GM & Ford Bow To Pressure, Will Sell Corporate Jet Fleets | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Most Recent Daily Episodes

Episode Date

Airborne-Monday

Airborne-Tuesday

Airborne-Wednesday Airborne-Thursday

Airborne-Friday

Airborne On YouTube

Holiday

Airborne-Unlimited-01.18.22

Airborne-UnManned-01.19.22

Airborne-Flight Training-01.13.22

Airborne Unlimited-01.14.22

ANN LIVE Coverage of AEA 2021 Is Archived at www.airborne-live.net

Tue, Dec 02, 2008

GM & Ford Bow To Pressure, Will Sell Corporate Jet Fleets

Execs Hope PR-Friendly Gesture Wins Favor With Lawmakers

Executives at Ford Motor Company and General Motors -- perhaps looking for the least painful way to generate some badly-needed positive press, at a time when many Americans question the need for their very existence -- bowed to public pressure Tuesday, and announced they will sell off their business jet fleets.

ABC News reports that announcement comes as GM CEO Rick Wagoner, Chrysler chief Robert Nardelli and Ford CEO Alan Mulally -- himself the former CEO of Boeing Commercial Aircraft -- appeared before Congress Tuesday to once again beg lawmakers for $25 billion in taxpayer money to save their collective corporate keisters.

"Due to significant cutbacks over the past months, GM travel volume no longer justified a dedicated corporate aircraft operation," read a General Motors statement issued Tuesday morning.

As ANN reported, all three executives were lambasted before Congress last month for arriving in Washington, hats in hand, each onboard their own corporate jets... which all departed at roughly the same time from Detroit Metro.

Since then, GM in particular has taken steps to reduce the PR fallout from that admitted blunder. Within days, GM joined with Ford in announcing plans to scale back its corporate fleet; GM also took the Draconian step of blocking the tail number of a leased Gulfstream G-IV from public tracking.

Now, GM plans to sell off four of its jets outright. "We don't use them much anyway," said company spokesman Mike Meyerand. "It saves us a lot of money to get out of this business."

The cutbacks will also mean the closing of the company's massive General Motors Air Transportation Services hangar at Detroit Metro Airport.

Ford plans to sell its five corporate planes, ABC News added. Unlike its larger counterparts, Chrysler doesn't have a dedicated jet operation... and said Tuesday it's "weighing its options for future corporate travel" onboard leased business aircraft.

Those moves come as lawmakers have demanded all three companies to prove the requested $25 billion bailout wouldn't be an example of throwing borrowed money after lousy business practices.

In particular, Congress has demanded GM demonstrate efforts to slash its costs... in particular several onerous labor agreements with the United Auto Workers that have added significant labor-related costs to the pricetags of its vehicles, at the expense of competitiveness.

FMI: www.gm.com, www.fordvehicles.com, www.chrysler.com

Advertisement

More News

ANN's Daily Aero-Term (01.17.22): Fallen Hero

Fallen Hero Remains of fallen members of the United States military are often returned home by aircraft. These flights may be identified with the phrase “FALLEN HERO” a>[...]

ANN FAQ: Turn On Post Notifications

Make Sure You NEVER Miss A New Story From Aero-News Network Do you ever feel like you never see posts from a certain person or page on Facebook or Instagram? Here’s how you c>[...]

Aero-News: Quote of the Day (01.17.22)

“Our customers are starting to hear back from their satellites that are checking in from orbit --- and for us, that’s what success looks like. It’s a thrill for o>[...]

ANN's Daily Aero-Linx (01.17.22)

Aero Linx: International Air & Transportation Safety Bar Association Originally founded in 1984 as the National Transportation Safety Board Bar Association, today’s Inter>[...]

Airborne-Unmanned 01.11.21: Joby's New eVTOL Prototype, NASA Webb!, Skydio 2+

Also: Unmanned Carrier Ops, eHang Opens AMC, MagniX CEO Steps Down, Michigan AMC Joby Aviation has completed its second prototype aircraft in an effort to speed up its flight testi>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2022 Web Development & Design by Pauli Systems, LC