Big Three Cost Cutting Measure #1…
2008 November 19
Canning the GM auto exec’s private jet.
Can they honestly complain of high labor union costs when they are flying a company owned private jet to Washington to beg for public funds?
They can fly first class like all the other peons…
They can probably can their PR staff too for not catching such an obvious flaw in public imagery.
-Marc-
Priceless ! I can’t find it now but I had come across a compensation comparison of execs. Big 3 was up HERE and Toyota was next a fair leap down and down it continued through like 3 other sectors.
In a full disclosure kind of way I drive a Toyota
They should ask the oil companies for a loan
I wish I could afford to fly first class like those luxurious peons that the auto execs are too good to fly with.
Good point
seriously Exxon has had record profits.
I really don’t think that can be said enough.
Exxon has had record profits.
how many dead in Iraq?
Exxon has had record profits.
how much money did we give the banks?
Exxon has had record profits.
how much is this “war” costing us?
Exxon has had record profits.
spread the news . . .glad tidings gas is now considered cheap at $2.25
and Exxon has had record profits.
please decode the following encrypted message
“They can probably can their PR staff too for not catching such an obvious flaw in public imagery.”
Well, it is probably less expensive to send multiple executives on a plane that is already paid for than to pay for the tickets on an airline.
Actually recent evidence indicates they all took their own planes.
@Justin:
the first “can” as in “to be able to”
the second “can” as in “to ditch”, or “get rid of”
Just for the sake of playing devil’s advocate… Let’s say GM is going $30 Million a day into the red. Let’s say that the incremental cost of one flight in a private jet is $30K. Let’s also consider that flying first class, going through security, etc, etc, will tack on an additional 3 hours to the flight. By our earlier definition, GM is losing $1.25 Million an hour. Sure, they’ll save $27K by flying commercial, but they’ll lose $3.75M in lost time. Furthermore, do you really think GM execs can risk confidential information being overheard by other passengers?
Don’t get me wrong, I think the big 3 should go under because they’re blundering giants that can’t build cars people want, and they certainly don’t deserve a bailout. But seriously, people with outsized ego’s deserve outsized toys. Let a poor CEO have his Gulfstream, for crying out loud.
Third section of the STRATFOR excerpt found in this post
With the Big 3 U.S. Automakers circling the drain, here are 10 solutions to the current crisis.
OK… enough with the jealousy. That private jet is a mode of transportation. That one company made and was bought by another. Jobs where made and paid for to make that private jet. It’s called if you have the money, spend the money. The problem is the company borrowed the money to buy that jet. They don’t have the money. Don’t get another loan.. downsize people.
lol @ elijah.
GM should bring back the EV1 as a mandate to any bailout. A 125-mile per charge “cool” electric car they scrapped in 2000 after spending 1Billion perfecting it. Morons.
Their actions speak volumes about why their companies are floundering.
The sad part is all the people under them that relied on their decision making abilities for their own families future.
And while downsizing will certainly occur, the direction of the company will not change because the leadership makes decisions like the ones they made today.
I haven’t a problem with corporate jets to be used when appropriate…when time is of the esssence, critical deals, to woo potential clients and suppliers etc… I’m a marketer and understand these things.
But when your company is asking for 25 billion dollars because you are ostensibly about to go bankrupt, there are zero reasons you can’t fly first class.
Corporate secrets? For that three hours you fly to DC, you say…read a book on corporate management!
Read some books by Edwards Deming, and he predicted this years ago..when he tried to sell his manufacturing ideas to American Manufacturing, including auto makers. Oh, who’s Edwards Deming?
In Japan, the Deming award for manufacturing excellence is THE award any company strives to get… THEY were open to his philosophies years ago…yeah..six sigma, all that….it came from an American…
Mitt Romney sure didn’t spare the rod today in both a New York Times op-ed and on CNN.
The thing that bugs me is his claim he’s a Detroit raised guy but didn’t offer any tangible solutions beyond a few passing generalities.
I don’t want to steal anyone’s thunder, but if you want to read some of Mitt’s comments side by side with a Michigan native’s, check out the post here:
http://tinyurl.com/5rxgm5
“Marie Antoinette rides around in a coach pulled by white horse and a gilted carriage.”
“You are just jealous. She is a princess, what else is she supposed to do walk? Now shut up and eat your gruel.”
and Marie lived happily ever after.
ALL I’VE GOT SAY ABOUT THAT IS.
HAHAHAHAHAHAHAHA.
THEY STOOD OVER BILLIONS OF DOLLARS IN LOSSES WHAT’S ANOTHER 50K? THAT’S WHY AMERICA IS QUICKLY BECOMING A 2ND WORLD POWER.
AND SUSAN ABOVE IS A FISCAL MORON.
SHE SAYS, ‘YOU HAVE THE MONEY YOU SPEND THE MONEY’
WOW. AMERICANS.
My friend and I were talking about this.
A learjet 60 XL business class jet costs $22,000 for 5 flight hours. This comes with a pilot and crew and you don’t have to use all 5 flight hours at a time.
Now the flight from Detroit to washington is not far. Lets say it takes two flight hours at $11,000 for the round trip.
Now lets say each CEO has 3 aides. Works out to under $3000 round trip each.
Now keep in mind thats renting a plane and crew. All these companies own their planes and pilots i’m sure. I assume that would save them some money. Private jet isn’t looking all that much worse than First Class tickets for the CEO and his staff.
Sure this is a sensational headline people love to take hold of…but it really holds no weight.
What should hold weight is the Bob Corker Tennessee Senator who confronted Chrysler CEO about how his company has no other exit plan other than to get bought out and sold for their network of dealerships.
He made some other good points. Cerberus bought an 80% stake in Chrysler essentially for their financing network. The car stuff was just a bonus. Cerberus has 24 Billion in capital, but is unwilling to give Chrysler any money because they want them to be bought out.
You have the primary stake holder of Chrysler who will not give them any cash to survive…they want them to fail and be bought.
Chrysler has stopped R&D. Chrysler does not have any technologies to compete. Chrysler does not want to be a stand alone company. They want to get bought. They need enough money to make sure they can stay afloat to keep their stock prices high enough to get bought at a decent price. Let them fail, price drop and be bought up. The US is a capitalist country right? This is how it’s supposed to work.
For cross-cultural point of view on this issue, check out my most recent post: Can American Executives Manage Without Their Corporate Jets:
http://japaninsight.wordpress.com/
My first time visiting this blog. I’ll check back in.