Big 3 Automakers Find a Bit More Love in the House
In a New York Times article by Bill Vlasic and David Stout, it is reported that Richard Wagoner of General Motors, Robert Nardelli of Chrysler and Alan Mulally of Ford found Barney Frank’s House Financial Services Committee more receptive following the announcement that another 553,000 Americans lost their jobs during November 2008.
As you listened to the CEOs plead their case did you wonder about their backgrounds and compensation? Well I did too, so I consulted “the Google”:
Richard Wagoner - Forbes profile including 2007 compensation package of $14,415,914.0
Here is an opinion piece by Zac Bissonnette of Blogging Stocks on Mr. Wagoner and his ability to carry out his job from August 2008.
Robert Nardelli - New York Times profile from May, 2006 while Nardelli was CEO of Home Depot.
A Fortune article by Geoff Colvin from April, 2008.
Alan Mulally - BusinessWeek article by David Kelly from September 2006. An interview with Mulally and Bill Ford about the future of Ford under the leadership of the former Boeing executive.
The Financial Times Daniel Dombey and Bernard Simon write about today’s performance by Mr. Mulally.
Finally, an interesting take on how to save the US auto industry by the blogger Scarecrow of Firedoglake
3 Responses to “Big 3 Automakers Find a Bit More Love in the House”
Let them declare bankruptcy. It’s the only way to restructure the ridiculously expensive union contracts that are killing all three companies. The government could structure a guarantee for customers’ warranties to eliminate the only objection I’ve heard to bankruptcy.
In bankruptcy or not there are going to be thousands of jobs lost. Other, possibly new, companies will buy the brands shed by the big three and will replace some of the jobs lost.
Giving them government loans now is throwing good money after bad. All three can’t survive given their current condition and outlook. Let ‘em declare.
Jeff, It has been said that 1 in 10 jobs in the US is related to the auto industry. That may not be exactly right. However, how should the government handle the thousands of jobs lost in the short term? Won’t government money end up being used to support these people through unemployment, etc? By the way, I don’t think Ford would end up in bankruptcy without the money.
The jobs will be lost either way because in order to survive the big 3 need to become leaner and meaner. GM’s plan to congress contained thousands of job cuts. It seems to me there will be fewer job cuts in bankruptcy because the companies will be able to restructure their union contracts and reduce costs to be competitive with the foreign competitors making cars down south. Without restructuring of the contracts they will have to cut more jobs.
If Ford can avoid filing while GM and Chrysler do, and then they combine, Ford will be in a sweet position.
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