It was back in late November in which United States Democratic President-elect Barack Obama had given blunt criticisms to the banks. Obama had said that the bank executives are already worth millions of dollars. He said that the bank executives do not need their bonuses.
Obama said that if the bank executives forego their bonuses, it shows that they are being responsible and accountable for their actions. But, Obama had words to say to the CEO of the top US automakers. He had criticism about the CEOs flying in private jets to Washington D.C. to request Congress include the auto industry in the bailout.
So far, General Motors has said that without an instant $4 billion, it will not last until New Years.
Democratic leaders are considering the idea of an auto bailout. But, they want the Big Three to have reasonable plans first. Democratic House Speaker Nancy Pelosi of California said that they demand a commitment from the Big Three to the future.
The Big Three CEOs: Alan Mullaly of Ford, Rock Wagoner of GM, and Bob Nardelli of Chrysler will head back to Washington D.C. However, they will not be taking their private jets. Instead, they will be taking a road-trip in their hybrid cars.
Yes, they will head to Washington D.C. via a road-trip. It will be in their fuel-efficient hybrid cars.
Mulally and Wagoner have said if their firms took the government loan, they would work for $1 per year. Plus, they said they would also go the extra mile. Both Ford and GM said they will sell their corporate aircraft.
GM will slash the pay of the top executives. Ford will do away with bonus and merit raises.
So far, it seems that Ford is taking the initiative to find solutions. It said that the automakers, the government, and the parts suppliers need to work together. Ford has placed emphasis on developing new battery technology.
Back in June, then-GOP nominee Senator John McCain of Arizona said that he would offer a prize of $300 million to any person that can create a better car battery. But, this was in response to the rising price of oil.
McCain had said that the battery must fit like any other car battery. Plus, the batter has to be cost effective. Also, he issued his “Clean Car Challenge” to the carmakers to create vehicles that give off no carbon.
In regards to Ford, it looks like that automaker is still standing strong. But it still owes over $26 billion.