Big Three Bailout Gets Wheels

Well it looks like the basic agreement on a auto bailout is in place. Under the deal automakers will receive approximately $15 billion in loans to solve their cash flow problems. In return for the money auto makers must agree to certain terms and overhaul themselves. If  companies fail to live up to their commitments the money would be recalled.

With the CEO’s  of Chrysler and Ford basically saying they will work for $1 a year if the receive any government money in attempt to curb pay. It should be noted this does not include stock options. The move is similar to that of Lee Iacocca who worked for $1 as CEO of Chrysler and made money on stock options only if the company turned things around. Lee Iacocca help save Chrysler around in 1979 and paid the government.