No more corporate jets for the boys at GM and Ford. Both company’s have recently announced that they are getting rid of all their private jet aircraft and air fleets. The obvious high, and some say unnecessary, costs of running top management  around the country in private jet aircraft made it a perfect candidate for one of the first things to be axed in the restructuring of two of America’s largest auto manufactures.

While it was announced that GM executives will only fly commercial or charter jets from now on, Ford has yet to announce how they will shuffle their executives about the country. One thing is for sure though, they wont be flying coach.

GM in particular had to shut down one of its most historic divisions. The General Motors Air Transportation Services department at GM employed 49 people (who have all been laid off right before Christmas, bummer) and has been in operation since 1948. “It has been a proud history for GM,” said company spokesman Tom Wilkinson.

Ford CEO Allan Mulally took a whole other approach. Calm and speaking in a matter-of-fact type tone he basically stated costs as the main factor for Ford getting rid of its fleet.

“Well, clearly the real message there is we are continuing to analyze all our travel across the corporation and are reducing it in the most cost effective way,” Mulally told Automotive News. “In the future, the business conditions of where we’re going and how we get there and stuff will be determined by the business situation,” he said.

Whatever their reasons the real truth is plain to see. Needless overspending on the part of auto executives who were failing at their jobs could only lead to this. It’s like their being punished, which in a sense is humorous, but the reality of it is it’s horribly embarrassing. Top American auto executives now have to fly commercial because the companies they run have ran out of money.
Source: Automotive News