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Big 3 Would Agree to Oversight if Bailed Out

CEOs admit bad management

By Nick McMaster,  Newser Staff

Posted Dec 4, 2008 1:07 PM CST

(Newser) – Detroit’s Big Three automakers would accept federal oversight in return for financial support, the Wall Street Journal reports. The chiefs of GM, Ford, and Chrysler all said that they would accept a bailout styled after that of Chrysler in the late ‘70s, which put the firm under the supervision of a federal agency.

The CEOs admitted they’d come to last month’s congressional hearings unprepared, and presented detailed plans for using the government’s money to make their companies profitable again. They also admitted mistakes in their management: "It's no secret that GM has struggled in the face of increased competition from foreign manufacturers with lower wage, health care and benefit costs," Rick Wagoner told the committee.

From left, GM CEO Richard Wagoner, UAW President Ron Gettelfinger, Ford CEO Alan Mulally, and Chrysler CEO Robert Nardelli, listen to testimony on Capitol Hill in Washington, Thursday, Dec. 4, 2008.
From left, GM CEO Richard Wagoner, UAW President Ron Gettelfinger, Ford CEO Alan Mulally, and Chrysler CEO Robert Nardelli, listen to testimony on Capitol Hill in Washington, Thursday, Dec. 4, 2008.   (AP Photo/Gerald Herbert)
Sen. Chris Dodd, D-Conn., speaks to reporters at the conclusion of a hearing on the state of the U.S. automotive industry on Capitol Hill in Washington, Tuesday, Nov. 18, 2008.
Sen. Chris Dodd, D-Conn., speaks to reporters at the conclusion of a hearing on the state of the U.S. automotive industry on Capitol Hill in Washington, Tuesday, Nov. 18, 2008.   (AP Photo/Manuel Balce Ceneta)
From left, GM CEO Richard Wagoner, UAW President Ron Gettelfinger, Ford CEO Alan Mulally, and Chrysler CEO Robert Nardelli, listen to testimony on Capitol Hill in Washington, Thursday, Dec. 4, 2008.
From left, GM CEO Richard Wagoner, UAW President Ron Gettelfinger, Ford CEO Alan Mulally, and Chrysler CEO Robert Nardelli, listen to testimony on Capitol Hill in Washington, Thursday, Dec. 4, 2008.   (AP Photo/Susan Walsh)
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COMMENTS
Showing 1 of 1 comment
Guest
Dec 4, 2008 3:11 AM CST
FIND OUT HOW MANY OF THESE LOYAL UNION AUTOWORKERS BUY THEIR OWN PRODUCT, I worked as a suppliers rep. in various auto plants, in the past.. 30% of parking lots were Japanese brands... And they want us to pay their wages?????

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