Day Two: Automaker CEOs Grilled on Capitol Hill

There is no real comparison between Lee Ioccoca and these guys (except possibly for the one that agreed to work for $1 per year).
I read Lee’s famous book about how Chrysler was saved. The UAW made great concessions; executive perks were eliminated – no private planes; people were laid off; banks were pursuaded by the administration; no limos or chauffers; the list is endless. Lee and his bunch were committed. The difference is that Lee and his people were willing to sacrifice to save Chrysler. These three Presidents are not.

Is it true these gentlemen flew to Washington in their private jets?
I can’t believe Frank throwing out this class warfare junk in the middle of all this…well, on second thought, I can believe it.

They said they would not take huge bonuses this year.So, does that mean they can get them Jan.1-09?

Fire these CEOs and make them walk back to Detroit!

I was seriously considering purchasing a new Chevy or Ford car for my 150 mile round trip daily commute. I have changed my mind. These gluttonous morons don’t deserve my business.

I have had ENOUGH of Congress, Senate and big Corporation taking and messing up tax-payers money!!!!
I say FIRE EVERYONE IN WASHINGTON AND LET WALL STREET FALL!!!
WELCOME THE GREAT DEPRESSION 2!!!!!

I don’t understand what all the hype is about. All they want is part of the 700 billion already slated to be spent. It either goes to Wall St or Detroit…… so what, we’re screwed either way…….

Winning Strategies:
1. Congress takes a SIX WEEK PAID VACATION.
2. Congress returns to Wash. DC for a planned one ( 1 ) week of work.
3. Under a strict time line to start the next Paid Vacation.
4. The three Executives of GM, Ford and Chrysler fly in on 3 luxury private jets.
5. One executive ( who makes 9 million dollars a year ) is ask if he would be willing to cut his salary in return for government financial help arrogantly says ” I am fine with my 9 Million a year, but thanks for asking.”
6. United Autoworkers Union President is ask if his union would be flexible says it is someone Else’s turn to be flexible, the union will demand GM, Ford and Chrysler continue to pay very high wages and benefits while the companies are losing Billions of dollars each week.
7. Big three automakers will not guarantee they will ever be able to pay it back but they beg for $25 Billion for the next “few” months.
8. Big three automakers will not guarantee they will not be back for more in a couple of months.
10. Congress avoids a “Vacation Crisis” by borrowing Billions of Dollars, Guaranteeing the Children and Grand Children of the tax payers will pay it back, and gives these Billions to GM, Ford and Chrysler in return for promises to try to do better in the future – but no Guarantees, we will just try.
11. One week after returning Congress departs on another badly needed 6 Week Paid Vacation. Worn out from their extensive two days of hearings and “difficult” votes. Proud they were able to give away your Children’s future wages and my Children’s money without extensive hearings to find out the best way to save the US Auto Makers.
Everyone agrees this may lead to another Great Depression, yet it APPARENTLY is not important enough for our US Senators and US Congressmen to work more than one ( 1 ) week out of thirteen (13) weeks to fix.
Anyone beside me see anything wrong with this picture

I am so tired of people bitching about not wanting to help the Auto Industry, especially when they don’t have all of the facts. All they are asking for is a damn LOAN, not a give me. It’s not their fault the economy fell apart. Yes, I agree that upper management need to be replaced. I think that needs to be a stipulation in the agreement if there is one.
I don’t think people realize the amount of jobs this will effect around the world and every state in the country. There are roughly a million employees that work directly for the US auto industry. There are millions and millions and millions that work indirectly. The auto companies not only make cars they make engines for boats, planes, heavy equipment and they also produce buses for public transportation, police cars, fire trucks, ambulances, semi truck, etc… There are thousands of parts companies that live off for the industry. They not only make parts for the US auto companies they make them for foreign cars, they make plane parts, tractor parts, space shuttle parts, military vehicle (tanks, trucks, jets) etc…… Glass companies will go out of business. Tire companies will go out of business. The steel industry will go out of business. Some of the computer companies will go out of business because the auto industry uses more computer components than all of the home, business and desk PCs put together. There are thousands of car dealerships nation wide that will go out of business. Also, all of the small businesses in any area that builds the cars or the parts will go out of business because they will have no customer base. All of the national retail and service companies that are teetering already due to our economy will go out of business. If all of those people are out of work and all of the businesses go under the TV industry will no longer have jobs because when there are no businesses to advertise that business goes under too. This is a total at minimum of 23,000,000 jobs right away. It will effect the entire country because these businesses are located in all 50 states. Bankruptcy is not an option because no one will buy a car from them in the 3 years it will take to go through bankruptcy hearings and reorganization. Would you buy something from a company that was in bankruptcy and you may need parts or repairs at some point? By then all of the parts companies will be under.
This is not just a self interest opinion. These are all facts and the truth. I beg you to write to your senators and representative right away.
I don’t want to hear anyone say anything about the union taking more concessions either. They just made an agreement that starts in January. Pay will go from $28 per hour to $14 per hour. Our health care benefits have been cut in half. I pay 50% of my doctors office calls now. We have to mail order all of our prescriptions because if we don’t they aren’t covered by insurance. They took cuts on their retirement pay too. What do people want? Do you want us to work for minimum wage? If we do that we might as well live on welfare.

BAIL BABY BAIL

as for related job loss–you need to check how many parts are outsourced to other countries—you may be surprised as to who is making parts for these cars.also you dont hear anything about plants in mexico and canada closing.

Kay,
Wake UP!!!! Time for a Reality Check!
First, Explain exactly how you think these 3 can pay back anything? They are are dying on the vine right now. This 25B is going to give them “life” for 3 months!! NOTHING is going to change in regards to their ability to make money in that time. How can they pay it back if they have nothing?
As far as the union wages go, again WAKE UP-REALITY CHECK! Face a sinple fact, find any other equivalent job in industry in the US where you can make the same money as you make in the UAW.
Your not going to find it, because the truth is they are overpaid for the function they perform! That is the FACT and it is why the foreign auto companies are berating the US makers in our country with our own work force!
By all means, jump into bed with Barney “the Riddler” Frank and “claim” union busting as reason to keep overpaying for this job function. It will work real well when the company dies & your on the unemployment line!
THE ONLY SOLUTION NOW IS CHAP 11 !!!
They can restructure & renegotiate in order to become a VIABLE company again.
At that point, with New Managment in place, the idea of some unique Federal Loan could be discussed. Until then -> NOTHING!!!
By the way, going Chap 11 does not mean the collapse of the industry and its supporting businesses.
Kay – Where do you normally shop for clothes, groceries, etc. Where would you go to buy the latest DVD your kids want ?
Would you go to the most expensive store in your area?

There’s no difference among the Wall St. executives, the automaker execs, and the U.S. government in Washington.
They all suck. They are greedy idiots.
The banks and the automakers send jobs overseas while Americans go unemployed. But that doesn’t stop the big boys from collecting millions in salaries, bonuses and stocks.
The government screws the taxpayers every time they neglect to pass legislation which would put HUGE taxes on companies moving jobs to other countries. The loser is always the American worker.
Thank the U.S. government for allowing all those foreigners to come over here on visas and green cards to take more jobs away from American workers.

Reality Check….Did you hit the nail on the head with your post..WAY to GO!!!!!
KAY…sorry but the Union IS PART of the Big 3′s problem You say that the union worker has taken a pay cut. Gosh when you are making $70 an hour, yes this does include wage & benefits. The starting pay is $14.61 an hour, so I don’t think you have your facts correct. I guess you don’t know ALL the benefits that a UAW worker gets. 1. Full PAID health insurance for the ENTIRE family. 2. Health Insurance plan that only haas a $300 deductible. 3. Paid child care 4. Two 3% pay raises and a lump payraise of 4%. 5. A $3000 signing bonus in 2007 6. A performance bonus 7. Pension plan that pays up to $40,000 + 80% of a private health insurance plan + Social Security + Medicaid & Medicare. Not bad for someone that has a high school education. 8. GM is contractually required to support thousands of workers in the UAW “Job Bank” program, which guarantees nearly FULL wages & benefits for workers who lose their jobs due to automation or plant closing. + they still get unemployement check. 9. Purchase a car at cost and lower interest rates than the public. 10. they get paid while sitting on their butts in the break room when their piece of equipement is being repaired. 11. They get 12 to 14 paid holidays. The HECK with the UAW worker and their Presidents, who actually think that the mess that the auto industry is in is the fault of the banking industry. Yes that is correct, UAW Pres. Gettelfinger is quoted by the Wall Street Journal as saying this wonder problem is the fault of the banking crisis. What drugs is this guy on?

Mike_C…way to go Mike…Kay you need to get a in touch with the real world. I suggest that you go get a trash can to throw up in because the next facts about the UAW worker will make you sick to your stomack. Fact UAW GM worker makes $70 (includes wages & benefits) compared to Toyota’s $40 an hour.
$70-$40= $30 difference in pay.
$30 x 40 hours = $1,200 difference in pay for ONE hour.
$1,200 x 150,000 workers = $180 million dollars difference in a ONE week of work.
$180 million x 50 weeks = $ 9 BILLION dollars difference in payroll & benefits package between GM & Toyota worker. No wonder the BIG 3 are going broke. Screw the UAW and their workers who think that they are under pay and over worked. UAW worker makes $60-$70K a year + benefits that the AVERAGE worker would love to have. Heck we pay our Teachers a big salary of $30-$40k a year and I consider a teacher has a more important job than a line worker that screws in bolts on a car that fall apart after 4 years.

The government screws the taxpayers every time they neglect to pass legislation which would put HUGE taxes on companies moving jobs to other countries. The loser is always the American worker.
Thank the U.S. government for allowing all those foreigners to come over here on visas and green cards to take more jobs away from American workers.
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MaureenO,
We all want our job to be able to give us the income to have a good life, but that is not a GUARANTEE in life.
I’ll ask you the same thin gi asked Kay. Where do you go to get groceries? do you find yourself shopping more at Walmart/Kmart or some kind of “upscale” store?
A company is run the same way. It provides you with a job, but it does not exist just to provide you with a job. It exists to produce a product or a service that can make money for its owners! The owner may be and individual or a group of share holders. Their job is to find a way to maximize the money they make. Just as you or I try to maximize our budget and save as much as we can. Do you go to a Macy’s to buy an article of clothing that you could get at Walmart? Are you going to the most expensive gas station in your town to fuel up?

Why don’t we take that ‘bailout’ money and invest it in training the auto makers employees to make another product, such as wind turbines for infrastructure for renewable energy – they should have similar skill sets already – the factories could even be converted….Spend this money on investing in Americans – not companies that have not kept up with the times.

1. They should admit they sold the US public useless, poorly engineered, overpriced junk for at least the last several decades.
2. They should admit that their European and South American operations actually build attractive and fuel-efficient vehicles that are quite decently engineered. These vehicles, if sold in the US, would immediately make them competitive again, besides helping reduce our dependence on Middle East oil.
3. They should admit that they wasted billions of dollars in profits on misbegotten strategies, acquisitions, divestitures, and legal fees trying to preserve their benighted business model.
4. They should admit that greed, vanity, and sheer stupidity were the motivating forces for their actions.
5. They should admit that for their entire careers they were grossly overpaid, and as a confidence-building measure they would agree to repay to shareholders their entire compensation going back 10 years.
6. They should admit that their delusional business plan was predicated on the ludicrous assumption that gasoline would stay cheap, and that they could eventually convince everybody that vehicles used mostly by a single person had to weigh at least 6,000 lbs.
7. They should admit that their lives got easier, the more dependent this country became on Middle East oil, and that reversing that trend was not part of their business plan.
8. They should admit that they really don’t have a clue what to do with the money they are asking for, other than to waste it on advertising for new pickups (Ford, Chrysler), as if that is what this country needs from them, or to serve a 22% market share with about 8 brands, and keep a bloated distribution network fat, dumb, and happy (GM), as if that would make the problem go away.
These people make me sick.