After that first, humiliating round before Congress, it looks like the automakers have learned a few things: Ford's CEO Alan Mulally promises to work for $1 per year if Ford has to accept government money. What's more, the Ford plan cancels all management employees' 2009 bonuses and merit pay increases for its North American salaried employees. The company also plans to sell its fleet of five corporate aircraft. Similar steps are also promised for the other two automakers. Mulally and GM CEO Rick Wagoner have also announced that they will return to Washington by car this time, rather than by private jet. Chrysler CEO Robert Nardelli will also take a pass on the corporate jet, but his travel plans are secret due to security concerns.
The companies are also looking to swap debt for equity as well as to off-load brands and subsidiaries. GM, for example, is looking at the sale of... [Read Full Article]