His little commute to D.C. in GM’s Gulfstream IV cost $20,000. He could have flown on Northwest for under $1,000.Apparently Rick Wagoner thinks nothing of using a private jet to fly his sorry self to Washington D.C. to beg for money. Apparently Rick Wagoner is a moron. Doesn’t he have a board member or VP or administrative assistant who would kindly question that move? At the very least his wife should have said something! And if he’s surrounding himself with such lily-livered advisers then he needs to be gone. Like yesterday. Maybe like a year ago.
Don’t get me wrong: I am all for big pay for big work. But leading by example goes a long way and if Wagoner wants anyone to think he’s serious about saving a company that directly and indirectly employs a gazillion people he needs to park his jet and open a Delta Frequent Flier account.
As I posted on your earlier GM item (albeit late) I truly am starting to believe that they need to declare bankruptcy. Not only to renegotiate their labor contracts, but to clean house at the top, as well. They are undoubtedly trying to follow AIG's lead on free money... Do you think they'll also have a 400k party for the execs if they get help?! Does it never end! We (my family) will probably no longer be solvent, but from a bigger perspective it seems to be the only answer that makes sense.
ReplyDeleteOn another note, I am selling our 4tickets to Mannheim Steamroller at the Wharton Center on Sat. night. Great seats, too - Are you interested? (I know you don't get CHESS info). Call if you are, because they are going on Craigslist soon - Have an awesome day! (Or... try, anyway...)
MG
Yep, I think the worst of that was when the senator asked for a show of hands of those who had flown commercial, not only did none of the Big 3 chairmen raise their hand, but they couldn't even manage to look ashamed of it! So, actually, they collectively wasted $60,000 to go beg for billions. Pure, unmitigated hubris.
ReplyDelete/tina
Hi Tina,
ReplyDeleteHubris is one of my favorite words! It so fits for Wagoner and the other chairmen who flew up on their private jets.
I think GM may get some money indirectly through GMAC since they applied to become a Bank, which then would qualify them to collect some of the $700 billion bailout that Paulson is handing out to resurrect the financial companies. GM owns 49% of GMAC. I don't think they could get the money from the Gov. and then turn around and give GM a loan but who knows, we'll wait and see.
ReplyDeleteHere's another good article about the whole mess, http://www.acton.org/commentary/488_the_bailout_economy.php
You should have used a few more cuss words to drive home the point!
ReplyDelete-dse
Hubris... or as the Ashkenazic Jews would say... Chutzpah.
ReplyDeleteDSE - I would have used more cuss words but one is my limit. Well, on my blog, anyway. Don't ask my kids about that...
ReplyDeleteOh, Chef, thanks for bringing the Ashkenazic Jewish voice to the table. (I had to Google that one.) A lovely contribution.
ReplyDeleteWell said, Christy.
ReplyDeleteEspecially the title.
Maybe Wagoner could hitch a ride on Al Gore's Gulfstream IV. That would cut the carbon footprint and expenses in half.
It is going to take more than Rick stepping down. This company has had it's head in the sand way too long. "But that's the way we've always done it" is the motto that flies on a flag outside of the GM Bldg.
ReplyDeleteRick, although in the lead, has nothing but YES men working for him. People in this company are afraid to voice themselves for fear of reprisals. Rick actually listens, but down the line of mucky mucks are hard nosed arrogant execs that unless you are on the same level with them, just don't listen.
If I have my druthers, I'd fire the people below Rick who keep sugar coating the state of the business. Lutz, Henderson, etc.. to name a few.
Secondly, the BOD needs a major overhaul. We need some industry leaders in the auto business. Some economists, auto analysts, etc. have you taken a look at who is on the board? What the heck do they know about cars?
Thirdly, you need to give people what they see at the shows, not a watered down version of what typically looks like every other car on the road. If ever your bubble is burst its when the final product is on the street.
Engineers/designers are not allow to breathe imagination...they are placed in a box and told where the 4 walls are (above that...barbed wire).
GM will survive, but it will take a bigger personnel overhaul than Rick.
The UAW ... that's another story altogether. While it serve its purpose upon formation, they have taken things totally out of scope. Their days are numbered and so will their membership. They never thought about the business that supports their contracts. To pay the janitor $25 and hour plus cost of living is NUTZ! To negotiate the returned of a fired employee for malfeasance is NUTZ. To sit with your feet up and get paid it NUTZ, To meet your quota in 3 hours and sit for 5 hours and wait for overtime to do the rest is NUTZ.
Don't blame this on Rick, blame it on the culture within the company. It's going to take much more than the latest BUZZ word/program in the company to change the mindset on how they operate. Too many are stuck in their ways and see the latest buzzword/program as just another fly by night thing. never taking it to heart. And God forbid you voice your opinion... you are the ODD MAN OUT!
A merger with Chrysler is not the answer...they can't afford more debt and legacy costs. Chapter 11 is the best answer in the long haul.
My two cents!