Blogs and Stories
What They're Driving
The models each of the Big Three CEOs are cruising into Washington speaks volumes about whether they deserve a taxpayer bailout.
The CEOs of the Big Three automakers were blasted by US lawmakers last month for bringing their tin cups to Washington in corporate jets. They’ve learned their lesson in the value of political symbolism (oh, now around $35 billion). So for this trip to the capital, they’re traveling in hybrid cars, no doubt with the tin cups safely nestled in the cupholders, too.
But lawmakers would be well-advised to examine the symbolism of the specific vehicle models chosen by each CEO for his journey.
Nardelli’s only hybrid choice from the company garage is a canceled hybrid. That speaks volumes about the company’s ability to make good on federal funds.
Alan Mulally, Ford’s top executive, is making the trip in Ford Escape Hybrid—introduced in 2004 as the first hybrid gas-electric vehicle made by an American car company. With city fuel economy of 34 mpg, the Ford Escape remains the most fuel-efficient SUV available today. The company’s newest hybrid, the gas-electric Ford Fusion Hybrid, achieves 40 mpg on the highway—the exact target President-elect Obama would like to see for all cars by 2020.
Ford Motor Company/AP
When Mulally steps out of the greenest SUV available today—a vehicle that offers flexibility, sure-footedness, segment-leading fuel efficiency, and the best in advanced hybrid technology—lawmakers should see a capable CEO ready to lead his company and the American auto industry in a better direction.
Mulally is arriving in D.C. with a plan that includes rushing the launch of new hybrids and electric vehicles, as well as an agreement to cut his salary to $1 a year, to sell the company’s corporate jets, and to use $9 billion in federal funds only as an emergency line of credit—not just for life support.
Rick Wagoner, GM’s CEO, is traveling in a Chevrolet Malibu Hybrid. GM has sold fewer than 3,000 units of the Chevy Malibu Hybrid since its introduction in January 2008. The low production numbers in the Malibu Hybrid—and the fact that the model uses a low-cost, mild form of hybrid that ekes out negligible fuel efficiency improvements—symbolize GM’s half-hearted attempts at making hybrids under Wagoner’s watch. Now, as the company makes big promises to Congress and moves on to its next green pet project—the Chevrolet Volt plug-in hybrid, which is not yet available for Wagoner’s drive to Washington—lawmakers should wonder if GM’s U-turn away from supersized vehicles and toward green technology is too little, too late.
Courtesy of Chevrolet
GM says it needs the federal bailout to help it survive. The automaker plans to pare back its lineup of 112 models and 15 brands—including trying to sell Hummer—and is seeking to consolidate debt. Wagoner has also agreed to cut his salary to $1 a year and sell the company jets.
Bringing Down Bachmann
Benjamin Sarlin is a reporter for The Daily Beast. He previously covered New York City politics for The New York Sun and has worked for talkingpointsmemo.com.
America's Hot Jobs (and Not Jobs)
The Daily Beast is dedicated to news and commentary, culture, and entertainment. We carefully curate the web’s most essential stories and bring you original must-reads from our talented contributors.
Nicolas Cage, Compulsive Spender
Jacob Bernstein is a senior reporter at The Daily Beast. Previously, he was a features writer at WWD and W Magazine. He has also written for New York magazine, Paper, and The Huffington Post.
I like another author's suggestion: All big three should drive Toyota Prius to DC, and say, "This is what we are GOING to build", if need be, under license. Another good idea: allow high mpg cars from Europe free-entry into the US, exempt from US standards (but meeting EU standards) to give immediate impetus for change. Oh, and one more suggestion: GM should shut down construction of the car plant it is building in Russia, and use the money to build a new, HYBRID plant HERE!!!
The Prius is a pile of Hype. The Ford Escape was there a long time before the Prius but American consumers are not buying it! Why? Snobbery? More money than they know what to do with?
Ford is building Mega MPG cars in Europe, I drove a Ford Fiesta Diesel there that did $62 miles to the gallon. Why won't the US government let Ford build these diesel cars in the US.
BTW almost all car manufacturers in Europe build great diesel cars with great MPG stats including the Big Three! Does the American consumer not like diesel? Why? snobbery? More money than they know what to do with?
I agree Ford is the company and has the chief executive with the most credibility. My bet is on Ford to survive!
Fords F150 60 MPG Hydraulic Hybrid is coming!
Buy American, you snobs, especially now that you do not have more money than you know what to do with! and the auto crisis will evaporate!
I've yet to see anyone point up the ludicrous example of DRIVING from Detroit to Washington. About 9 hours without any rest stops or meals.
ARE THEY KIDDING???
They skip the company jet but then decide to go on a ROAD TRIP?
Something is very wrong.
How about taking a plane and then renting a car like the rest of the business world does.
Prius or not, the hybrids these companies are building show a good list.
As a sidenote, IIRC the Obamas own an Escape Hybrid.
While I agree that Ford is by far the best of the Big 3 as far as being able to genuinely put its tail between its legs, admit it was wrong before, and put its best foot forward in front of Congress, there's a big thing that the author is missing: we can't all drive hybrids.
If Mulally really wanted to impress the Congress, he would have driven the Euro-Spec Ford Mondeo (likely coming to the US soon as the Taurus), a car that gets better mileage than the Chevy Hybrid... without electric motors.
While I like hybrids, what America genuinely needs is to work on making simple cars fuel efficient, not ones that require multiple motors, complicated transmissions, and bloated expectations about getting 90 MPG. Ford, which is emphasizing bringing over its wildly popular Euro Ford models, all of which get excellent MPG and don't cost too much, is by far the company with the greatest ideas.
So why is GM trying to pawn off Saturn? The Saturn Aura (itself a German Opel) was the Car of the Year in Detroit. If Saturn is the greatest company in the GM Marque to bring over fuel efficient, European cars (that are rated really, really well), why sell it? Especially in order to keep GMC, which simply rebadges Chevys?
Chrysler is dead. They just can't make good cars anymore. I maintain that the Caravan was one of the greatest cars of all time, but Chrysler is about to turn into AMC: dead, forgotten, and missed by only about six people.
Has anyone heard of a carpool?
They could have all conspired on the drive here to get their plans and stories straight...
With all due respect, the fact that you think that driving an SUV is progress for American car company executives is just as big a problem as the fact that they're driving them. They are all late to arrive at the 21st century. These CEO's only cared about the next quarter's profits, so there was/is no long-term strategic thinking available to them. However, large sums of shareholders' cash is always available to them, whether they perform well as executives or not.
Wake me up when our Congressional leaders offer to take a major pay cut and refuse luxury private travel. Oh, and what type of symbolic pay cuts are required from banking executives?
Sorry but I want these jokers to be treated equally... Or allowed to succeed on the virtue of their own accomplishment - just like the rest of us.
Nardelli? He should have just hitchhiked...
OK, I heard a similar theory with bad math a while back, but doing the numbers correctly... If you took our 305 million or so US Citizens and split the 700 billions bailout among them, that work out to around $2300 for every man, woman and child in the USA. Wouldn't that stimulate our economy? Get people buying cars? Keep them from losing their houses and defaulting on mortgages? Better to bail out the weak minded who were susceptible to the sub-prime crack dealers, than the sub-prime crack dealers and auto execs who should know better and are rich beyond most people's wildest dreams...
How is anyone impressed by this gesture? Who cares what they drive, or that they're selling some jets!? These people ran their companies into a massive hole long before the current problems (see GM's debt to suppliers). These tokens are worthless.
Thank you for finally recognizing that the Big Three are not all the same! I grew up in Detroit, and trust me, there has always been a difference between GM and Ford. Ford has a great opportunity to come out of all this a better company - since they were already on the right track before the economic collapse.
The Chevy Malibu Hybrid costs 3,000 less than the Ford Escape. It also has better performance, higher quality, and gets better HWY MPG (34) than that Escape. You should do a little research before calling it a half-hearted attempt. They chose a more cost effective drive train in order to actually be able to sell the vehicle at a competitive price. A hybrid means nothing if it doesn't save the consumer money (unless the person thinks they are saving the environment by hauling 200 lbs of toxic battery waste everywhere they go). I'm not sure that a 30,000 dollar Ford Escape saves you anything.
Hey vankuyk, have you ever owned new american built and new Japanese built? If you had you wouldn't be calling the people who buy Japanese snobs. I tried 5 times to buy "American" built cars(new). Every time, within weeks or even days on 2 models, they're in the shop. I've purchased 4 Japanese built vehicles and had 1 repair for $350 in a total of 340,000 miles. You just do the maintenance and drive them for 250,000 or more miles. If you buy American you have to buy 2 vehicles each time. One to drive while the other one is in the shop! So I guess by your calculations that makes me a snob. It is common knowledge that the people that work in the Japanese factories (whether it's in America or Japan) take more pride in their product than do workers in American factories. And their total hourly compensation is $43 per hour. The UAW workers is $73 per hour.
) take more pride in their product
Consumers have been left with the sour taste of poor quality vehicles for decades. It is build quality, reliability, consistency, etc., not gluttony, that leads us to buy Japanese cars.
vankuyk: The first generation Prius was built in 1997 and released in the US in 2000. The Ford Escape Hybrid was released in 2004.
While talking to my conservative brother-in-law in California this afternoon, I suggested these guys should have flown coach.
He suggested they should have walked.
This comment has been removed by The Daily Beast's editors.
Mr. Berman: I have 2 better symbolic gestures:
1) The Big Three executives should carpool in the Escape hybrid to shoe that they are willing to cooperate to save the industry.
2) The Big Three executives should fly coach to DC like every other exec usually has to do these days and rent a hybrid on arrival just like other cost saving execs would have to do.
If the US wants to solve this supposed crisis for the Big Three, we should adopt the EU standards for fuel efficiency and safety so that the mega MPG cars from Europe and Asia that they produce can compete in the market here. Allow Citroen, Fiat, and the rest access to the US market as well to keep the heat on the Big Three to innovate on higher MPG gas, diesel, fuel cell, and natural gas cars. Mandate that the Big Three adopt just in time manufacturing and lean production workflows that have allowed Toyota to eat their lunch for several years. Simple solution are available for the right price and the stomach for evolution.
Rick Wagoner picked the perfect car to drive to Washington--the Mailbu, a hokum hybrid that nobody is buying because it gets just 2 miles per gallon more than its conventionally-powered siblings.
When Honda's hybrid Civic can deliver 13 MPG more than a standard Civic--a 40-plus percent improvement--the best GM has to offer is a paltry 10 percent gain.
Sorry, Rick, but 10 percent doesn't cut it.
I love driving my 2009 Ford Escape Hybrid Limited with Virginia Clean Special Fuel license plates in the HOV lanes, especially when tailgating behind a Prius. You don't have to drive an ugly foreign car to drive "green".
Thank you.
As a first time user, your comment has been submitted for review. It can take anywhere from a few hours to a day or two for your comment to be reviewed, depending on the time of week and the volume of comments we receive.
Please log in to leave comments.