GM CEO To Continue Flying Private, Company Will Downsize Jet Fleet

From ABC News:

General Motors said today that it is putting two of its five corporate jets out of service because the planes are not being used enough. The top three executives at GM, however, will continue to use the private luxurious jets for all of their business and personal travel, despite a flurry of criticism over the perk following an ABC News report this week.

An ABC News investigation revealed that the top three automakers have together spent several hundred million dollars to buy, maintain, and operate a fleet of top-of-the-line private jets for their top executives.

Comments

[Erdgeist]

As long as the aircraft is made in America I have no problem with what the CEOs use as transportation. Where I have the problem is with offshoring and labor arbitraging, and more fundamental, the lack of a coherent national economic policy which takes into account the role of manufacturing and its importance to the middle and lower class. Without domestic manufacturing we are creating a phantom GDP -- or better said, a phantom economy.

[frantaylor]

There is really no such thing as an American made, or Japanese made, or Chinese made, product any more. Globalization means that parts and services come from everywhere. Sure a few screws were tightened in an American plant but when the subassemblies come from other countries, the entire concept of where something is "made" is non-existent.

[fireW]

Oh how impressive. Their sense of elitist entitlement has been reduced to merely one private jet. These are hard times, indeed. Repub jerks, all . . . . .

[boomer1949]

Maybe they should sell them on eBay.

[katmeyster]

I am so sick and tired of looking at a row of these white guys sitting before a Congressional committee trying to explain why we should give them money. They just don't get that it's not just about the private jets -- it's about all of their toys and millions of dollars that they feel entitled too while the rest of us are set up as patsys to pay for their mismanagement and hubris. They espouse free markets and capitalism while they have been bolstered by legislative protectionism. They want to be free to spend our money, but not be accountable for it. And now, as a great diversionary tactic, my home town paper has people saying its all the fault of the workers because they make so much money and have such great benefits. Please don't fall for this -- I'm sure that lurking behind whatever decision is made is the intent to dissolve the union and not pay legacy costs.

[BlueZoo]

What bothers me more is why we didn't see the heads of the Wall Street banks dragged before Congress and made to testify! These banks got the bailout money virtually sight unseen but Congress demands the auto industry execs appear and be grilled. There's a tremendous inequity here and it is very disturbing.

[breezyholler]

Congress ignored public opinion during the Wall st. bailout....It's catching up with them now.
The election of Obama sent a strong message that WE THE PEOPLE are becoming more vocal....and informed with each passing day...WE must keep that ball rolling...that's how democracy works !!

[jazabelz]

Completely agree. The automobile leaders are looking at this as a great chance to bust the unions which have already maid concessions to management. There should also be a fair amount of blame and responsbility placed on the Board of Directors, major stockholders and Wall Street for encouraging the greed that has resulted in our current economic meltdown.

[breezyholler]

The average auto worker gets around 100 k in salary and benefits....GMs CEO gets 28 million...if he only got 8 mil...another 200 people could be hired on the remainder ...this is excessive greed...and should be criminal!

[thankgodimanatheist8]

I would much rather they downsize (literally in pounds weight) their heavy cars so they get better millage. We need good single payer health care and social security then GM and Honda can compete on equal basis. Unfortunately GM would still lose because their designs are (in general) not as good as their competitors. However, they do have a few world class models which should be supported.

[WhirledTraveler]

Public opinion (ok, mine): Way too little, way too late.

[andvoodoo2]

I agree.

[bujeeboo]

Oh please. It's a flying office, for godsakes.

This jet thing is so stupid.

Tell me all you experts in business out there. Which is more productive, having your employees stand in a three hour security line, and be completely unavailable by phone or internet for the duration of the flight? Or be on the plane where you can call, fax and internet from the entire time?

This envious cry of "they should all fly commercial like us" shows that none of us have an idea of what running a multinational corporation is like.

Yes, these guys are bums. Yes, they are lousy managers. But I hardly think they would be BETTER lousy managers if they didn't fly on corporate jets.

Okay, let the insults fly, I can take it. (winces)

And by the way, I am a true blue "card carrying" (if there was one) LIBERAL. I am not a Conservative or a troll. I just think this line of the story is so stupid and fuels "class envy" which I hate to see coming from Liberals.

[Indtxwm]

Well, I have a problem when they are coming to the tax payers for money. You want a dollar from me find a way of saving a dollar before I give it.

Now, would you know who any of these people were if you were to see them on a commercial plane? No, neither would the majority of other citizens.

[bujeeboo]

It's cheaper (for a variety of reasons - including downtime) for a company to fly a corporate jet than it is to fly commercial.

No, perhaps I wouldn't know them by sight, but don't assume that there aren't business reports who make it their job to know who these people are by sight.

Anyone in on-site sales will tell you that their car is their office. It's much the same situation.

[jazabelz]

I just don't see it as "class envy." I work for a very large corporation which operates in 12 states throughout the US. Our officers and board fly commercial - coach!!!! If they have to wait in line with "regular" people it's not big deal and even though they receive very large salaries, their hourly rate time the amount of time in airports, security clearance, etc. in no way equates to $20,000 for one round trip on a private jet. All of our exect have blackberries and are very capable of conducting business while waiting for their flights, etc. Your argument just doesn't "fly" - pardon the pun! If your company is having serious economic problems, you cut out the fat first.

[luckytasha]

You make some interesting points. However, I would disagree that the general outrage at their private jet habits are fueling "class envy".

Their companies are in trouble. They need to cut costs (among other things). One small step could be not continuing going forward with bloated habits and ritual born out of better times. These aren't better times, and flying in private jets for business and personal reasons is only one symptom of a much larger problem. The fact that they are just NOW grounding two jets is laughable. As someone else said, too little, too late.

[MCSqueak]

I agree with the parent poster. I have no problem with them flying their own jets. To add to they whole argument of efficiency/time savings, these jets can land at almost any airport, not just the big ones served by the major airlines. This means additional time savings when you don't have to grab a flight on another short-haul airline to get out to the middle of nowhere, or rent a car and drive, etc.

However, as a PR move, it was STUPID. You think they would have realized that. But then again, they don't seem to be the best at running successful businesses. ;)

[poco767c]

If they ever want to see any government stimulus money they must sell the planes, and put the revenue into expansion of US plants.

[PatA]

A story by ABC won't have to pressure me to keep driving my 1999 Silverado pickup. The economy keeps it at my house. Too bad that people have bought (myself included) automobiles from the wrong companies for so long. Throw out the CEOs and make cars that get good gas mileage and don't pollute.

[GeorgeP922]

Ever wonder why GM never offered a V6 Diesel for your truck?

My dad has the same truck and a 5.5 V8 is not needed.

GM/Ford deserve no mercy, they had a whole decade of Fresh automotive technology they were to cheap to lease, and too lazy and greedy to develop.

[jazabelz]

Sorry -- I'm not standing up for the big car companies, but the American public demanded bigger and more powerful cars -- why should the car makers of tried to push something on the public when they had no desire for it. This is capitalism for you. If the government had put conditions into place requiring better mileage in order to protect the environment and fuel consumption years ago, then perhaps everyone would have gotten on the bandwagon much earlier. But, as long as everyone thinks the market must be driven by consumers, this is what we will continue to face. I doubt your father or PatA ever thought about buying a smaller more fuel-efficient car/truck, even if they were offered.

[hortonhearsawho]

Put them all on one jet and let mccain fly it?

[KOisGod]

LMAO - great idea!

[omahkohkiaayo]

Perhaps with George W. Bush as co-pilot.

[hortonhearsawho]

Oh come on, that could just have easily been anyones private jet. Not anyone we knows but....

[tomas0808]

They didn't downsize the fleet until they were forced. They will not change until they are forced. Force them by letting them go bankrupt and reorganizing

[breezyholler]

It is WE THE PEOPLE who must continue to apply pressure on our reps to put an end to this sickening extravagance...No one deserves a $28 million salary...I don't give a f*ck what they do...the president of the US makes $400,000....Capitalism as well as democracy cannot survive without sense of fairness and honesty...as it is now 90 % of the population serves the top 10 %....that has to cease...NOW !

[BoulderSue]

Hate to say it, but whatever else you think of Gov. Palin, she did get rid of tthe governor's private jet, even if it wasn't quite how she descibed it.

[KOisGod]

So, big three, what's the new business plan? Asks congress...

Well, we, we, we, yes, ahem, we'll reduce the size of our corp jet fleet. And we promise not to fly to washington, each of us in our own jet, we'll jet pool instead, one of us up front, one of us in the middle,and one of us in the very back - that would be that Chrysler guy, what's his name?

Very good Captains of Industry - Here's your 25 billion, can we go on recess yet?

[tawntu]

I'm not paying for someone's private jet! Companies should only get bailouts when they completely eliminate executive perks.

EMAIL YOUR CONGRESSIONAL REPRESENTATIVE

https://writerep.house.gov/writerep/welcome.shtml

[Maggie0507]

If the big 3 sold all of their jets and put that money toward their corporations, wouldn't that reduce the amount they're asking Congress for? Like a previous poster said, perception is everything... Looks like they're not really intent on earning back the average person's trust.