GM to return two leased jets amid criticism

[mgescuro]

GM to return two leased jets amid criticism

General Motors Corp(GM.N) will return two of its leased corporate jets amid intense criticism in Washington this week on the luxury travel arrangements of its chief executive even as the company pleads for federal aid.

CEO Rick Wagoner was in the capital to testify on the company's dire financial situation but his testimony was overshadowed by irate lawmakers who blasted him for flying on a private jet to ask for public funds and failing to make personal sacrifices in exchange for federal assistance.

Chief executives from Ford Motor Co(F.N), and Chrysler LLC, who were also there to plead for $25 billion in federal aid, came under fire too for flying to Washington in private jets.

GM spokesman Tom Wilkinson said on Friday GM decided to return the aircraft because of a "really aggressive cutback in travel."

The company, which is in a cost-cutting mode, is scrutinizing every trip, he said, but declined to disclose the name of the company it leases the airplanes from.

Wilkinson said the decision to return the leased corporate jets was made before this week's hearings and that the company in September returned two other of the seven jets it had at the beginning of the year.

"There is a perception issue," Wilkinson said of Wagoner's travel to Washington on a private jet. "We need to be very sensitive to that going forward."

He, however, said the company has not decided on what mode of transportation Wagoner would take if had to travel to Washington again.

Wagoner and Ford CEO Alan Mulally are required by their companies to fly by private aircraft for security reasons, according to company documents filed with the U.S. Securities and Exchange Commission.

The policy for Chrysler CEO Robert Nardelli is not required to be disclosed because the company is not publicly traded.

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Obviously.... Wagoner will still be using a private jet to travel to Washington.
So the media criticism is UNWARRANTED!!!!
Dumb asses.

What the media doesn't understand, large companies like GM, Ford, GE, Sony, et al. ALL HAVE PRIVATE AIRCRAFT!!! And I'm not talking about 1-2 jets either. I'm talking DOZENS.

[blawrence73]

Seems to me with the critical financial condition of GM poor old Rick and the other execs could downgrade to first class on a commercial airline. His trip to Washington in a private jet was like going to the welfare office while driving your new luxury car.

[smithrobs]

If they had flown the $288 coach seats advertised on the news, they would have been accused of grand standing to exaggerate the unfortunate circumstance they put themselves in. If they had drove a hybrid or rode in a hybrid bus, same thing. They "can't win for losing" and they are an easier target to grill on the hot seat than some "Financial" CEO who pulled the handle on the slot machine a few times too many. Very much like kicking your dog because you had a bad day at work.

[mgescuro]

Originally Posted by smithrobs

If they had drove a hybrid or rode in a hybrid bus, same thing.

Mullally arrived in a Hybrid something. I saw the arrival briefly.
I know I was seeing things, but it looked like a Hybrid "Superman" Taurus!!

[Stevasaurus]

Originally Posted by smithrobs

If they had flown the $288 coach seats advertised on the news, they would have been accused of grand standing to exaggerate the unfortunate circumstance they put themselves in. If they had drove a hybrid or rode in a hybrid bus, same thing. They "can't win for losing" and they are an easier target to grill on the hot seat than some "Financial" CEO who pulled the handle on the slot machine a few times too many. Very much like kicking your dog because you had a bad day at work.

I thought exactly the same thing!

[Blair1118]

Why couldn't they charter a small jet instead? Isn't that a whole heck of a lot cheaper than leasing a Gulfstream and still fulfill the safety requirement?

[gardnet1]

Quick! Let's ready a bailout plan for Gulfstream and the corporate jet industry! Just take a billion from the automakers loan program.

[johnny smallblock]

Originally Posted by smithrobs

If they had drove a hybrid or rode in a hybrid bus, same thing.

I disagree. In fact that is exactly what Wagoner should have done. He and several other GM execs should have driven up in a Volt, Malibu Hybrid, Vue Hybrid, Cobalt XFE and Aveo. Maybe even a Tahoe Hybrid. Anything to make the point that they are starting to make more efficient cars.

Any of the 3 execs who didn't realize that the perception of Detroit is as a maker a oversized inefficient trucks should be out of work yesterday.

[mbukukanyau]

Originally Posted by mgescuro

Mullally arrived in a Hybrid something. I saw the arrival briefly.
I know I was seeing things, but it looked like a Hybrid "Superman" Taurus!!

It was a Lexus LS

[mgescuro]

Originally Posted by mbukukanyau

It was a Lexus LS

It was not!
It was in that gawd awful silvery light green color.

[mbukukanyau]

Big oil should bail out big car, and big government should get out of the way.

[joemac]

It's a joke that this is an issue at all.

It's a cost issue. At the rate of pay for a CEO, idle time costs money. You can either pay for more efficient time use (private jet). Or you can waste time, sitting at an airport, delays, etc.

At the per hour rate of most CEO's it's a better cost effective use of time to use the private jet.

We could say the same to ourselves. Why do we fly instead of drive? Time efficiency. Time is money. What's one's time worth. That's the key.

If I'm a business owner I want my people to be working with minimal idle time, best effective, efficient use of their time. The overhead getting on a plane today commercially is extreme often taking longer to get on the plane than the flight itself.

[GMRULES]

Originally Posted by mgescuro

It was not!
It was in that gawd awful silvery light green color.

It was a 2010 Fusion Hybrid

[johnnyl321]

I'd like to know why every parts and sales manager for General Motors has to drive a Cadillac Escalade as their 'demo'. GM foots the gas bill and the maintenance on them....what, they don't think that their managers would do as good as a job driving a G8, or Malibu LTZ or Saab? I thought part of the idea is to get these vehicles out in the open to show them off. But what do I know...I've only been selling GM cars for 10 years to the waning American public.
Another thing that frosts my flakes is the whole perception thing with GM. Does Mr. Wagoner live in a bubble? In the automotive industry, and I'll capitalize this to make sure everyone can read it, PERCEPTION IS REALITY!!! What the buying public perceives, it BELIEVES. They perceive an import is a better car, they will believe it's a better car. They perceive GM doesn't give a crap about the consumer, they believe that GM doesn't give a crap about the consumer. Law of the land, so to speak. And to this effect, what does GM spokesman Mr. T. Wilkinson say....."There is a perception issue," Wilkinson said of Wagoner's travel to Washington on a private jet. "We need to be very sensitive to that going forward."....very well said Mr. Wilkinson...the American public has been telling GM that for years. And now GM wants loans to help it thru these difficult times...what about when the customers came to GM in difficult times with complaints about their vehicles? Oh yeah, turn a deaf ear to those that purchase your products and now come with hat in hand when YOU need something.

[TimR]

Here is a funny thought, last year Wagoner made what, 15.7 million??? Lets go 15 million even, that works out to 1712.30 every hour of every day. So if he spends 2 hours in line, an hour on the plane there, and hour back and another 2 hours messing around to get home that is 10, 200.00. Lets not forget all the people that tag along too...

So yeah agree it looks bad and could certainly be trimmed but the CEO's of large companies live in another universe from us, private jets can save money overall.

I think its worse that none of them have volunteered to cut their wages to help out. Just shows the arrogance...wtf does this guy do with all his money?? Most people think 100K a year is living pretty good, it would take you 147 YEARS at 100K to make what he makes in ONE year!!! You'd think he would be a little smarter with how he presents himself, the issues and the company, I mean really what is he being paid for??