Automakers pitch Congress anew on rescue
"We made mistakes, which we're learning from," General Motors chief executive Rick Wagoner told the Senate Banking Committee.
Ford CEO Alan Mulally also acknowledged big mistakes, saying his company's mantra once was "You build it, they will come."
"We produced more vehicles than our customers wanted, then slashed prices," he said. But as a result of these past mistakes, "we are really focused," he said.
The Big Three executives made the trip from Detroit in new-model hybrid autos made by their respective companies, two weeks after a botched appeal for $25 billion in which they were chided for flying on private jets to beg for money.
Chrysler CEO Bob Nardelli promised that his company, recipient of a previous government-subsidized rescue loan in the 1970s that it repaid, would repay taxpayers by 2012 and would devote itself to manufacturing "fuel-efficient cars and trucks that people want to buy."
Sen. Richard Shelby of Alabama, the senior Republican on the panel, complained that the pricetag on the package had jumped since the trio last appeared just two weeks ago
Banking Committee Chairman Chris Dodd, D-Conn., who supports helping the industry, said detailed plans submitted earlier this week by the three auto companies on how they would use low-cost federal loans to reorganize still left a lot of questions unanswered.
Still, Dodd said, the economic news has become even more bleak since the auto executives appeared before Congress in late November.
"In just two weeks time, the clouds on the economic horizon have grown even darker and greater in number," Dodd said, noting that the U.S. economy has now been declared official in a recession that began a full year ago.
Dodd said doing nothing and allowing one or all three of the companies fail, as some lawmakers have advocated, "plays Russian roulette with the entire economy of the United States."
Recent comments
This is a tough one! The Big 3 have mismanaged their companies for...
BG | Dec. 4, 2008 at 10:16 p.m.
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Richard Wagoner Jr., Chairman and CEO of General Motors, left, arrives in a prototype electric vehicle for a Senate hearing with Rep. Sander Levin (D-MI) Thursday in Washington, D.C. Top executives from the three major U.S. automakers are scheduled to appear before members of the Senate today to discuss proposed bailout legislation for their industry.
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