The Big Three - Round Two

I just heard on the news this morning that the CEOs of the Big Three automakers have submitted their plans to Congress as to how they will use our hard earned $25 billion in government money.

I had to laugh at their first trip to Congress. I thought to myself if I, as a business owner, had approached a bank for a loan for my business without any kind of plan as to how the loan would be used and whether and when I would be able to pay the bank back, I'd be laughed out of the bank. I mean, if this is any indication of these CEOs business acumen, we should all be very afraid of lending them our money.

I understand that this time around there will be no dramatic flying in on corporate jets. Reportedly, the CEO of Ford has decided to forgo the corporate jet this time around and drive to Washington in a Ford Hybrid. No word on how the other two CEOs will travel to Washington, but I can guarantee you it won't be via corporate jet.

I've head stories of union concessions, paring down of product lines, CEO pay being reduced to $1 per year (I wonder if that includes bonuses?), yada, yada, yada.

However, the Big Three are burning through cash at a rate of almost $5 billion per month. If they are asking for loans in the neighborhood of $25 billion, you can do the math to figure out when they will be back to Congress again with hat in hand. At that rate, I'm afraid that any changes they are willing to make will not show the financial results quickly enough to allow this loan to do them much good.

This Thursday is when the Big Three CEOs are scheduled to testify before Congress again. Fasten your seatbelts because it is sure to be a bumpy ride.