GM: Farewell Government Ownership, Hello Corporate Jets

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Thread: GM: Farewell Government Ownership, Hello Corporate Jets

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    News Contributor Premium Member Perian's Avatar
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    GM: Farewell Government Ownership, Hello Corporate Jets

    The Wall Street Journal

    December 20, 2012

    Article Quotes:

    General Motors Co. still isn’t free of government restrictions on executive pay as a result of its agreement to buy back shares owned by the U.S. Treasury, but company executives are getting something almost as good as money: Permission to use corporate jets.

    GM Chief Financial Officer Dan Ammann said during a conference call that as part of its $5.5 billion agreement to buy back 200 million of the government’s 500 million shares, the feds are loosening some of the constraints on management.

    “There is a handful of things that have been waived,” Mr. Ammann said, “including the corporate jet aspect.” Mr. Ammann added in response to a question about when GM might lease or buy some jets, “we have no current plans at this time.”

    That should be enough of a hint for marketers of corporate jets and jet-sharing services. GM CEO Dan Akerson and other top company executives make no secret of their frustration at having to fly commercial to the far reaches of GM’s global empire. Mr. Akerson told a story at the company’s recent holiday reception about spending hours stuck in airports on the way to meetings in Russia.

    The Obama administration’s prohibition on corporate jet travel for executives of bailed-out auto makers is a legacy of the outrage provoked in 2008 when the then-CEO of GM, Rick Wagoner, and his counterparts at Chrysler and Ford flew to Washington in their respective company jets to make the case for taxpayer-funded bailouts to get through the recession.

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    News Contributor Premium Member Perian's Avatar
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    Re: GM: Farewell Government Ownership, Hello Corporate Jets

    Quote Originally Posted by Perian View Post

    Mr. Ammann added in response to a question about when GM might lease or buy some jets, “we have no current plans at this time.”
    Translation: We are now accepting bids.

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    Re: GM: Farewell Government Ownership, Hello Corporate Jets

    I wish I could go bankrupt and then buy/lease a jet. Maybe, they should save their money and perhaps broker a deal for tradition business travel on airlines for employees.

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    Re: GM: Farewell Government Ownership, Hello Corporate Jets

    For a company as large as General Motors it makes sense for them to have access to corporate jets. It allows for better use of peoples time and if utilized properly can actually net a cost savings. I would bet that GM is flying tonnes of people between the US - Germany - S. Korea - Australia - China and flying all of these people commercial can get expensive (especially if many are flying business or first class). And this can waste a lot of important peoples time.

    I knew some people who worked for Chrysler (during the Daimler days) and they had a corporate shuttle between Detroit and Germany. This shuttle wasn't some luxury plane and it often flew fairly full.

    People have this vision of opulence when they think corporate jets. Don't get me wrong I know Akerson won't be flying anything resembling cattle class. But he likely flies first class commercially and a corporate jet will likely have services that are not much different. I highly doubt Akerson will be flying on anything resembling Trump's jet.

    I have a buddy that is an engineer for Bombardier Aerospace. He lives in Toronto but often has to go to Montreal (couple times a week). He often flies on the corporate shuttle from Downsview to Mirabel in the morning and back the same day in the late afternoon. Of coarse this is their buisness as well (corporate and commercial aircraft).
    Last edited by MechEng; 12-20-2012 at 07:52 AM.

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    Re: GM: Farewell Government Ownership, Hello Corporate Jets

    Because you know, it doesn't make any sense for global corporations with engineering and development centers in countries all over the world to have corporate jets.

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    Re: GM: Farewell Government Ownership, Hello Corporate Jets

    Quote Originally Posted by Perian View Post
    GM CEO Dan Akerson and other top company executives make no secret of their frustration at having to fly commercial to the far reaches of GM’s global empire. Mr. Akerson told a story at the company’s recent holiday reception about spending hours stuck in airports on the way to meetings in Russia.
    My heart bleeds!
    Welcome to the real world........who the fek do they think they are?
    Get your act together with quality products before you start thinking about swanning around in corporate jets.
    They aspire to medioctity, except when it comes to travel.

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    Re: GM: Farewell Government Ownership, Hello Corporate Jets

    Long live job perks.
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    Re: GM: Farewell Government Ownership, Hello Corporate Jets

    Just as one black eye begins to fade another appears. This is something they should not be publicizing. I don't personally have a problem with corporate jets, but why even mention it? People are still chaffed about the bailout, and losing 50% of the money to bailout GM. I've been a GM buyer all my life, but I can only wonder why corporate leadership would make such a stupid public statement for. Think that might have anything to do with year to date sales? I do.
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    Re: GM: Farewell Government Ownership, Hello Corporate Jets

    It may shock some here to know that execs usually talk business and work while in the air. A great deal that is discussed is extremely confidential and sensitive information. Not for public consumption on a commercial flight. Stock prices could actually move based on overheard conversation. Corporate espionage is also alive and well in the auto industry and where better to glean inside info than getting a seat on a commercial flight next to your competitor. Those of you actually in the business here know I don't make this up.

    So...flying commercially, even 1st class is is a major time waster and corporate security risk for persons making hundreds of $$$ per hr. For my dollar I would prefer them to be free to discuss and conduct business every daylight hour and pack as much ground time into a day as possible, face to face with other decision makers without sitting around in airports and tarmacs.

    Also "corporate jets" is a term lightly thrown around. As someone else said here, these would not be lavish or high end such as a Trump jet or those hollywood celebrities are used to. They're simply fast, private and appointed for business, not partying.
    Last edited by goatgary; 12-20-2012 at 05:34 PM.

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    Re: GM: Farewell Government Ownership, Hello Corporate Jets

    Quote Originally Posted by pinch a loaf View Post
    Just as one black eye begins to fade another appears. This is something they should not be publicizing.
    This is being reported in the context of the buyback, it's not an announcement.

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    Re: GM: Farewell Government Ownership, Hello Corporate Jets

    It was stupid to ban them from using corporate jets in the first place; just another disadvantage to the competition. I'll bet Ford kept its corporate jets flying. And you KNOW Toyota did.

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    Re: GM: Farewell Government Ownership, Hello Corporate Jets

    Quote Originally Posted by yamahr1 View Post
    It was stupid to ban them from using corporate jets in the first place; just another disadvantage to the competition. I'll bet Ford kept its corporate jets flying. And you KNOW Toyota did.


    Absolutely. Who has ever heard of such silly nonsense. A Multi-Billion dollar company, with a reach of over 1,000,000 in the workforce and it's executives need to fly JetBlue. Its ridiculous, and is a great reason not to be able to recruit top tier talent.

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    Re: GM: Farewell Government Ownership, Hello Corporate Jets

    I suspect a Gulfstream will be on order by year's end.
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    Re: GM: Farewell Government Ownership, Hello Corporate Jets

    Quote Originally Posted by yamahr1 View Post
    It was stupid to ban them from using corporate jets in the first place; just another disadvantage to the competition. I'll bet Ford kept its corporate jets flying. And you KNOW Toyota did.
    At Toyota the company pays for at best business class seats for its CEO (at least in Japan) and if the CEO wants first class he has to pay the difference out of pocket. Though with $1.7 million a year he can easily afford the difference, the CEO in Japan that is.
    Last edited by 63GrandSport001; 12-20-2012 at 09:27 AM.

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    6.0 Liter L76 V8 MechEng's Avatar
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    Re: GM: Farewell Government Ownership, Hello Corporate Jets

    Quote Originally Posted by nsap View Post
    I suspect a Gulfstream will be on order by year's end.
    Na. Go with a Global Express XRS (or now known as Global 6000).
    Last edited by MechEng; 12-20-2012 at 09:44 AM.

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