Ford unveils turnaround plan

[Bindare_Dundat]

Automaker promises to sell corporate jet and cut CEO pay to $1 if it borrows from the government but offers few additional cost cutting plans.

Ford Motor became the first of the three U.S. automakers to unveil its turnaround plans to Congress Tuesday, but the plan contained little in the way of new cost cuts or other changes beyond what the company had previously announced.

The company announced that the salary of Ford CEO Alan Mulally would be cut to $1 a year if Ford (F, Fortune 500) actually borrowed money from the government. When Mulally appeared before the House Financial Services Committee last month, he did not agree to the suggestion of such a paycut.

A spokesman for General Motors (GM, Fortune 500) confirmed to CNN that CEO Rick Wagoner also will accept a $1 salary. Other details of GM's turnaround plan were not immediately available. Chrysler LLC CEO Robert Nardelli agreed during Congressional testimony last month he would also agree to a $1 salary in return for federal help.

Ford also announced that it would sell its five corporate jets. Mulally, Wagoner and Nardelli were roundly criticized for flying their own corporate jets to Washington to ask for help last month.

But Mulally and Wagoner will be driving to Washington in hybrid vehicles made by their companies when they return to Capitol Hill later this week to make their case for loans. Nardelli is also not planning to fly to Washington but Chrysler has not disclosed any more specifics of his travel plans

[Hereford]

Does he give up the non-salary perks too?

Also, will he be forced to drive a Ford?

[Hedgehog]

What's your take on this?

I think they can all be saved, but it really depends on whether they are prepared to take on a new philosophy of car making.

I somehow sense that it can be done - because USA is always USA.

Ford will definitely make it.

[Hereford]

How many union shills are willing to do the same?

[Migs]

Sure they get paid a $1.  But they are millionaires already.  Also it doesn't diclsoe the amount of stock option they are getting in lieu of pay.  Stock options are the true wealth they obtain.  this is stupid

[headhuntersix]

They want a line of credit. I don't think its anybodies business how they get to DC. I guess if they don't fly on corporate jets, then all the people who supply, build and maintain those jets will be out of a job. Also its about 100 bucks cheaper to have fly their jet then fly comercial. This is a non-issue thats gotten completely out of hand. The issue is making these companies solvent and work for America..not how the bosses get around.

Also anybody familure with Union Banks. The UAW pulls workers off the line, they get pay and benefits to do nothing. The specifics are out there but how do I get that job.

Hey Migs...its a capitalist system..neither one of us has that right to ask. They deserve to get what they get...as long as they doa good job, if not fire them. Its not up to none shareholders to make that call.

[240 is Back]

Sure they get paid a $1.  But they are millionaires already.  Also it doesn't diclsoe the amount of stock option they are getting in lieu of pay.  Stock options are the true wealth they obtain.  this is stupid

Yep.  And they don't want to tell us how they'll spend the $.

They'll hand the bulk of it to their bigwig pension plans, then come back with their tin cut next month asking for $50B more.

[Soul Crusher]

Does he give up the non-salary perks too?

Also, will he be forced to drive a Ford?

I hope he starts with my Explorer.  The transmission went at 36,000 miles.

[Hereford]

And did Ford charge you a large deductible to honor their own warranty?

That's the newest thing they have going now.

[Migs]

Also its about 100 bucks cheaper to have fly their jet then fly comercial.

Hey Migs...its a capitalist system..neither one of us has that right to ask. They deserve to get what they get...as long as they doa good job, if not fire them. Its not up to none shareholders to make that call.

Are you sure it's cheaper?  I can understand safety issues and confidentiality if they conduct meetings on the plane while in transit to a destination.  You can't have that on a normal flight.

I'm for CEO's making money.  As long as they do the job right.  Look at Circuit CIty, bad mistakes, american auto makers, been spiraling down for ever, can't make a car that holds up as long as a foreign car.  Bad management for a long long time.

[Soul Crusher]

And did Ford charge you a large deductible to honor their own warranty?

That's the newest thing they have going now.

Actually it went at 36,200 miles and they told me to screw off.  It costs me a bundle.

THEY LOST A CUSTOMER FOR LIFE AND I WILL NEVER BUY A FORD AGAIN!

[240 is Back]

i've always bought american just because they used to be easier to fix/find parts for.  oldsmobile, dodge, GM my whole life.  Will I buy GM for my next car, knowing them might be outta business/ not offer support or parts for future need? 

It is the kinda thing that makes a lifetime USA buyer consider Toyota or Honda.  You know you'll be able to get an engine part for them in 5 years.  I don't know that for my Ram.

[shootfighter1]

Doesn't sound like they want to change much.  Altering a couple CEO salaries for a year is not a change in overall business structure.  I wouldn't give them the bailout with these minimal changes.
I'd make them restructure their union contracts, limit bonuses for managers and only give them when the company is profitable, would want to see better fuel standards being implemented and a focus on smaller more efficient vehicles.
If the gov is giving/loaning money, it has a right to say what that $ can and can't be used for.  We don't want the gov running the auto industry, by any means, but it can force the auto companies to alter business practices while giving a bailout loan.