General Motors Cuts Back On Jets
General Motors has announced that they are paring down their corporate jet fleet. General Motors started this year with seven jets in their corporate fleet but the Detroit News reports that they turned in two in September and plan to jettison two more as a result of drastic cutbacks in travel expenses. The Big Three automakers all faced angry words from lawmakers on Capitol HIll when their CEOs flew in on private jets to ask for federal aid. Regulatory filings reveal that General Motors spent 256,793 on personal use of the company's aircraft by CEO Rick Wagoner, Chief Operating Officer Fritz Henderson and Vice Chairman Bob Lutz,. Ford spent $752,203 last year on CEO Alan Mulally's personal use of the company's aircraft using the jet for all business and personal travel for security reasons. Ford also spent $29,107 last year on first-class commercial airfare for Ford Americas President Mark Fields' to fly to and from his Florida home. Chrysler doesn't own any corporate jets but leases or charters planes per trip as needed and says they try to fill the jet whenever possible including giving children rides to Detroit hospitals from other cities. The corporate jet has been seen for years as a necessary perk for CEOs who frequently travel but like lavish holiday parties, luxury boxes at sporting events, and corporate retreats, the private jet now serves as a symbol of greed and foolish expense.
Reader Comments (Page 1 of 1)
Michael Nov 23rd 2008 9:06AM
WASHINGTON - MARCH 26: U.S. President George ...Image by Getty Images via DaylifeWhat a whopping case of Too Little, Too Late, Car Dudes!
This "oh, now we get it" move by General Motors is almost startling in its insincerity and lateness.
I guess they are going to go back congress and say: "See we know what we should be doing to cut costs now."
This is NOT a viability plan!
From the Ticker by Frank Ahrens ,
GM Gives Up Two Corporate Jets
Struggling General Motors, which was blasted and mocked for using one of its corporate jets to fly chief executive Rick Wagoner to Washington this week to beg Congress for $25 million in bailout cash, is preparing to give back two of its leased corporate jets, the company said today.
GM started the year with a fleet of seven(!) leased jets, gave back two in September and is preparing to shed two more, bringing the GM fleet down to three jets.
GM said the company was already preparing to give back the two additional jets even before this week's hearing.
"We understand the symbolic issue of people showing up in Washington in corporate jets," GM spokesman Tom Wilkinson told Dow Jones. "We're very sensitive to that."
Why the private jets to begin with?
GM's board -- like many corporate boards -- requires its top executives to fly on company planes for their own security. Further, GM said, the smaller jets can fly company execs to places not easily accessible by commercial flights.