No Corporate Jets for Auto Executives This Time
This time, GM Chief Rick Wagoner will drive a company car to Washington instead of flying by corporate jet as he seeks a government bailout, a spokesman says.
Wagoner will drive in a Chevrolet Malibu hybrid sedan when he makes the 520-mile trek from Detroit to Capitol Hill, General Motors spokesman Tony Cervone said Tuesday.
Ford Motor CEO Alan Mulally also is traveling by car from Detroit for his second appearance before two legislative committees as the Detroit automakers seek $25 billion in government loans. Chrysler CEO Robert Nardelli will not travel by corporate jet. A spokeswoman says his travel plans will remain secret for security reasons.
All three executives are returning to Congress for hearings on Thursday and Friday. They are seeking the bailout loans to help them through the recession and the worst sales downturn in 25 years.
Lawmakers criticized the CEOs last month for traveling in separate private jets to seek the loans.
In Tuesday morning trading, GM shares rose 30 cents, or 6.5 percent, to $4.89. Ford shares also jumped 30 cents, or 12 percent, to $2.85 after the company submitted its restructuring plan to Congress. The plans include canceling all 2009 bonuses for global management and North American workers.
Ford said it hopes to restructure the company without accessing government loans, but promised CEO Mulally would work for $1 per year if the automaker did access funds. The company said it will sell its corporate aircraft, and is requesting access to up to $9 billion worth of bridge financing as part of its transformation plan.