the rear seat of a Rolls-Royce. What’s even more amazing is that Ford and Chrysler still haven’t gotten the message.
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Hmmm… first class.
Yeah I think we should… let them go under.
upinak on November 24, 2008 at 8:23 PM
What do you expect them to be in?
A Ford, GM or Chrysler vehicle? They’d never be caught dead in such a vehicle!
lorien1973 on November 24, 2008 at 8:24 PM
the world would truly be a better place without the UAW….
SDarchitect on November 24, 2008 at 8:28 PM
I still think this is a non-issue. I’m a lot more disturbed by the travel expenses our congressmen rack up on their junkets than I am by a corporation trying to maximize its executives’ time by keeping them out of the morass that exists in commercial airports these days.
Dee2008 on November 24, 2008 at 8:29 PM
Ford will never get the message, their CEO drives a Lexus.
Bishop on November 24, 2008 at 8:29 PM
Should be a Honda. Then they might learn something about building a quality car.
eea on November 24, 2008 at 8:30 PM
FNC reported that they’re not flying to DC at all, but are car-pooling in a “caravan”.
I hope everyone is happy now.
Buy Danish on November 24, 2008 at 8:30 PM
What message? They will get the money no matter what they do. They could fly a private 747 to Washington and they will still be given the money. Ford and Chrysler know this.
We should let them fail, we should let Citi Group fail, we should let almost all of these companies fail. This is such a bad precedent. What company will even attempt to have a viable business model anymore? As long as its big enough, they know the government will throw OUR money at them.
muyoso on November 24, 2008 at 8:30 PM
@ eea on November 24, 2008 at 8:30 PM
Touche.
American cars are junk. I blame the UAW, bunch of crooks.
muyoso on November 24, 2008 at 8:31 PM
Come on GM Exec…. Have some balls and get on that private jet and go back to Washington. When Nancy Pelosi can fly on her private jet back and forth to San Francisco, why should you apologize? Throw it right back in their face for once. Plus, why are you asking for a bailout? Just file the bankruptcy and screw the UAW. I proudly drive a GMC SUV and love it. I want a bigger one. Enough is enough and we need to stop this madness. Freedom is in choice. Screw the democrats…. Is it 2010 yet? We need to clean house.
suzyk on November 24, 2008 at 8:33 PM
I can, basically, understand the use of private jets for execs for some business travel, but this is beyond extravagance.
As a lifestyle perk and then asking for a bailout – bite me.
tru2tx on November 24, 2008 at 8:35 PM
It was never about the plane, Rick, it was about the ineffectual hack flying in the plane. Resign, and I won’t care how your replacement gets to Washington.
RightOFLeft on November 24, 2008 at 8:39 PM
What message did they get? Don’t look too prosperous when going to a car dealership or when begging for dollars in front of Congress????
To have gotten the real message, Wagoner’s flack would have announced that GM is putting its fleet of corporate jets up for sale in a cost cutting move. The only message that was conveyed today was “you caught us and we’ll be more careful in the future.”
highhopes on November 24, 2008 at 8:43 PM
Now,lets get Pelosi off the plane,
and into a Hugo,or bus!!haha.
When private jetgate was unfolding,it recieved wall to
wall coverage,CoastoCoast AM,CBC Radio,and every other
talk radio were discussing this!
Maybe Liberals should take a hint from this,saving the
planet and all!
canopfor on November 24, 2008 at 8:44 PM
This is funny. I worked for two corporations where the official policy on travel was that all staff fly economy and use the miles towards any upgrade. The only problem was that our CEOs in both firms insisted on 1st class travel whenever they instructed the agents. Then I would have to tell departments that the policy was only for staff and CEOs were exempt.
CEO culture is pretty bad these days. At least in those firms there weren’t unions. Reform does have to start at the top, however.
lexhamfox on November 24, 2008 at 8:46 PM
In the spectrum of Congressional graft, this is what I’m least worried about. A couple of tens of thousands of dollars per Congressjerk is nothing in the grand scheme of things. Hell, we should just pay them all $5,000,000 a year. Seriously. Do you see the piddly amounts of money they sell us out for?!?? We’d probably save considerably money this way.
ErikTheRed on November 24, 2008 at 8:48 PM
Actually, I think that’s an idea that could work well on the PR front. The Big Three corporate CEOs driving to DC in American automobiles with stops along the way in rust belt cities that have the most at stake from a bailout. Make it an event leading up to the arrival in DC to testify before Barney Frank and Christopher Dodd.
highhopes on November 24, 2008 at 8:49 PM
Ummm… what you said!
ErikTheRed on November 24, 2008 at 8:49 PM
But is his wife going to continue to fly in the private jet as described in his employment agreement?
This crap is unfrigginbelieveable.
JeffinOrlando on November 24, 2008 at 8:54 PM
In the military, flag officers travel enough in the performance of their jobs they are almost always able to get upgrades just like everybody else with their kind of travel schedule. The only caveat is they can’t upgrade in to First Class in uniform because of the number of “concerned citizens” who figure out how to call the waste/fraud/abuse hotline when they see somebody in uniform flying in a better than coach seat.
highhopes on November 24, 2008 at 8:54 PM
You don’t drive to the welfare office in a brand new Cadillac. It just looks bad. Most idiots can figure that out.
The problem isn’t that they flew in a private jet to ask for the little people to pony up billions. The problem is that they are so out of touch that they didn’t understand what a sight they made. How are we to expect they understand the crisis they have helped create, when they lack the ability to understand the simplest optics in life?
sharrukin on November 24, 2008 at 8:55 PM
Actually, I think that’s an idea that could work well on the PR front.
Until the suspect vehicle they are riding in breaks down, 100 miles off the assembly line. Not good PR there.
Bishop on November 24, 2008 at 8:57 PM
Yeah, next time land at BWI and drive in!
highhopes on November 24, 2008 at 8:57 PM
Agreed on congressional graft and corruption.
But if these executives are working for me (and if they get bailed out, they will be) I don’t want them wasting their working hours schlepping through airports–or worse yet, driving across country–when I’m paying them top dollar. I want to get them there quick and in shape to get right down to business.
Dee2008 on November 24, 2008 at 8:58 PM
How come the Goracle never got this message?
hamnj7 on November 24, 2008 at 8:59 PM
Bill Gates, on the other hand, flies coach, in the best of times, sips water, and works on his laptop.
I was in the audience when the came in late, from a delayed commercial flight. He explained that he’s a relatively small guy and doesn’t need much space, food, or anything else.
Entelechy on November 24, 2008 at 9:01 PM
These pampered royalists are just fortunate that they are living in the Untied States today rather than in France during the time of the French Revolution.
MB4 on November 24, 2008 at 9:05 PM
Will work for Grey-Poupon?
shick on November 24, 2008 at 9:18 PM
If I have to pay for their stupidity, the only business I want them to get down to is to renegotiate the bloated contract with the UAW. GM was in trouble more than 2 years ago with almost $2 billion in unfunded mandates, largely for retiree’s. Why should my tax dollars go to bail out an organization that becomes an arm of the DNC every election?
In fact, I would rather all 3 go bankrupt. It would serve them right for their stupidity, as well as the UAW. I can walk or ride my horse.
91Veteran on November 24, 2008 at 9:25 PM
I bet he pulls up to the Capitol building in a big ‘ol tricked out H2…
Wyznowski on November 24, 2008 at 9:25 PM
The SNL spot about this was on target, but unfortunately wasn’t funny.
They also need to drag the UAW leaders down there and explain why the rest of us should be fluffing their pillows for them.
pedestrian on November 24, 2008 at 9:35 PM
I was riding my moped to work yesterday when that b*st*rd Rick Wagoner pulled up next to me in his Bentley limo, rolled down his window and asked if I had any Grey Poupon.
I had some, but told him, ‘no’ anyway.
Kevin M on November 24, 2008 at 9:56 PM
On Mark Levin’s show last Friday he disclosed some information on what UAW workers make, and the benefits they get, at these companies…it makes you want to throw up. Here are some highlights.
They pay $10.00/month for an individual and $21.00/month for a family for healthcare. $10.00 A FREAKIN’ MONTH!!!
-Salary for average American worker= $25.36/hr. for wages and benefits.
-Salary and benefits for American worker at a Japanese auto manufacturer= $42-48/hr. or $80k/yr.
-Average UAW worker at Big 3= $71-76/hr. or $130k/yr.
-Healthcare costs for employees and retirees adds an additional $1200.00 to the cost of a Big 3 car vs. an additional $215.00 to the cost of a Japanese car built in the U.S.
-UAW workers get 7 weeks paid vacation, can retire after 30 years with pension and healthcare regardless of age and get paid practically their full salary for not working if the company closes a plant. GM has 3 times the number of retirees than active workers and in 2007 they paid $4 billion for healthcare costs.
Screw the corporate planes. That is a drop in the bucket compared to these union contracts. You can take away the entire salaries of the top executives of these companies and it still wouldn’t make a dent in the company expenses. Before I would agree to a dollar of my tax money going to help these companies I would want to see the CEO’s not just sacrifice but to finally grow a set and stand up to these union thugs. And it’s time these unions and union workers wake up and start to live like the rest of us in the real world.
AZ_Mike on November 24, 2008 at 10:13 PM
Scheeze, make them drive up in at least a 10 year old car from their own factory. Let them experience the piece of junk they tell us is the best quality possible for the price. That’s why I bought foreign this year.
boingo_tx on November 24, 2008 at 10:15 PM
No! No! No!
Make the CEOs drive up in DC in an at least 10-year-old car at the end of a trip that started in California. Since it’s a 3,000 mile drive give them five days to do so but make it into a reality TV event. Payoff is billions in federal dollars. Some of those costs can be recouped in syndication rights.
Far more rational a concept that simply handing over taxpayer dollars, no questions asked and no accountability involved as Allah and others are demanding.
highhopes on November 24, 2008 at 10:36 PM
Sigh, gang it ain’t the corporations, it’s the unions. We are the ones’ that need to grow a set and fight this. Just wait for “Card Check.” Talk about “Gird your Loins.!” Speaking of which and BTW, where IS our asteamed V.P Elect? Joe??? Paging Mr. Joe? Your table is ready sir, if you’d care to pick your Azz off the floor? Your table….oops, so sorry, I forgot to bring the napkin to wipe the drool off your face….
Chewy the Lab on November 24, 2008 at 10:43 PM
General Motors to Invest $1 Billion in Brazil Operations — Money to Come from U.S. Rescue Program
General Motors plans to invest $1 billion in Brazil to avoid the kind of problems the U.S. automaker is facing in its home market, said the beleaguered car maker.
According to the president of GM Brazil-Mercosur, Jaime Ardila, the funding will come from the package of financial aid that the manufacturer will receive from the U.S. government and will be used to “complete the renovation of the line of products up to 2012.”
http://www.laht.com/article.asp?ArticleId=320909&CategoryId=12396
Speechless. Just speechless. So why are the taxpayers bailing these guys out again? Could someone explain that to me real slowly?
sharrukin on November 24, 2008 at 11:08 PM
Ford could start by selling their Mustang collection… which from what I know is worth millions.
Kaptain Amerika on November 24, 2008 at 11:34 PM
I drove Honda’s for about five years until their quality declined, and after that I bought a 1999 Ford Expedition and a 2002 Ford Focus. They were both trouble free, so I got a 2008 Ford F150 and I have had no problems so far.
Johan Klaus on November 25, 2008 at 12:41 AM
highhopes,
We maintain a pretty large fleet of business jets for use by military brass. You think when a congresscritter flies on a “military jet” it’s some kind of cargo plane?
rokemronnie on November 25, 2008 at 1:55 AM
Dee2008,
Don’t bother, their minds are made up. They won’t buy American cars because their dad had a crappy Ford back in 1985. The fact that mom had a crappy Kenmore doesn’t keep them from shopping at Sears. When their iPods break and are too expensive to fix out of warranty, they buy a new one and are thrilled with the bigger hard drive, that it can play videos and comes in cool new stylish colors, while they whine about Detroit and “planned obsolescence”. Go figure.
While the Detroit CEOs are summoned to Capitol Hill, hat in hand, Citigroup gets another $20 billion (on top of their first $20 billion) not as loans like the automakers want but as direct infusions of capital, plus the
gov’ttaxpayers will cover another $300 billion in losses. No CEO hearings, no giving up the business jets and corporate retreats, no mea culpas.People hate Detroit, but I think they’re afraid to hate the banks. It makes no sense to me. Detroit may have sold them poor quality cars 20 years ago, but Wall Street has gutted people’s life savings.
Go figure.
rokemronnie on November 25, 2008 at 2:03 AM
That’s bullshit. GM in Detroit denied that report and said that the money will come from Brazilian operations and local funds. The phrase that GM’s Brazil head allegedly said was not a quote but was in the reporter’s words. I’ve emailed the editor of the LAHT to clarify in light of GM’s denial, since I write for some automotive sites, and he didn’t answer me. I call bullshit.
rokemronnie on November 25, 2008 at 2:06 AM
Because, after all, cars are built the same way today as they were 10 years ago, aren’t they?
Some people.
rokemronnie on November 25, 2008 at 2:09 AM
More bullshit. I’m no fan of the UAW but that’s a red herring. The $70+ figure is the total cost of the contract per active employee per hour. It’s not wages. It includes all the pensions and health benefit costs for retirees.
Instead of being pissed off at the UAW, what about the 1.6 million federal employees (non postal civilian) who average $66,000 in salary plus a benefit package that would make the UAW green with envy. There are about 300,000 federal employees who make more than $77K a year, over 130,000 who make more than $90K a year.
The federal government has transferred almost a trillion dollars from the industrial midwest to the deep south and DC suburbs of VA and MD. Because of all those rich government workers nine of the 20 wealthiest counties in the country are in VA and MD, with Maryland having the highest per capita income in the US.
Michigan has been looted of over $200 billion since 1981. Michigan taxpayers paid for roads and ramps leading to Mercedes and Hyundai plants in Alabama.
But instead, you’d rather rag on my neighbors.
rokemronnie on November 25, 2008 at 2:15 AM
I see alot of ragging on the UAW and it’s retirees..right or wrong the fact is those retirees honored their contract with the big 3 and earned their benefits honestly. The UAW didn’t hijack the Big 3 the contracts were negotiated fairly and did not break the companies in the slightest. Just because the UAW was able to look out for it’s members is no reason to blame them. Unions owe it to there members to get them the best contract they can.
The Big 3 should get their loans. They at least have a track record of repayment. You seriously think the $700 billion bailout will ever be returned. The government already went from buying toxic debt to just forking over cash
Kidd on November 25, 2008 at 3:09 AM
Yeah sure it is. GM denied the report so of course we should believe them. It’s not like they have 25 billion reasons to shade the truth.
Jaime Ardila speaks English, Spanish and German and the Latin American Herald Tribune is an English language paper so its most unlikely to be a mistranslation.
http://www.smartmoney.com/news/ON/?story=ON-20081027-000485-1444
Published October 27, 2008 2:44 PM
Nevertheless, GM plans to invest $1.5 billion in Brazil by 2012. Part of that money has already been spent. Ardila said that GM in Brazil was also talking to the corporate headquarters in the U.S. for another $1 billion. A decision on that isn’t expected until sometime next year.
This is in October and from Rogerio Jelmayer, Dow Jones Newswires, 5511-2847-4541, brazil@dowjones.com
So it seems the $1 billion IS coming from the US.
Of course I am sure it will be a different billion dollars they send to Brazil, not one of the bailout billions! /sarc
sharrukin on November 25, 2008 at 3:35 AM
Nardelli never will get the message. He ran Home Depot into the ground, and was forced to leave by the Board of Directors; but not before he collected a huge golden parachute. He is one very arrogant a$$.
DUTCH Van Atlanta on November 25, 2008 at 6:52 AM
If you’d like to see a very strong argument against the UAW, check out this video:
Listen carefully to the last few comments at the end; which are quite surprising from a Detroit based newspaper.
DUTCH Van Atlanta on November 25, 2008 at 6:56 AM
If Wagoner had shown up for his first Congressional testimony driving a Chevy Volt prototype he might have gotten the money.
ajackson on November 25, 2008 at 7:28 AM
I bet these guys don’t even drive their own cars.
ronsfi on November 25, 2008 at 9:34 AM
Anyone here demanding American autoworkers, or any American worker for that matter, to take a pay cut should be willing to take a pay cut yourself first.
There’s a lot of misinformation being thrown about concerning our autoworkers. Again, if you think some guy or gal on the line is being paid too much and you want to take their paycheck or benefits away, you best be willing to point that finger of scrutiny at yourself and consider whether or not YOU are being paid too much as well.
Demanding that other people be paid less is socialism, folks. Period.
Unless you are willing to take that pay cut first, or lose your benefits first, it would be best to put a sock in that socialist rhetoric.
It’s funny, though. When the Boeing tanker contract was in dispute with Airbus, people were screaming to keep American jobs here to build an American airplane. Yet now we have people screaming that American made cars suck and those American autoworkers are overpaid. And that those foreign cars (Honda, Toyota, Nissan) are so much better.
So which is it, people? You can’t have it both ways.
My kitty says:
Et tu Brute on November 25, 2008 at 10:16 AM
You’re missing the point. While those past contracts and pensions are an issue the problem is with the UAW of the present and their refusal to make any concessions.
For the auto manufacturers to get healthy they need to cut jobs and salaries and that means concessions from the UAW. Since we all know that the unions won’t ever agree to that, the companies should file for bankruptcy, get rid of the union contracts that exist, and restructure.
Face it, organized labor is part of the problem in this equation and there will be no solution as long as unskilled labor is getting upwards of $70/hour in wages and benefits.
highhopes on November 25, 2008 at 10:20 AM
Balderdash! Those unionized auto workers are paid disproportionately high for the work they do and there is no way that you can ever justify over $70/hour in wages and benefits for unskilled labor.
Face it dude, unions are a big part of the problem here. They may have had their time and place in the past but they don’t add anything to the current work environment beyond adding to overhead.
highhopes on November 25, 2008 at 10:25 AM
Arrogance among U.S. Auto Execs is nothing new. In 1979 when Lee Iacocca was to appear before the Senate to beg for a bailout he refused to fly in the Lear jet reserved stating they were too small to be safe. Instead he flew to Washington in a Gulfstream twice as large. The big difference- Republicans controlled the Senate (53-46) ergo – no back-biting or foaming at the mouth about mode of travel.
I don’t personally care how they arrived as the validity of their message is more important to consider.
TedinMich on November 25, 2008 at 11:39 AM
The Rolls Royce analogy though exciting is not apt. Rolls are one of those vehicles if kept, maintained and held will appreciate in value. Now if you had said Cadillac….
Dr. Dog on November 25, 2008 at 12:43 PM
Really? Says who? Says you?
And your expertise on autoworker compensation/labor relations comes from where?
Did you consider for a moment that the foreign manufacturers may be paying their workers too little for the work they do?
Again, I ask: where is your personal expertise coming from in order for you to make that declaration? And, are you willing to take a pay cut yourself should somebody decide you are paid disproportionately high for the work you do?
Actually, dude, you’re the one that needs to face it. Do greedy unions exist? You bet. Do greedy corporate executives exist? Of course. Both are at fault here. Yet neither deserve a bailout from the American taxpayer. They got themselves into this mess, they’ll have to work together to get themselves out.
What you don’t understand is that elimination of unions won’t suddenly solve the problem. The line that unions “may have had their time and place in the past” shows ignorance and a lack of understanding of labor relations. For years many unions and company managers have been able to successfully hammer out CBA’s that left both parties in good shape. In the case of the auto industry however, poor decisions by both management and the union have brought them to this. Again, doing away with the union won’t solve the problem here.
Remember that both parties serve as a check and balance system. In this case, the system failed them both. The Big Three were raking in profit hand over fist on high profit margin SUV’s and other gas-guzzlers. Corporate management saw fit to negotiate contracts with the UAW that paid their workers very well. Everybody, union and management alike, were toasting their success.
Then gas went over $4.00 a gallon. SUV and truck sales dried up. The party was over.
But to place the blame chiefly on the unions and call for their removal is nothing but “balderdash” and scapegoating.
This where you need to face it, highhopes. The Big Three management could have taken some of those big fat profits, used some outside-the-box thinking, and started work on producing cars that were more fuel efficient and used alternative fuel sources, just in case, you know, gasoline should ever go ABOVE $4.00 A GALLON!
But no. It wasn’t until light sweet crude hit $140 per barrel that we saw American auto makers change the tune of their advertising and start highlighting their more “fuel efficient” cars.
Uh, too late guys.
So tell me, highhopes. Was it the UAW that put a gun to the heads of management and told them not to invest in the future with fuel-efficient, hybrid type cars? You know, the cars that Nissan, Toyota, and Honda had the forward thinking to develop and build years ago, just in case a gallon of gas went over $4.00 a gallon?
Et tu Brute on November 25, 2008 at 1:02 PM
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