The Big 3 CEOs are trying to turn lemons into lemonade.After being pilloried by members of Congress for flying in separate corporate jets to beg for a $25 billion bailout from the federal government, Rick Wagoner of General Motors Co. (NYSE: GM), Ford Motor Co.'s (NYSE: F) Alan Mulally and Robert Nardelli of Chrysler LLC want to show that they have learned their lesson. They decided to drive eight hours from Detroit to Washington before testifying on Thursday.
Moreover, they are milking their roadtrip for public relations purposes. Wagoner is traveling via Chevrolet Malibu hybrid and Mulally is driving a hybrid Ford Escape. Nardelli has not finalized his plans yet but as BusinessWeek notes "he's not flying a corporate jet. That's for sure." I would be stunned if he does not motor to the nation's capital in a Chrysler hybrid.
This whole exercise is silly, but it has a serious purpose. The negative publicity from the corporate jet story cost the Big 3 critical support for the bailout. Some analysts are suggesting that GM and Chrysler may not be able to wait for the Obama administration to take over next month. Ford can hold on a while longer.
First, the spectacle of overpaid CEOs stopping for lunch at a roadside diner -- the type of place where the waitresses call patrons "hon" -- is an amusing one. I wonder how Wagoner, Mulally and Nardelli will cope with rubbing elbows with the untamed masses who now prefer to buy foreign cars. They best stop for lunch in an area that's not home to any auto plants or else they might have to eat and run.
The drive to Washington also raises another point. If these guys are serious about saving money, they could have at least car pooled. Heck, they could have even flown first class from Detroit to Washington to make their point. A coach ticket could be had for about $250. I doubt they would stoop to taking the bus.
It shows how desperate the companies are that three busy CEOs would be willing to sacrifice 16 hours of their time -- which they cannot afford to loose -- on a public relations gesture.



Reader Comments (Page 1 of 1)
12-02-2008 @ 10:26AM
Chris said...
Does anyone know where all this money is going?! I mean seriously. We had all the upheaval about 700 billion but they are spending 10 times that amount. This article is pretty good about saying where the money has all gone.
http://www.gotoguy.com/?p=589
There is some other stuff that is good as well. I certainly believe this market is going A LOT lower!
12-02-2008 @ 12:12PM
Douglas said...
All the kings horses and all the kings men couldn't put humpty dumpty back together again. A nursery rhyme is fitting for these two groups acting as children.
12-02-2008 @ 12:20PM
The Aggie CEO said...
it would serve them all best to ride in the cheapest hybrid model they had available.........can you imagine what would be said if they showed up in a million dollar prototype???
12-02-2008 @ 12:41PM
john spence said...
Do you actually consider yourself some type of journalist?
This is the most biased piece of shit article of have seen recently. There are plenty of Americans buying American cars.
You apparently have done no research on this, you are espousing crap from other lazy , foreign car loving assholes.
12-02-2008 @ 12:49PM
Shalako said...
Of course Nardelli hasn't finalized his travel plans. His lame management 'style' and arrogance are the kiss of death for any company and he'll likely show up in an obnoxious concept car. How does he survive in business? I thought the free market was more on the Darwinian model of survival of the fittest, not the Special Olympics hugs and bonuses for everyone who can't compete. I'm hoping for an ironic twist to this road trip: one of the CEOs actually drives into a ditch on their way to DC.
12-02-2008 @ 1:01PM
Troy said...
I hope at least one plan is honest. It should show the very near future complete elimination of passenger car gas powered vehicle production and transition to electric. This should costs millions in outdated gas engine producing lost capital equipment and that is what the bailout should pay for. Extreme measures, ASAP
12-02-2008 @ 2:04PM
jpdr1100 said...
Spence, the author is right. Americans buy more imports than they do domestics. So when he writes that Americans "prefer" imports, he is being truthful.
Your anger about the reality doesn't change it.
12-02-2008 @ 2:04PM
jpdr1100 said...
If Detroits plan calls the complete elimination of gasoline engines (as Troy wishes), they are all idiots. At the current $1.50 per gallon for gas, electric cars have no chance. The economics just don't work.
Yes, it's nice to dream, but the laws of economics still have some effect.
12-02-2008 @ 2:26PM
Pat said...
BIG DEAL !
So they will drive to D C...! Shallow minded people who live on symbolism will be very happy. Some in Congress too !
Can you save America by this move? Make no mistake, America is in peril if the manufacturing of Autos dissolves. Sure the Imports , transplants will pick up the slack, but where will their profits be shipped?
Instaed let us get these CEOs to fix the problems for a wider horizon.
1. Make them work for the average white collar salary they pay, same benifits (read no free cars, repairs, gas, country clubs, stocks, dual pensions....).
2. If they say they are confident their "Current Best Team" will pull this off, make them invest at least 50 % of their Net Worth in the Comapny Stock.
3. ALL UNION EMPLOYEES get 25 % of their pay in Company stock.
4. Those who refuse the above and quit or get fired forfiet all future benefits and pensions.
5. The US Govt. appoint an oversight board made up of other proven talent (Welch, Buffet...) and some of the retireees ...while watching and justifying every expense they MUST concentrate on HOW these guys and their mangers function. First misstep get a warning, second and you are out. This because MOST of them promote people who are not capable, but have polished the Boss' Apples very efficiently !
12-02-2008 @ 7:04PM
dgolfer said...
General Motors,Ford Motor and Chrysler sold 8.5 million vehicles in the United States last year and millions more around the world. GM outsoldToyota by about 1.2million vehicles in the U.S. last year and holds a U.S. lead over Toyota of about 560,000 so far this year. Globally, GM remained the world's largest automaker in 2007, selling 9,369,524 vehicles worldwide - about 3000 more than Toyota. Ford outsold Honda by about 850,000 and Nissan by more than 1.3 million vehicles in the U.S. last year. Chrysler sold more vehicles here than Nissan and Hyundai combined in 2007 and so far this year
12-03-2008 @ 12:57AM
frank said...
It would be funny if one of them were to break down on the road and showed up late or not show up at all.It would show the quality of american cars
12-03-2008 @ 11:42PM
Neil said...
To: ALL AMERICAN'S
It is inportant for each of us to contact our Congressmen & women TODAY and tell them -
DO NOT US OUR TAX DOLLARS TO BAIL OUT AMERICAN CAR MAKERS!!
They need to go reorganize like any other busineses.
They MUST CUT THE OUTRAGIOUS WHITE COLLAR & UNION WAGES!!!
UNIONS ARE DESTROYING AMERICA" ability to compete in the golbal markets!!!
IT IS NOW OR NEVER - AMERICA
12-05-2008 @ 6:18PM
Wolfman said...
To Ron Gettlfinger, UAW President
I was a UAW Union Local # 887 member for over 40 years. As a
machinist I had to pay Union Dues to the UAW in order to hold my Job
which I and many of my co-workers feel is wrong. We the Local # 887
members always felt we were step children UAW members as we never
received fair treatment under the International UAW which is mainly
concerned about the automobile workers and not the rest of us. This
gross injustice in the UAW has caused me a lot of pain as deep down
in my heart I am a Union person and came from a Teamster Union
Family. As you know our Country is in Bad shape due to the Greedy
Corporate CEOs, Wall Street Crooks, Self Centered Politicians,
Corrupt Union Officials, Bush War, and a host of other problems.
Thank You, The Wolfman
12-06-2008 @ 1:44PM
Jim said...
America and the Big 3 have seen the handwriting on the wall since the Carter years and the oil embargos. They ahve continued to build non- fuel efficient vehicles (a Hummer getting 9 mpg, Ford Excursion getting 9 mpg etc.). If I ran a business they way thes jamokes have and went anywhere for a loan, bail out, hand out, I would be laughed out if the lenders offfice. To have millionaires come to DC for a handout with no concrete plan is at best laughable, they know NOTHING about sacrifice and never will until they have to declare bankruptcy and start anew. Does anyone really believe they will pay it back by 2012? If you do then I've got 5000 acres of swamp land in Florida I'd like to seel you. Yes we are the land of plenty - plenty of greed and I'm afraind we've turned to corner of no return.Thank you global trade, NAFTA and al those other non beneficial trade agreements that do absolutely nothing for America except lose jobs.