Auto Makers To Get Deal

CBS

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a deal to bail out the big three auto makers appears to be getting closer but a CBS News poll shows Americans are evenly split on a bailout 45% approve of a government assistance plan while 44% disapprove CBS News investigative correspondent chyl aison is on Capitol Hill with more chyl good morning good morning Julie this is an emergency plan to basically make sure in the short term that GM survives Christmas and that all of the US automakers make serious progress over the holidays toward Reinventing themselves GM says without help it only has until the end of the month so with the clock ticking toward bankruptcy Congressional negotiators in the White House worked into the night house Speaker Nancy Pelosi says help from taxpayers will require the automakers to get serious about cutting back and restructuring we call this the barber shop everybody's getting a haircut here in terms of the in terms of the uh uh conditions of the bill under congress's plan the automakers could borrow up to $15 billion they would have to develop long-term restructuring plans the plans would be evaluated every 45 days by a carar Andor a board of advisers appointed by the president the automakers would have to submit a detailed restructuring plan to Congress by March 31st if Congress likes what it sees it could pave the way for the automakers to get more taxpayer help but if they aren't up to the task if we don't get the industry stepping up beginning very early on in this process then the money gets cut off and they owe the money back to the American taxpayer as for taxpayer protections there would be oversight and access to company records by the GAO and Inspector General limits on how much pay and bonuses Auto Executives get and something called super seniority which means taxpayers get paid back before anybody else and by the way the companies would have to get rid of their fancy passenger Jets Congress is hoping to get the White House on board with this plan today if Congress is going to help it has to come fast the first evaluation of what kind of progress the automakers are making toward developing long-term restructuring plans would be due under this bill in just about 3 weeks from a carar who hasn't even been appointed yet Julie a lot to be done CBS is Cheryl auson thanks Cheryl [Music]

GM Welcomes Gov't Regulation

CBS

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joining us now from Detroit Robert Lutz Vice chairman of global product development for General Motors Bob good morning good morning we've got about half of the money of the automakers are looking for is it enough well it's certainly enough short term because we do have a very short-term liquidity problem and I think the amount of money that would be allocated to GM under this plan would certainly get us well into the next administration at which point we can discuss what it's really going to take you know a lot of it depends not on what we do but what the general economy does because this this Revenue crisis on the part of the industry has been triggered by the fact that we're looking at the lowest Market since World War II we're from a normal Market above about 17 million a year we're down to 2.10.5 million units if that lasts for quite a long time it's going to take more than a simple restructuring so in simple words what does your business really need to turn around well it needs um it needs a stronger Market we need the economy to recover right now people aren't buying they're worried about their jobs they can't get credit uh and and so that the whole thing is locked up the I will tell you the automobile business in the United States is not viable at the current level so it's going to take not only some temporary help from the federal government but it's also going to take uh the federal government undertaking the steps necessary to get our economy back on track free up the credit and get people buying cars again hard to keep a sustainable business if people in America have just actually stopped buying cars which is the case right now does does this loan and all that comes with it does Detroit need a cars are well whether we need it or not I think it's reasonable that when the federal government steps in with taxpayer money uh they're not going to they're not going to lend us the money and uh just say do the best you can with it uh and uh tell us when you need more obviously there's going to be some kind of oversight and I think that's a reasonable thing to expect I would hope however that it is someone with a knowledge of the industry who knows what's going on who realizes what our Capital needs are who realize the pressures that this industry is under uh to meet all kinds of regulations whether it's Federal Regulations or California regulations I actually welcome it I I think having the federal government see our problems and our challenges from the inside is a very good thing all right Robert Lutz from Detroit this morning thank you very much for your time sir sure thank you all right excuse me thanks Harry also in Detroit this morning is Ron gettlefinger president of the United Auto Workers Ron good morning to you good morning morning Maggie how are you I'm fine thank you I'm wondering if you have any reservations about having a Car Czar oversee the restructuring of these companies and would you consider that person sort of your new boss well I don't know that they would be considered a new boss but I think that's going to come with the plan and we have absolutely no problem with that we've been saying that all along everyone has made concessions in order for this deal to go through and that includes your union but now the UAW is is requesting a seat on GM's board as a condition of further concessions some would say that that's exploiting a weak and desperate company well I'm not sure where that information is coming from because we have not really entered into any negotiations at this point in time so you do not want a seat on GM's board is that what you're saying I did not say that we didn't want it I'm not I'm not sure just exactly how this is going to unfold certainly we made a lot of concessions in o5 we made much more in 07 and then just last week we made additional concessions so when we go into these discussions we look for all stakeholders to be there and at that point in time we'll make decisions on what it is we should or shouldn't do but if we're going to be asked to give up more and it appears that we are then we should have some inequity stake in the company do you feel that you have given up enough uh I think what we have given up is dramatic and I think uh the the agreement No7 was hailed as a transformational agreement by everybody in the industry and and most analysts outside of the industry so uh to say that we've given up enough I would like to think that we have but I'm realistic enough to know that more is going to be required and the membership the leadership of our Union is prepared to step up and do whatever it is that we have to do to maintain a viable business in this area if you're asked to give up more why would you deserve an equity stake in the company why wouldn't you happily make the concessions that everyone else is making to save the Auto industry well I'm not sure the concessions that anyone has made up to this point in time I know that board of directors are going to have to be involved in this management suppliers dealers creditors stakeholders and I like to think of it this way we're already on third base the other stakeholders have not even come to the ballpark yet so I just think we have to be realistic here and get everybody to the table no one to my knowledge is making sessions could could you tell me what the creditors have done for instance I know of nothing at this point all right Ron gettlefinger thank you for your time gosh foreign

Big Three Wait For Big Bailout

CBS

Transcript

the auto bailout bill could go up for a Congressional vote tomorrow negotiators worked well into the night addressing White House concerns that automakers may not survive a possible long recession even if they get $15 billion in loans automakers say the rescue plan is necessary because both GM and Chrysler could run out of money by the end of the month but any cash will come with strings a carar will oversee industry restructuring and Congressional leaders are in insisting on concessions for managers unions and creditors we call this the barber shop everybody's getting a haircut here in terms of the in terms of the uh uh conditions of the bill and while it appears lawmakers will soon vote on a bailout proposal there's no certainty it will pass many Republicans are hesitant to give massive amounts of money to the car makers they blame the Detroit companies for failing to innovate and for creating their own problems with Decades of mismanagement GM is even acknowledging it shortfalls in a new advertisement admitting it betrayed American consumers by letting quality fall below industry standards Tara merger for CBS News Washington