Chastened auto CEOs beg for billions

WASHINGTON (Reuters) - Having grounded their luxury jets and agreed to work for $1 a year, the heads of the "Big Three" U.S. automakers dropped arrogance for humility on Thursday in a new plea for federal help to survive.

"We're here today because we made mistakes, which we are learning from," General Motors Corp Chairman and CEO Rick Wagoner testified at a hearing of the U.S. Senate Banking Committee.

CEO and President Alan Mulally of Ford Motor Co, a company once synonymous with American industrial might, told the committee: "I have thought a great deal about the concerns you expressed. I want you to know I heard your message loud and clear."

Mocked for coming to congressional hearings last month via private aircraft and without detailed plans to revitalize the nation's stumbling automotive giants, the executives made the 550-mile (885-km) trip from Detroit to Washington this time in hybrid vehicles packed with plans for action.

After being pushed for personal sacrifices, they also agreed to work for $1 a year if lawmakers approve their proposals for a total of $34 billion in emergency government assistance.

The mood in the hearing room was somber as auto executives sought to persuade lawmakers that their survival plans deserved taxpayer financing.

"We're busting our guts" to keep Chrysler alive, said Robert Nardelli, chief executive of Chrysler LLC.

U.S. lawmakers fear that if the auto giants collapse, it would worsen the economy. But many are also reluctant to approve another rescue plan in wake of the $700 billion package they passed for Wall Street in October that generated plenty of voter backlash in the November 4 congressional elections.

Nardelli said Chrysler is "committed to continue our restructuring ... investing in fuel-efficient cars and trucks that people want to buy and beginning repayment of our government loan in 2012."

SWAGGER OVER

The contrition was in sharp contrast to the swagger seen last month when the three seemed to shrug off criticism, particularly about their jets, and rejected suggestions they cut their pay.

Instead in those hearings they spent much of their time boasting about their vehicles despite falling sales amid the deepening U.S. recession and competition from more fuel-efficient, foreign-made cars.

Congress refused last month to provide any relief and demanded instead that the auto giants answer a long list of questions on reorganization plans.

"Until they show us the plan, we cannot show them the money," said Speaker of the U.S. House of Representatives Nancy Pelosi.

At the Thursday's hearing, GM's Wagoner pledged to execute a bankruptcy-like turnaround at the century-old automaker, the world's largest. "It's a blueprint for creating a new General Motors," Wagoner said.

Banking Committee Chairman Christopher Dodd, a Connecticut Democrat, noted the effort made by the auto executives to attend the hearing.

"At least three of our witnesses, maybe more, have driven a long way to be here," Dodd said.

"I wonder if they're going to drive back," said Sen. Richard Shelby, an Alabama Republican who suggested the automakers' fate should be determined by market forces, not government intervention.

"It may depend on what we do here," Dodd said. The auto executives said they did intend to head home by road.

(Additional reporting by Richard Cowan, Editing by Jackie Frank)