path, not just the easy path. there is one rule that lies at the heart of every religion. that we do unto others as we would have them do unto us. [applause] this truth transcends nations and peoples, a belief that is not new, black, white, brown, christian, or muslim, or jewish, it is a belief that pulsed in the heart of civilization and in hearts around the world. it is a faith in other people. it is what brought me here today. we have the power to make the

world we seek, but only if we have the courage to make a new beginning keeping in mind what has been written. the holy koran tells us oh, mankind, we have created you, male and female, and we have made you into nations and tribes that you may know one another. the talmud tells us that the whole of the torah is for the purpose of promoting peace. the holy bible tells us that blessed are the peacemakers for they shall be called sons of god. [applause] the people of the world can live

together in peace. we know that is god's vision. now that must be our work here on earth. thank you, and may god's peace be upon you. thank you. [applause] [chanting obama]

>> a coverage of general motors bankruptcy begins with remarks on president obama a bailout general motors' future and a statement from the ceo fritz henderson. a little later, a hearing on the closing of dealerships with remarks from the ceo of general motors and the president of chrysler. tonight on "q &a" a talk with governor mitch daniels who worked under president george w. bush and was a senior advisor to president reagan.

at 8:00 p.m. eastern here on c- span. >> how is c-span funded? >> private donations? >> i do not really know. >> from public television? >> the nation's? >> federal league? >> how is c-span funded? 30 years ago america's cable companies created id as a private business initiative, no government mandate or money. >> this past monday general motors filed for chapter 11. it is the largest such filing ever in the manufacturing sector. now the president's statement on its future. it is about 15 minutes. >> good morning. just over two months ago i spoke with you in the same spot about the challenges to the auto industry and i laid out what needed to be done to save two of

america's most historic autumn makers, general motors and chrysler. they were facing a crisis decades in the making and having relied on loans from the previous administration and were asking for more. from the beginning i made it clear that i would not put any more tax dollars on the line if it meant perpetuating the bad business decisions that had led these companies to seek help in the first place. i refuse to let these become permanent wards of the state, kept afloat on an endless supply of taxpayer money. in other words, i refused to kick the can down the road. but i also recognize the importance of a viable auto industry for the well-being of families and communities across our industrial midwest and across the united states. in the midst of a deeper recession and financial crisis the collapse of these companies would have been devastating for

countless americans and done enormous damage to our economy, beyond the auto industry. it was also clear that if gm and chrysler ready-made andre-told themselves for the 20th century would be good for american workers and manufacturing -- re- made and re-tooled each other it would be good for us. if the companies were willing to sacrifice for their companies' success and take the difficult but necessary steps to make themselves stronger and more competitive, then the united states government would stand behind them. the original restructuring plan submitted earlier this year did not call for the sweeping changes these companies needed in order to survive and i could not proceed in good timgood cone on the basis.

we put them on a path for long- term viability. the 60 days that gm had to submit its plan have now lapsed and i want to say a few words about where we are and what steps will be taken. before i do that 01 to give you an update on where things stand with chrysler. -- i want to give you an update. when my administration took office and went over chrysler's books its future was uncertain. it was not clear whether it had any future at all. but after consulting with my auto task force, industry experts, and financial advisers and after asking many tough questions i became convinced that if chrysler were willing to undergo a restructuring and if it were able to form a partnership with a viable global car company, then chrysler could get a new lease on life. well, the more promising scenario has now come to pass. today after taking a number of

painful steps and moving through quick, efficient, and fear bankruptcy process a new, stronger chrysler is poised to complete its alliance with fiat. just 31 days after chrysler's chapter 11 bankruptcy filing the court has approved the chrysler- fiat alliance, paving the way for new crescent to emerge in the next few days. -- for a new chrysler to emerge. what happens next is in the hands of managers and workers. with the completion would mean is that tens of thousands of jobs that would have been lost if chrysler had liquidated will now be saved. the consumers have no reason to worry about a restructuring, even one as painful as what chrysler under when. many experts said that a quick, surgical bankruptcy was impossible. -- even what chrysler underwent. they were wrong.

some said it would lead to an immediate collapse in consumer confidence. they were also wrong. in fact, chrysler sold more cars in may than in april. the was partly because consumers were comforted by our commitment to stand behind a quick bankruptcy process. it is a dramatic -- an outcome dramatically better than what appeared likely. the situation actinometers was different from that of chrysler's, largely because gm is a different kind of company. it is much larger and more complex. it has operations all over the globe. the management team of gm including its new ceo, fritz henderson, its interim manager, and all their colleagues have worked tirelessly to produce a plan that meets the strict standards i laid out at the beginning to streamline their brands, clean up the balance

sheet, and it possible for gm to compete and succeed. working with my auto task force gm and it's the colors have produced a viable, achievable plan that will give this iconic american company a chance to rise again. it is a plan tailored to the realities of today's other market, the positions gm to move towards profitability even if it takes longer than expected to fully recover in this economy. and it builds on the recent progress in making better cars. this will have gm building a larger share of its cars your home, including fuel-efficient cars. if all goes according to plan the share of gm cars sold in the u.s. made here will actually grow for the first time in three decades. now any time a business as large as general motors goes through a restructuring it is extremely difficult to find common ground

among all the company's stakeholders. while the deal worked out is tough it is also fair. it will require the united autoworkers to make further cuts in compensation and retiree health-care benefits, painful sacrifices on top of all they have already done. it will require at gm's shareholders to give up the remaining values of their shares just as they would have had to do in any private restructuring. it will also provide unsecured bondholders with an equitable of come recovering more than the current value of their claims and substantially more than they would have recovered if the government had not intervened and gm have liquidated. that is why a majority of gm's bondholders already support this deal. throughout this process i wanted to ensure that none of gm's sticklers receive special treatment because of our government involvement. that is why i answer to the task

force to treat all shareholders fairly and ensure that this restructuring was carried out in a way consistent with past precedent -- and it was. we have an incredible plan full of promise. gm cannot put into effect on its own. executing it will require a substantial amount of money that only government can provide. considering its expensive operations within its borders the governments of canada and ontario have agreed to do their part with an investment in the future and i want to thank them for doing so. i also want to thank the government of germany for working to reach a memorandum of understanding on the sale of a major stake in gm's european division and for providing interim funding to make it possible for the transaction to be finalized. of course gm is an american company with tens of thousands of employees in this country.

responsibility for its future ultimately rests on us. that is why our government will make a significant additional investment of about $30 billion in gm. one that will entitle american taxpayers to ownership of about 60% of the new gm. let me talk about this -- i recognize that this may give some americans pause. hamas may explain it as clearly as possible while we're making this investment -- but let me explain it clearly. we inherited a financial crisis unlike any we have seen in our time. in has crippled private capital markets. we would not have otherwise even considered such steps. these steps have put our government in the unwelcome position for the simple and compelling reason that the survival and success of our

overall economy depend on it. we're making these investments not because i want to spend the american people's tax dollars because i want to protect them. instead of taking so much stock in june we could have offered the company more loans. but for years gm has been buried under an unsustainable mountain of debts and pauline more debt on top of the new gm would it mean repeating the mistakes of the past. we are acting as a reluctant shareholders as a result because that is the only way to help gm succeed. what we're not doing, what i have no interest in doing is running gm. gm will be run by a private board of directors and management team with a track record in american manufacturing the reflects a commitment to innovation and quality. there will call the shots about

how to turn around the company. the government will refrain from decisions and all but the most fundamental of corporate decisions. when a difficult decision must be made on where to open a new plan or what type of car to make the new gm, not the government, will make that decision. our goal is to get gm back on its feet, take a hands-off the purchase, and get out quickly. exiting requires not only new investment by giving gm a chance to start by clearing away the massive past debts weighing down the company. that is why earlier today gm did what chrysler has successfully done and filed for chapter 11 bankruptcy with the support of its key stakeholders and at the u.s. government. in all likelihood this process will take more time for gm than it did for chrysler because gm is a bigger, more complex company. chrysler's extraordinary success

reaffirms my confidence that gm will emerge quickly. and as a stronger, more competitive company. i want to remind everyone that if you're considering buying a gm car during this time of restructuring your warranties will be safe and a government- backed. i am confident the steps i am announcing today will mark the end a neof an old gm and the beginning of a new gym, one that can lead america towards an energy-independent feature and is a symbol of america's success once more. but building a leaner gm will come at a cost. it will take a painful toll on many americans who have relied on general motors throughout the generations. i want to su were directly to all the men and women watching today wondering what all this will mean as far as all their lives are concerned.

i know that you have already seen more than your fair share of hard times. we saw 400,000 jobs lost in the auto industry in the year before this restructuring even began. i will not pretend the hard times are over. difficult days lie ahead. more jobs will be lost, more plants will close, more dealerships will shut their doors, and so will many parts suppliers. but i want you to know that what you're doing is making a sacrifice for the next generation, a a sacrifice she may not have chosen to make but one u.n. of less call to make so that your children and ours can grow up in an america that still makes things, still strives for a better future. as our workers and communities passed through these difficult times we as a nation must do airport. so i appointed in march and montgomery, director of the recovery for all two communities and workers. he announced a green jobs

training program for workers and those hard-hit communities. my small business administration chief travel to indiindia last week to announce new loans. -- traveled to indiana. it will give the industry boost a time when it needs one. i'm calling on congress to pass fleet modernization legislation to provide a credit to consumers who turn in old cars and purchase cleaner, more fuel- efficient new cars in a these are important steps to overcome a problem that did not happen overnight and will not be solved overnight. i recognize that today's news carries importance because it is not any company we're talking about. it is gm, the company that has not only been a source of income, but pride for generations. while the gm of the future will be different from that of the

past i am confident that if well-managed a new gm will emerge to provide a new generation of americans with a chance to live out their dreams that can out-compete automakers around the world and once again be an integral part of america's economic future. when that happens we can truly say that what is good for general motors and all who work there is good for the united states of america. thank you, everybody. >> shortly after the president's remarks fritz henderson held a news conference at gm headquarters in new york. this is just over 10 minutes. this press conference and a lot of people are probably saying, we heard this from general motors in the past. we heard about the plant closings an restructurings, there is a new day for gm. how should the american public look at this today and say, we have confidence that this is the -- finally, gm is getting it

right. how can you convince people that this is the last time gm will have to restruct ture? >> well, i'll say at the beginning, that the only way to convince people is to produce results. let me at least try to answer your question sitting here today. if i think about this business, and being successful in the business , never been a successful turn around done in the automotive business in its history without having success on both the product and revenue side of the business, and getting your cost right. nobody ever gets to do a turnaround with one or the other, gets to do both. if we think about the situation that we found ourselves in, the work done on restructuring the business, the work that has been done and the work that we have done recently with our partners aand the sacrifices that are being made, we find ourselves in a position that we feel confident that we are competitive. we will be the second is, the impact on our balance sheet, the leverage, and

the various clans on the company were just untenable. we are solving the problem. we're getting the issues and operations behind us, getting those on the balance sheet behind us so that the leadership team can spend the time where it needs to which is on products and customers. a share of time in a date is extremely important for leadership group. this allows us to permanently address problems we have not been able to until today. we can say that when we exit this process and of the new gm comes forward we will have taken some of these historic problems and address them permanently so we can spend our time where we should -- products, customers, reinventing the technology. then we have to prove the investment and sacrifices are worth it. i think there is a very different approach and one that

addresses some of these traditional, chronic problems permanently. frankly, it will free us up to do what we need to do in order to win. >> hello, i am from the "new york times." your the first chief executive having had to file for chapter 11 protection. you have a new chairman of the you already know him, kent. you also have a chief restructuring officer. well will this mean to your role running general motors? everyone has emphasized that the government will stay out, but your role has changed. how do you view that? >> there is a painting it as i came up from our offices of alfred sloane. i see paintings in our building

in detroit and ask myself what he would do if in my shoes. he never was. but at the beginning of general motors there was a crisis. he did his job. he led the company through it. if you were sitting here today i imagine he would tell me to do my job. if i look at what my job is, yes, we have an interim chairman, kent. i am a believer in separating the chairman's role from the ceos role. i have my handful without running the board of directors. so i am very appreciative. working for kent is a pleasure and working for the board has been a pleasure. they are very hard-working. you heard the president. the only thing i can tell you is that the automotive task force has been rigorous in analysis but with no real interest in running our business. they told us we need to run our

own business and they should hold us accountable. i am fine with that. i could not ask for a better environment. yes, it is different. but leaders in the past of general motors would do the same thing to leave the company through this situation. in terms of change of governments, i am confident it will work out fine. >> to the back row. >> from cnn. the previous ceo said the bankruptcy had not been an option and was concerned about losing market shares. can you put that into the context of your target of being profitable if auto sales are just at 10 million units per year? >> there is a three or four-part question in there. first, when i look at the situation in the market today and the the possibility of

losing market share and the possible erosion through bankruptcy, the most important thing is to move fast. speed is of the essence. i can assure you we have gotten ourselves ready. the 363 process and the tools that come with that rigid we're quite confident we can move fast. there are always risks, but i'm talking about pure, unadulterated speed. the process is driven by a court-supervised process, but with the team of professionals we have a i am confident we will face it and move through fast. we are open for business today. we're providing customers outstanding products. gmac is providing customers financing businesses, retail and wholesale financing. i feel very good about it.

thirdly, we are planning to run our business and we have a series of processes for today that will allow us to run our business as usual. mix of the bill the of the bankruptcy process -- if one steps back to look to the broad picture of what is being accomplished here in terms of restructuring and the balance sheet, it is a remarkable opportunity to address both the competitive issues and the significant excess leverage we have on the balance sheet. in the and this was the best tool to address both of those and do it thoughtfully. yes, we are concerned about the impact on air sales in bankruptcy. we're doing everything we possibly can. we are in business, servicing customers, we are in the market

without standing offers, and we have great products to sell. that is what we will be doing. in the meantime we will move fast through bankruptcy. >> we will take three more in the room on this side and in the two funds. >> i'm with the fox business network. hypothetically, if a large shareholder being the government recommends to you, we want you to make car x and you and your management team think that car y makes more sense -- how you handle that situation? secondly, what is a reasonable time to expect the government to exit the status of majority shareholder? >> first, to answer your question i do not think it will happen. the government and president obama has been quite clear that he wants to a world-class board of directors in place. they only want to be involved in the most corps of governance issues which would not include

what we do a next generation cooper or sedan. ok? so, we will not see that situation. i am very confident. we have not even seen that for the task force process. it has been how to get the business restructured. >> do you think the government might exit that status? >> the government of the u.s., canada, and ontario, as well as the viba trust have an interest in selling down, creating a market for gm shares, in an orderly fashion. they have communicated that clearly to us. the will be some time to get ready for that, but let's face it -- this is a substantial block of shares and it is a question of years, not months. it is more appropriately addressed to the treasury, your question. but having gm in private hands

asap, by getting a return for taxpayers. >> over on the four said. >> is john heading back there? >> fritz henderson, a lot of concern about the future of gm in terms of losing market share. same old story, you could be back to restructuring. what is the plan to stabilize u.s. market share? you had pleaded to u.s. consumers at the beginning to give you another chance. is this the right time to rethink the way you have approached the market? give some texture on how those things will change. the market share story at gm those have a silver lining. >> the last 60 or 90 days has been hectic. we have been intensely focused on getting issues behind us. the approach we're taking -- i will focus my attention on the u.s. market