Financial Fashion House  

December 2,2008

So it has been said that Ford, Chrysler, and GM automakers are too large for the government to allow them to fail. So no matter how much you may disapprove, your tax dollars are going to assist these automakers. 

This week, the Big 3 are heading back Washington, DC to face the Senate on Thursday and the House of Representatives on Friday.  These oh so humble gentleman are not taking their corporate jets to the Nations Capital this time.  Oh no, sources say that Ford CEO Alan Mulally will be taking the 8 hour trip from Detroit using the roads and highways of this great country.  I wonder if he will travel in the Ford F150 truck or go green and make the trip in the Ford Escape Hybrid. Travel plans for the other CEOs have not yet been confirmed.

Last month Senate Majority Leader Harry Reid (D-Nev.) and House Speaker Nancy Pelosi (D-Calif.) sent a letter to automakers demanding that the companies "explain their financial position, how they plan to spend the money and the assumptions behind their assurances that any loan will be paid back." Over the weeks the large car companies have been spending countless hours creating a plan to present in Washington this week. 

It is alleged that Chrysler may consider some sort of merger deal and GM CEO Rick Wagoner may experience some executive pay cuts.  Oh but don’t you worry about Mr. Wagner.  According to Reuter’s, Wagner’s salary and compensation rose 64% in 2007 to $15.7 million.  The company had claimed to have reduced cost and have an increase of sales in the international markets.  A year later Alan Mulally, Rick Wagoner and Robert Nardelli of Chrysler sat before the government with their hands out.

Alan Mulally may experience the pay cuts as well. It is said that Mulally is now considering taking an annual salary of $1.  CNN Money notes Mulally’s compensation package for 2008 will pay him approximately $22 million.  When Mulally came to the Nation’s Capital last month Congress asked him if he would consider cutting his salary.  Mulally kindly replied, “I think I am OK where I am.”  Then he got right back on the corporate jet and went home.

Maybe the CEOs of the Big 3 have had a big Thanksgiving slice of humble pie.  Or maybe they are tired of the “gotcha media” putting their names in headlines again.  Regardless of the reason, in these touch economic times everyday people don’t have the luxury of running up to Congress real quick and asking for a cash advance. 

Tighten up those purse strings and until next time,

Cinnamon McCann

Personal opinions are that of Cinnamon McCann and may or may not reflect the views of FinancialFashionHouse.com…depends on how I feel!