The struggles of the auto business are well known, especially the plight of the Big Three domestic automakers. Declines in auto sales, along with the lack of credit available for those who do want to buy a car, has caused automakers to bleed cash while suffering declines on Wall Street, and at dealers. But while those employed by automakers struggle and dealers close their doors left and right, Chrysler reportedly is still paying millions of dollars to executives in bonuses.
Chrysler has recently cut thousands of jobs, and while many are out of work, Chrysler executives still are getting top dollar bonuses that account for about $30 million in all. These bonuses range from about $200,000 to as high as $1.89 million.
Interestingly, Chrysler is perhaps worst off out of the three automakers in Detroit. Each month seems to bring huge losses and decreased market share, and Chrysler seemingly is inching closer and closer to bankruptcy.
While executives get rewarded amid tanking sales, Chrysler, GM, and Ford executives are scheduled to make an appearance before a House of Representatives Committee in support of a proposed $25 billion bailout from the government to keep the automakers in business. Dealers such as Benny Boyd Auto Center have take note of these developments, and have
It certainly weakens the automaker’s argument to push for Federal handouts while executives are getting boat loads of cash. Next week we’ll see if this is going to become an issue when they testify on Capitol Hill.
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More on the Big Three bailbout can be found right here soon.