Ford, GM, Chrysler Ask Congress for Money, Not Advice

The Detroit 3 spent a lot of their precious time on Capital Hill this week spreading a message that amounts to, “We don’t need your advice, just your money.”

General Motors submitted a presentation to Congress with a strong subtext about what a swell job the current management is doing. In fact, under Chairman and CEO Rick Wagoner, the company said GM is building “the best cars in its U.S. history.”

Alan Mulally, Ford president and CEO, patted himself on the back even more warmly, telling the Senate Banking Committee on Nov. 18: “At Ford Motor Co., we remain committed to constant examination and response as we face new challenges.

“With each of those challenges, however, I become more convinced than ever that we have the right plan to transform Ford and that our best days are ahead of us. The reality is that Ford is well on our way to realizing a complete transformation of our company – building a Ford that has a very bright future,” he said.

At least Chrysler Chairman and CEO Robert Nardelli sensibly dwelled on the bad things that will happen to the U.S. economy if Chrysler doesn’t get government support. The other guys did, too, but Nardelli did a better job of reminding Congress that these bad things will happen to ordinary Americans.

“Therefore without immediate bridge financing support, Chrysler’s liquidity could fall below the level necessary to sustain operations in the ordinary course. This would put at risk health care coverage for retirees, which is part of Chrysler’s nearly $20 billion total health care obligation, $2 billion in annual pension payments to our retirees and surviving spouses, approximately $7 billion in current payables, $35 billion in future annual supplier business, and 56,600 direct Chrysler employees earning $6 billion wages,” said Nardelli.

Nardelli also allowed as how privately held parent Cerberus would go along with “full financial transparency, and welcome the government as a stakeholder – including as an equity holder.” That’s not much of a concession under the circumstances, but needed to be said.

However, Nardelli, too, indulges in telling senators how he, Nardelli, had it handled, at least until the credit crisis came along. Nardelli says he realized when he first joined the auto industry, just last year, that the industry needed to be restructured and “transformed.”

All three sounded like the football coach who says his team didn’t really lose the game, they just ran out of time. If this lame duck Congress approves a bailout – which looks doubtful – it won’t be because of performances like this.