Viva America!... The case of auto industry

Viva America!... The case of auto industry

Original Text HERE. 

Credibility is a virtue hard to keep, as can be measured from the conduct of the CEOs of USA's Big Three automakers.

November 18, nine days away from Thanksgiving, they flew from Detroit to Washington D.C. to tell the Congress that the auto industry is running out of cash and it needs US$25 billion in taxpayer money to avoid bankruptcy.

Their pleas got drowned as their lifestyle came under spotlight scrutiny.

Talking about jet-setting in style, not even First Class is good enough for the three CEOs -- Rick Wagoner of GM, Alan Mulally of Ford, and Robert Nardelli of Chrysler -- ranked in terms of size of assets and market share. All three flew in corporate jets to DC.

Wagoner flew in GM's US$36 million luxury aircraft, and he boldly told the members of Congress that his company is burning through cash, and US$10-12 billion of the US$25 billion rescue money should go to GM alone.

According to media reports, Wagoner's private jet trip to Washington cost his ailing company an estimated US$20,000 round-trip. In comparison, seats on Northwest Airlines flight 2364 from Detroit to Washington were going online for US$288 coach and US$837 first class.

Number of the Big Three, Ford CEO Mulally, his corporate jet is a perk included for both he and his wife as part of his employment contract along with a US$28 million salary last year. Mulally actually lives in Seattle, not Detroit. So the company jet has to take him home and back on weekends.

Mulaly told the Congree that he had cut expenses, laid-off 51,000 workers in the past three years, and closed 17 plants.

But Ford continues to operate a fleet of eight private jets for its executives.

Kena hammered, GM quickly decided to return two of its leased private jets, something that jettisons the saying, 'wings clipped'.

However, the CEOs have reasons to fly in private jets. It's to "ensure their security for insurance reasons, and to save valuable time" in travels.

US$25 billion rescue? Gaya mesti ada when you're begging for money!