Saving the US Auto Industry

[tw]

From the Wall Street Journal of 26 Nov 2008:

American International Group Inc., the struggling insurance giant that needed a $150 billion government bailout, put new restrictions on its executives' compensation, including a $1 base salary for its chief executive and elimination of bonuses in 2008 and raises through 2009 for its top seven officers.

The company also said there will be no raises through 2009 for the 50 next-highest executives.

This should not be news. This should be routine and always required.

[tw]

From Bloomberg News of 27 Nov 2008

GM Said to Study Shedding Saturn, Saab, Pontiac to Win U.S. Aid

General Motors Corp., working to cut costs to win $12 billion in government loans, is studying whether to shed its Saturn, Saab and Pontiac brands in addition to Hummer, people familiar with the matter said.

Selling or dropping brands would save money and reduce overlap as the biggest U.S. automaker struggles to avoid running out of operating cash by year’s end, said the people, who didn’t want to be identified because no decision has been made. GM’s other U.S. brands are Chevrolet, GMC, Buick and Cadillac.

A GM that wants to survive should be terminating half its SUVs and either the Corvette (that does not earn a profit) or a rediculous new 400 Hp Camaro. Also eliminate most V-8 powered products. Benchmarks for what a responsible Rick Wagoner will declare next week if he has any balls and any interest in saving GM.

I seriously doubt Wagoner will do even half this. It would require him to make hard decisions. He has a long history of simply throwing money at problems.

U.S. operations should be restructured to a maximum of four brands with a 17 percent to 18 percent U.S. market share from the current 8 brands and 22 percent market share, a Deutsche Bank AG analyst wrote in a report yesterday.

[classicman]

So "those in the know" agree with us here on the cellar. Aren't we just the schmart ones.

[TheMercenary]

Yea, but it hasn't stopped the Dems from wanting to give them more of our money.

[DanaC]

... how can you say that with a straight face, merc?

[TheMercenary]

It is very easy. Really...

[TheMercenary]

HA! Poor fellas are feeling a bit picked on.

http://www.bloomberg.com/apps/news?p...efer=worldwide

[classicman]

Critics of a federal aid package for GM, Ford and Chrysler spotlighted the exchange to attack the money-losing companies as undeserving of a bailout. GM, the biggest U.S. automaker, has said it may run out of operating cash by year’s end without government loans.

GM also has seven planes in its own fleet. All were grounded yesterday, said a spokesman, Tom Wilkinson. Two are for sale and two are in the process of being listed for sale, while Detroit-based GM plans to keep three, he said.

Good, its about time! Why do they need 7 jets anyway? WTF?

[ZenGum]

Why do they need three?

Why do they need any? How often do their execs fly somewhere that isn't serviced by regular airlines? I haven't actually checked, but I'm pretty sure Detroit airport has plenty of flights going all over.

[tw]

Originally Posted by TheMercenary

It is very easy. Really...

Of course. Lying comes naturally to some.

They need you in Detroit.

[tw]

Originally Posted by ZenGum

Why do they need three?
Why do they need any?

As posted previously, GM corporate policy says commercial flights are too dangerous for their executives. Top corporate executives are not permitted to fly commercially.

[ZenGum]

WHAT?????????? I missed that post.

Did they say that with a straight face?

I am torn between laughter, disgust, pointing out that commercial flights are (statistically) safer than private flights, and telling them not to be such precious namby-pambies. Someone needs a good slap.

[TheMercenary]

Originally Posted by tw

Of course. Lying comes naturally to some.

They need you in Detroit.

So I can help eliminate them?

[Undertoad]

Public hates you taking your corporate jet? Don't let them have that information:

GM Asks U.S. FAA to Bar Public Tracking of Leased Corporate Jet

Nov. 27 (Bloomberg) -- General Motors Corp., criticized by U.S. lawmakers for its use of corporate jets, asked aviation regulators to block the public’s ability to track a plane it uses.

"We availed ourselves of the option as others do to have the aircraft removed" from a Federal Aviation Administration tracking service, a GM spokesman, Greg Martin, said yesterday in an interview. He declined to discuss why GM made the request.

Flight data show that the leased Gulfstream Aerospace G-IV jet flew Nov. 18 from Detroit to Washington, where Chief Executive Officer Richard Wagoner Jr. spoke to a Senate committee that day and a House panel the next day on behalf of a $25 billion auto-industry rescue plan.

Fuckers gotta die.

[classicman]

Originally Posted by ZenGum

WHAT?????????? I missed that post.
Did they say that with a straight face?

I am torn between laughter, disgust, pointing out that commercial flights are (statistically) safer than private flights, and telling them not to be such precious namby-pambies. Someone needs a good slap.

Yeh - that was brought up as their excuse after they were exposed for all taking the corporate jets to the hearings.

Originally Posted by Undertoad

Public hates you taking your corporate jet? Don't let them have that information:

GM Asks U.S. FAA to Bar Public Tracking of Leased Corporate Jet

Fuckers gotta die.

Line 'em up! DO NOT BAIL THESE GUYS OUT! Take them all to court and share their millions with those whom they screwed used and abused. Perhaps a little poetic justice might help.