General Motors getting rid of two corporate jets
Much ado was made about the Big 3 CEOs choice of travel to Washington D.C. this week. Each one flew to our nation's capital in separate private jets, a fact that was mentioned by many politicians during two days of testimony before Congress. While it's this blogger's personal opinion that politicians took the opportunity to grandstand a bit too far on this point, nevertheless, it was a boneheaded move by the Big 3 that they should've seen coming. We've learned today that fewer employees will get to fly the friendly skies in one of General Motors' corporate jets, as the automaker has announced it will be ridding itself of two. That will cut down the current corporate fleet of leased jets from five to three, and an additional two were gotten rid of last September. In addition to dumping the G5s, GM is also cutting half its air travel staff and restricting all forms of employee travel to slow the rate of cash its burning through each month, which in the third quarter reached $6.9 billion/month. Thanks for the tip, Aaron!
[Source: CNNMoney.com, Photo by Chip Somodevilla/Getty]
Reader Comments (Page 1 of 4)
bh 5:04PM (11/21/2008)
A publicized transition from five corporate jets to three in response to public and congressional outcry perfectly fits the notion of a company that reacts and reacts insufficiently. It's as if GM is trying to make people think of it this way.
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cFoo 5:13PM (11/21/2008)
Exactly!
This is the way they've been doing business the last 10 years. They react rather than anticipates the market. The Japanese saw it coming, they kept to their formula with creating fuel efficient vehicles while our boneheaded domestic continously insisting on dumping more metals into their vehicles. Adding huge V8s to solved inefficient engines. What a bunch of morons. I bet they all drive Ferraris and Lexus instead of GMs.
2004m3driver 5:29PM (11/21/2008)
If they profit, no problem, could fly and drive ferraris all they want. They shouldn't threaten to destroy America's economy because they can't have those luxuries.
Lending them money is like throwing money into a black hole. Economy isn't going to magically get better just because they have money to keep running a failed business.
Pengwin 5:44PM (11/21/2008)
good. you know, if i was one of those CEO's I would have said, "yes, i'm willing to sell a plane and fly back commercial." it would have looked very good, very sincere and when you got back to HQ just use a different plane.
Ford Wannup 6:35PM (11/21/2008)
I am not exactly a GM fan, and it pains me to defend them. They did NOT publicize this thing you know, and it will take more than 2 days planning to return a leased jet. This was pre-planned for several months now, consistent with the fact that they returned 2 more even earlier during the year. Stop these distractions, folks.
Having said that, yes for a pre-packaged CH. 11!
bigbear7787 6:59PM (11/21/2008)
@ cFoo
I am not so sure the Japanese car companies saw this coming... I think they all built small cars because there was a market for small cars everywhere...
No one saw this disaster, that is our economy, coming... The Japanese saw a hole in the market for small cars and filled it... Now that small cars are all the rave, everyone says they are geniuses for having these cars that they already had.
I could be wrong... Thats just something I felt like I needed to say.
jv2k 7:07PM (11/21/2008)
cFoo, the japanese didn't start making small cars and fuel efficient cars as a result of their magnificent foresight; they made those vehicles because that's what sells in their home market. Japan is crowded and gas prices have always been high. Thus they get small cars.
Just look at how Honda replaced it's much more fuel efficient civic with one that gets less mpg and more hp. Look at all the SUVs and trucks the japanese companies built in america. Look at how the japanese midsized cars have bloated in size over the years and sacrificed fuel efficiency in the process. They didn't anticipate anything, they were already experiencing the "american fuel crisis" in their home country.
happy_penguin 8:49PM (11/21/2008)
Bigbear and jv2k yes you got it right. To think that the Japanese somehow could perceive the future and therefore decided to start building small cars is shortsighted and ignorant. WTF they've always built small cars! If anything, THEY were the ones who reacted to the large car and full sized truck market because that's what was selling! This was going on all while American car companies were downsizing their entire product line. So who is more evil? The Japanese saw a buck and they chased it all the way into segments they NEVER participated in. Where did American auto companies screw up with their products? Mostly in that they didn't work on developing their lower product line. But that's not what was selling.
Hamud 5:07PM (11/21/2008)
WOOOOOT, 6,9 billion/month?? Cut that for 2 month and you'll need to bailed out no more.
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The Luigiian 6:05PM (11/21/2008)
No, no, you misread. GM is losing money at the rate of $6.9 billion a month. This getting rid of planes will only eliminate a very small bit of that red ink.
D: Geez, I thought it was losing 7 bil a quarter, not seven billion a month. That's three times the speed of loss I had anticipated. Looks like Wagoner thought the same thing.
I think GM's a dead man walking.
Obviously DaMinority 9:38PM (11/21/2008)
It's a good thing you don't have to be right to post on this site. If it were there'd be 2 regular posters.
drmoomoo 5:08PM (11/21/2008)
Wait, they're dumping the G5? Good riddance!
:P
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carcomptoy 5:08PM (11/21/2008)
That's the amount of money total that they spent--not just on the air travel. Still, this should have been done a long time ago, I would've thought.
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MachinaDC5 5:16PM (11/21/2008)
May I suggest a replacement:
http://hondajet.honda.com/default.aspx?bhcp=1
:)
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RLQ 3:21AM (11/22/2008)
HAHA
+1
homunculus 5:44PM (11/21/2008)
golf clap
AkulaX1 6:17PM (11/21/2008)
Worst representation of a business jet ever made.
2007RC46SP2 1:55PM (11/22/2008)
"Worst representation of a business jet ever made."
and why would that be??
let me guess.. you must drive a GM.
Torrent 5:22PM (11/21/2008)
Get rid of 3 G5's: The 2 jets
And the Pontiac.
Also, if they have any G3 jets. Get rid of 'em. and the Pontiac.
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Torrent 5:23PM (11/21/2008)
oh yeah haha hilarious....
BAN HIM
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