Friday, 21 November 2008

CEOs: they just don't get it, do they?

Something is wrong with the U.S Automotive Industry. It seems that either the carmakers need to change the way they make cars in USA or the car companies may need to change the CEOs or the management, as the CEO's flew to Washington D.C. to seek 25 billion bailout in private jets.

Perhaps the Harvard economist Martin Feldstein is right when he called for the Big Three automakers to enter bankruptcy to rewrite excessive union contracts. One Lawmaker has said to the CEOs that flying jet to the bailout hearing is like going to "soup kitchen in high hat and tuxedo."

Rep. Brad Sherman has asked CEOs whether they would fly back commercial. The company representatives pointed out to safety, travel policies as reasons for flying jets.

Oh come on!

"There is a delicious irony in seeing private luxury jets flying into Washington, D.C., and people coming off of them with tin cups in their hand, saying that they're going to be trimming down and streamlining their businesses," Rep. Gary Ackerman, D-New York,

told the chief executive officers of Ford, Chrysler and General Motors at a hearing of

the House Financial Services Committee.

He added, "couldn't you all have downgraded to first class or jet-pooled or something

to get here? It would have at least sent a message that you do get it."

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