The CEOs of the big 3 (Ford, Chrysler, and GM) were back in Washington this week to appear before Congress for the second time. This time they arrived via hybrid cars, as opposed to the private jets they arrive din last time. They have promised to make cars with low emissions, to accept $1 a year salaries, and to sell their private jets.
The article says "that they will get something is not in much doubt". I'm personally glad to see that the CEOs are holding themselves a bit accountable, especially since they know they are going to get money. To show up in DC to ask for money from Congress in a private jet (with the salaries they have) is insulting.
I don't think I would support this bailout if it weren't for the current condition of Detroit. I don't follow the news too much, but from what I've heard the city is doing terribly since the auto industry is failing. Even their football team, the Lions, are predicted to not win a single game this season, becoming the first team in NFL history to go winless for an entire regualr season. Basically the city is struggling in all aspects and needs this money.
2 comments:
While appreciating this sacrifices the CEO's have made that does NOT solve the problem. The problem is they are making obsolete cars. They need to start making ALL hybrids and electric cars. Point blank. that is the future of the industry. When Roosevelt was president he ordered the big three to stop making cars and start making bombs and planes. thats the kind of new direction we need now.
On a side note. of the 700billion we gave before, 150 billion was used to sure up banks. another 200billion was used for various other purposes. the rest no one knows yet what is going on with it. what happened to the accountability and oversight part of the bailout? The problems was with safeguards. theere were no safe guards.
I agree with you Vance, it is ridiculous that the CEOs think they are doing the world a big favor by making these sacrifices. The entire industry needs to start going in a new direction. We talked in fin man about the fixed costs of the US auto makers. I believe (although I cannot back it up with an article) that their fixed costs are in the 90 percents, whereas the Japanese companies are in the 50 percent range. So I agree with you, but not only do we need to only make hybrids, we need to reinvent the industry and cut down some of the fixed costs.
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