Saturday, November 22, 2008

Should We Bail Out High-Living, Inept Auto Execs?

Let's listen in to part of a conversation between Rich Galen and a fictional class:

The CEOs of what are now laughingly called "the big three" fly into Washington to make their case to the appropriate Congressional Committees. How do you think they got from Detroit to Washington?

...

If you were the head of any of the major domestic automobile manufacturing companies' public relations department what would you have recommended?

Take a commercial flight?

Good! First class or coach. Remember Ford has closed 17 plants and laid off more than 51,000 employees over the past three year.

COACH! COACH!

Yes, well. They didn't do that. Anyone else? Yes, Mr. Dimwitty?

They flew first class?

Not a bad guess but no. Someone else want to give this a shot? Miss Gotrocks?

They shared a private plane?

That, I think, might have been defensible. But, sadly, that is not what they did. Ok. I'll tell you what they did. Each Chief Executive Officer of the each of the three major American car companies took his own private jet from Detroit to Dulles Airport to attend the Congressional hearings during which they were going to beg for $25 billion.

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They really, actually each flew in their own private multi-million dollar jet plane. The Ford guy doesn't even live in Michigan, much less Detroit. According to ABC's Brian Ross,

Alan Mulally actually lives in Seattle, not Detroit. The company jet takes him home and back on weekends.

You would think that the board of directors over at Ford might have thought it might have made some sense for the company's CEO to live within commuting distance to the office.

...

According to published reports, the average United Auto Worker union member makes about $73 per hour. How much does Mr. Mullaly make per hour? Let's do the math.

Forty hours a week times 52 weeks (ignoring vacation and holidays) = 2080 hours. If we divide 21 million by 2080 we come up with a bit over $10,000 per hour.

Ten. Thousand. Dollars. Per. Hour.

And there's nothing to indicate he can hit major league pitching.

You might think the CEOs of the three majors would be willing to take a little haircut on their salaries after getting out of their private jets and into their private limos on their way to plead for you and me to provide then $25 billion to make up for their dreadful decisions.


Are these the right people to throw billions of taxpayer dollars at?

Read the rest of this painfully perceptive article at Townhall.com.