Ford CEO Alan Mulally said he'll work for $1 per year to get loans

Discussion in 'Community Discussion' started by synth3tik, Dec 2, 2008.

  1. synth3tik macrumors 68040

    synth3tik

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    #1
    I thought this kind of reminded me of someone.... Oh yeah, Steve Jobs. The difference is Jobs is not asking for government bail outs.

    Personally I don't think the auto makers should get bail outs.

    http://wcco.com/national/financial.aid.auto.2.877711.html

    Discuss.
     
  2. rdowns macrumors Penryn

    rdowns

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    #2
    He's also driving to Washington in an Escape Hybrid instead of taking a private jet. These guys would have had their $25 billion if they did these things to begin with.
     
  3. PlaceofDis macrumors Core

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    Jan 6, 2004
    #3
    he's also saying that because it was one of the questions he was asked at the first hearing. and was dumb and said no.
     
  4. synth3tik thread starter macrumors 68040

    synth3tik

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    #4
    To be honest I am shocked that congress is even hearing from these guys. We still haven't got the Wall Street bail out rolling.
     
  5. Eidorian macrumors Penryn

    Eidorian

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    #5
    The keyword is loan. I really hope they do pay it back nonetheless.

    I'm enjoying the 30 MPG on my Elantra with it's crazy low end torque.
     
  6. Sun Baked macrumors G5

    Sun Baked

    Joined:
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    #6
    Ford still isn't expecting to need the money, and the CEO will get paid full salary and benefits if he doesn't take the federal money.

    If they do take the money, he is going to give it all up and take the $1, basically admitting he failed for the year.

    ---

    Hard to tell where Ford is right now, since they have been spending more than usual to accelerate the vehicle platform and engine replacements.
     
  7. Peterkro macrumors 68020

    Peterkro

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    #7
    This guy was f*cking incompetent when paid $25 million (or whatever) a year and now he's going to be competent on $1 a year,Capitalism surely does move in mysterious ways.
     
  8. synth3tik thread starter macrumors 68040

    synth3tik

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    #8
    It seems to me that over the past number of years, even before gas prices went up and during the bounty of the SUV American auto markers were still not turning a profit, where as a lot of foreign manufacturers were, even the ones with plants in the US (Like Toyota). For at least 6 years now Ford has been talking about closing down a local plant here that makes Rangers.
     
  9. ChrisA macrumors G4

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    #9
    They need a company wide cap

    One guy working for $1/year will not cut it. They have to cap the salery of EVERYONE who works at Ford to something reasonable.

    I think a reasonable cap might be the first percentile US wage. I think that is up around $300K per year. They need a company wide cap, not just something symbolic like the CEO working for $1.
     
  10. Sun Baked macrumors G5

    Sun Baked

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    #10
    Isn't the Ranger is on the chopping block like the Crown Victoria platform.

    I thought I heard Ranger got another extension and the scheduled cancellation moved from the end of the year to 2011, but the replacement vehicle isn't even in the pipeline. The small truck was set to die and a larger world platform maybe getting imported.

    Like the Crown Vic, least amount of cash to barely make it pass, no advertising at all, and wait for it to die.
     
  11. jensepollense macrumors regular

    jensepollense

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    #11
    I don't see how this would make any difference at all. It's not like he will just change his ways just because his salary is $1. And to do it just so they receive money from Congress is stupid.
     
  12. bradl macrumors 68040

    bradl

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    #12
    Well, you heard about their getting grilled for taking separate corporate jets while their companies are dying. What they didn't realize is that until an airline or company requests, their flights are trackable, and their flightplans publicly available. After their grilling from Congress, GM 'stated' that they were terminating the leases on two of their corporate fleet, and Ford was to follow. Yet, GM then asked the FAA to block tracking of their corporate flights, saying that they 'We availed ourselves of the option as others do to have the aircraft removed'.

    They're full of it, the entire lot. And the $1/year? The CEO of Continental Airlines announced 2 years ago that he was forgoing his entire salary, instead putting it to use in buying fuel so the airline's fleet could stay in the air and operational. $1/year after they've squandered everything isn't going to do a damn thing. Too bad Henry isn't alive. He'd have kicked this CEO out on his arse ages ago.

    BL.
     
  13. GfPQqmcRKUvP macrumors 68040

    GfPQqmcRKUvP

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    #13
    This guy can't do anything to please any of you. If he works for $25 million, he's a capitalist pig, if he works for $1, it's just a symbolic ploy. Just admit you hate CEO's. Sorry to tell you guys, but CEO's screw up too, it's just that the consequences of their screw ups has a little more impact on the economy than you maxing out your credit card.


    ChrisA: This is America, not the Soviet Union.

    I personally think GM and Ford need to declare bankruptcy and hope that their union contracts are voided in bankruptcy hearings. That is what is causing the downfall of these two companies, their union contracts which pay these manual laborers higher wages than most people get with a college degree. Those contracts are absolutely ludicrous, look at some of the benefits sometime. A couple million to management executives is NOTHING compared to the gross waste and overpayment of the actual blue collar workers. It's why quality suffers, it's why they can't price match with Japanese automakers that pay their workers substantially less, and it's why we may be witnessing the end of the American car era.
     
  14. bradl macrumors 68040

    bradl

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    #14
    The problem though, is that he is showing this act of faith way too late in this game. Two years ago, let alone 10 months ago, it would be seen as a strong showing of leadership by being the example of what you should do. Take a hit for your team, and work with them from the ground up, instead of from the top down. Now, he's thinking Top Down. We're hearing a lot about 'I' here, and not what they will do to support their team. Good case in point: Compare what Mulally is doing, to what the entire corporate teams at American, United, Continental and other airlines did back in 2001-2002. They took serious steps then, and restructured a lot before receiving a single cent from the government. To date, nothing from Ford/GM/Chrysler.

    Agreed. They need to at least declare bankruptcy. What the terms of it should be, is a good question. But all of them need at least Ch. 11, and some serious concessions.

    BL.
     
  15. synth3tik thread starter macrumors 68040

    synth3tik

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    #15
    CEOs are responsible for making sure a company is profitable. When not profitable it is there jobs to find out why and fix the issues. At the end of the day after all scape goats have been fired or paid off it is totally on their hands not the hands of tax payers. To say you would work for $1 means dick when you get millions in bonuses even when the company is not profitable.
     
  16. Blue Velvet Moderator emeritus

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    Jul 4, 2004
    #16

    More unsubstantiated conservative-think plucked out of thin air...


    http://www.tnr.com/politics/story.html?id=1026e955-541c-4aa6-bcf2-56dfc3323682


    What's more, workers in other countries are covered by nationalised health systems. They don't need inefficient health insurance policies to make up for what others get as part of being a citizen.
     
  17. dmr727 macrumors G3

    dmr727

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    #17
    That's the fault of the flight department. Most CEOs just assume that their flights can't be tracked. It's up to the pilots (or some other member in the flight department) to make sure their tail numbers are blocked. It's easy to do, and it was big oversight on the flight department's part.

    That said, blocking the tail numbers in the FAA's database really doesn't do much other than keep the casual observers on a site like flightaware from tracking you. Anyone that really wants to know where you're going still can figure it out. In other words, Congress would have known anyway. Getting your tail numbers blocked is more a vanity thing than anything else.
     
  18. bradl macrumors 68040

    bradl

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    #18
    True, it's a vanity thing, but in this case, it's PR that really backfired on them. They're in trouble, spend hundreds of thousands of dollars each on getting to/from Washington, get grilled over it, now want to hide where else the corporate group can go while they're begging for money.. really bad PR.

    BL.
     
  19. GfPQqmcRKUvP macrumors 68040

    GfPQqmcRKUvP

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    #19
    What you posted confirms what I was saying. Including benefits and even base salary, American automakers being controlled by the UAW are at a huge disadvantage. I don't think you understand all the benefits these people get. For example, if GM wants to shut down a plant because they are losing money, they have a system where they keep something like 80%-90% of those workers on their payroll after a plant has been closed. Search "UAW idle job banks". There's a lot of information there. This kind of stuff happens all of the time, and is not limited by the above example.

     
  20. synth3tik thread starter macrumors 68040

    synth3tik

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    #20

    That's the way it sounds. A few years ago Ford got rid of second shift and just did production on first shift. It was supposed to be totally closed a few times now. The latest time was killed when gas prices went up and the Rangers saw a little rebirth.
     
  21. dmr727 macrumors G3

    dmr727

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    #21
    Oh no - I agree. It's horrible PR. Every CEO at their level flies around in corporate jets, but unfortunately for them - they got called out on it. And as you mentioned, blocking the tails from being tracked after the fact did nothing but fan the flames.
     
  22. OscarTheGrouch macrumors 6502

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    Feb 28, 2007
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    G' Vegas South Carolina
    #22
    Instead of this bailout, they need to go into bankruptcy (ch 11 is the one that lets you restructure right?) and restructure their debt, with the govt handling the d.i.p. eventually the monies get paid back and the companies continue to operate.. or not and liquidate.
     
  23. rhsgolfer33 macrumors 6502a

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    Jan 6, 2006
    #23
    I believe the figure for the Japanese car companies was the hourly cost per employee for their US manufacturing plants, so "inefficient health insurance policies" were included in their cost as well. Regardless, US car companies are certainly spending more per employee, whether its really as extreme of a difference is debatable. The Big 3 should have fought harder in the past against the UAW to keep benefit costs for retirees down while at the same efficiently innovating new products. It really comes down to the US auto industry not diversifying their "car portfolio" enough. Was selling 10 different trucks and SUVs while producing only 2 or 3 large and midsize cars smart, hell no! It would also help if they could actually make their small and midsize cars fuel efficient and good looking; American automakers certainly have trouble on that front. I say hire a few BMW or Mercedes designers and create a car people actually want to be seen in.
     
  24. Blue Velvet Moderator emeritus

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    #24

    What benefits applied to which workers? I don't think you read the article.

    At least I've provided documented backup. Where's yours to substantiate the airy statement that:

     
  25. quagmire macrumors 603

    quagmire

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    Apr 19, 2004
    #25
    He has been CEO for 2 years, and people are already calling for his head? Sorry, he is the best CEO out of the Big 3, IMHO. Actually getting it and bringing over Euro Ford products.

    I have also heard if GM can make it through 2009, GM can potentially make a profit when the new UAW contracts take effect.
     

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