Big Three CEOs Ready Game Plan

Updated from Tuesday, Dec. 2

The reception for the heads of General Motors(GM), Ford (F) and Chrysler may be better when they return to face Congress on Thursday, two weeks after the collapse of their first failed bid for a $25 billion industry bailout.

That's because changes have come in three critical areas. For starters, auto sales continued their dizzying drop in November. GM reported that its sales fell by 41%. Ford said sales slumped 31%, while at Toyota (TM), sales slid 34%. Overall industry sales sank about 35% during the month, Ford estimated.

"Every manufacturer is posting awful numbers, and we are no exception," said Mark LaNeve, vice president, GM North America vehicle sales, in a prepared statement. "The consumer is scared and sitting on the sideline."

Next, auto executives have cleaned up their acts. They made a bad impression on Congress last time, flying to Washington in separate corporate jets, declining to consider cuts in their salaries and proving stingy with the information.

On Tuesday, GM CEO Rick Wagoner and Ford CEO Alan Mullaly headed across Ohio on their way to Washington, driving hybrid vehicles produced by their companies. Both have offered to accept annual salaries of $1 if their companies secure government loans. And both GM and Ford said Tuesday that they will unload their corporate jets.

Finally, the companies were providing detailed business plans to lawmakers. Ford said it wants a temporary $9 billion bridge loan from the federal government only if the economic crisis worsens or if a major competitor declares bankruptcy. In that event, Mullaly's salary would fall to $1, down from $21.7 million in 2007. Ford said it "hopes to complete its transformation without accessing the loan."