Detroit high-flyers land in Washington

Posted by Michael Hainsworth on November 19, 2008

The Detroit 3 want $25 billion from the U.S. government and about $3.5 billion in taxpayer cash from Canada. They say they've been tightening their belts. But for some, it's not enough.

The U.S.-based Citizens Against Government Waste is accusing the CEOs of GM, Ford, and Chrysler of slapping taxpayers in the face. The three amigos arrived in Washington for the two days of testimony on private corporate jets.

GM's Rick Wagoner is asking for as much as $12 billion. Flying in style cost the company $20,000 round-trip. A first class round-trip ticket in business class on any airline is less than a thousand bucks.

Meantime, while GM has been losing money for the past 3 years, Wagoner got a salary increase in 2008.

This spring Ford reported its CEO got $2 million in base salary in 2007. A $4-million bonus and $11 million in stock and options, too.

Ford's Alan Mulally told the committee he's cut expenses, fired workers, and closed 17 plants. But he still has a corporate jet written into his contract. He doesn't even live in Detroit -- he flies to and from Seattle on weekends. And Mulally's jet is just 1 of 8.

Meantime, back on Capitol Hill, the $25-billion bailout bill is expected to include provisions to replace management.

 

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