As the Detroit 3 fight to win congressional approval for a $25 billion dollar federal loan program, Ford Motor Company CEO Alan Mulally has significantly upped the ante by voluntarily reducing his own annual salary to $1. In the past, Washington’s reluctance to grant the Detroit 3 emergency assistance was largely due to the seemingly lavish lifestyles the executives managed to maintain even with their respective companies on the brink of collapse (lest their be any confusion, here I am attempting to allude specifically to Rick Wagoner). Although Mulally’s quick-thinking decision a few years ago to mortgage the majority of Ford’s assets and secure about $38 billion in credit has, in theory, provided Ford with enough cash reserve to weather the worst of the financial storm, Mulally has admitted that the welfare of his Detroit brethren is just as important to Ford’s future as his own.
Thus, despite Ford’s clear advantage over the competition, Mulally joined both Wagoner (GM) and Nardelli (Chrysler) in actively soliciting Congress for aid, the results of which will come to fruition this week as the Big 3 testify before a congressional panel. Previously, Mulally had expressed a willingness to limit executive benefits in order to fulfill the terms of a federal loan, but by offering to voluntarily stymie his salary without government intervention, Mulally hopes to assure Congress of his, and Detroit’s, dedication to their respective company’s survival.
Photo Cred: MotorTrend