promise of this recovery act. i would suggest to them that they talk to the companies to because of this plan scrapped the idea of laying off more employees and decided to hire employees. tell that to the americans to receive an unexpected call saying come back to work. tell that to the americans who are poised to benefit from critical investments into this plan for our prosperity. in the end, that is the only measure of progress. that is whether or not the american people are seeing progress in their own lives. we have seen some stabilizing in the financial markets, credit spreads have gone down, a reduction in the fear that gripped the market just a few months ago. . .

>> i am grateful to you joe, for your leadership. and thank you all for what you are doing. and now get into the nitty griddy of how this will happen. press, thank you. >> a couple of programming notes for you. house and senate republicans will hold a fund-raising dinner for their campaigning leaders.

we will hear from speakers. our live coverage gets underway at 7:30 eastern on c-span 3. and later we will see dennis blair of national intelligence director, at 8:45 p.m. on c-span 2. now a conversation about federal assistance for the u.s. auto industry, from today's washington journal, this runs 35 minutes. >> currently we have the president and c.e.o. of the auto industry manufacturers, we have the story about chrysler sale has one last hurdle. what can you tell us about what

these dealers have tried to do, appealed to the supreme court? >> the pension funds in indiana have gone to the supreme court. that's out of the bankruptcy decision. there was a hearing last week in the senate that dealt with impending closure of the dealer network. there are two separate issues there. and i assume you are talking about the senate approach? >> yeah. >> well, the hearing there, obviously dealers are very vital and important part of the industry and part of the family. and it's really difficult seeing some of these choices that particularly chrysler and g.m. are having to make with their restructuring through the bankruptcy process. but at the end the day, both

companies will be stronger. host: how do you feel that g.m. and chrysler have responded over the deals, with the machinery and etc., they are responsible for. guest: let's clear in both restructurings, the manufacturer had to make tough decisions. and all stakeholders are participating in that plan. it's what they negotiated in the administration and what they went into bankruptcy protection for. to come out of there. as far as their individual relationships that's something that the companies have to manage. it's clear in many respects toyota has become the model and standard for a number of things. and their dealer network is one that both g.m. and ford and also chrysler and other companies are looking at the

kind of service they want to provide. host: you have an organization with all auto manufacturers, domestic and foreign. when you look down the road of the future, what automobile sales and not only models but what is happy -- what is ahead for the american buying public? >> a great industry, what we see today is historic low. with the credit crunch and the recession in this session. it hit the auto manufacturers hard. and in home prices over the years, had an impact over the auto industry, that's the biggest purchase that people make. the sales fell to what is now

9.5. i think we is seen the bottom and i think it's bouncing back. and all the companies have gone through this. they are looking at reinventing the automobile, and providing a lot of new technology. you will see a technology revolution occur. not just in electrication and hybrids but in diesel and other engines themselves. host: what sort of data does your organization have in what customers are looking for, once they are able to and the economy bounces back. and how much pent-up ability is there for this economy? guest: i think there is a lot from the recovery and there will be pent-up demand. and i think that congress is looking to provide incentives for consumers. there is a bill in the house

today or tonight, called fleet monitorization. more widely known as cash clunkers, that's a $4 million program that has passed. host: what would it do? guest: it would provide $4,500 for vouchers for turning in less fuel efficient vehicles for newer vehicles that are safer and cleaner and more fuel efficient. those vouchers i think would be a big incentive for consumers to come back to the marketplace. host: it's $4,500 from the government on top of anything? guest: that's right. host: you may get trade-ins? guest: on the clunkers part, if it's an older vehicle, the

value of that older vehicle would be turned in. and there are incentives that manufacturers are providing for new buyers. and again the choices are incredible now. host: david is with us and we have our first caller. caller: how are you doing, thank you for taking my call. i have two questions, like with all the closings of the factories and plants. are the prices going to come from [inaudible] down to the united states at a cheaper price? guest: i didn't hear. host: will the cars come from china in a cheaper price? guest: china is reentering the market and from the industry you will see wider models.

general motors will focus on four core brands and ford has introduced taurus and others. all the brands are providing an incredible value for the vehicles. the chinese have yet to enter the market. hummer, sold by general motors is going to be approved by a chinese firm. but that's not what they see in the firm. host: what do you know about this chinese firm? guest: nothing, it's heavy manufacturer market, and they are entering the market from upper end than those from smaller vehicles. there will be outplacement of some vehicles. chrysler is trying to marry up

with fiat. i think you will see a lot of small, fuel efficient vehicles in the market. but they will make them in u.s. as well. host: a viewer wrote about hummers, they were used in the military and is that a good idea to sell to china? but the hummer is not made by the military. guest: that's separate, g.m. had the rights to the hummer brand. and the h-1 is discontinued. so these are smaller versions. host: round rock, texas, good morning. caller: good morning, i have a chrysler now and i am unemployed and i tried to get them to go down on my payments so i can afford to make my payments. they don't want to listen to me.

why should i want to give money to chrysler and chevrolet, because you have to have more money to put down a down payment. i am for the u.s. cars, but why should i help them if they don't want to help me? people aren't talking about this, but people need to call in about how they are treating people that are laid off. host: how much are you paying? caller: i have a 2006 durango and paying $270. host: thanks for the call. guest: now they have funds that gmac controls both of those, and that's something that consumers have to deal with finance arms on.

host: he talked about chrysler and the company and market are talking about the times to foil the fiat deal, what does that deal mean for them? guest: it's an interesting partnership. fiat is popular in europe and has a number of models on the smaller, fuel-efficient end. and they have cars that used to be in the u.s. market. they haven't been in the market for a while. the question is how long it takes for them to bring the vehicles into the u.s. market and what kind of platforms they will introduce. but i think there is technology there that chrysler feel they can benefit. host: to chicago we go, this is our independent line, welcome. caller: yes, i would like to say that americans need to learn more about european vehicles.

almost everyone is building the diesel vehicles that are getting more mile acknowledge. -- mileage. and americans are brain-dead about this. and in the united states they had a special program where they all developed diesel-electric cars and when bush got in, they were shoved under the rug. host: you talked about diesel. guest: i am a fan of diesel, and the caller is correct, that diesel in europe is more widely used and it's taxed less in europe. and when diesel have a price differential you see consumers respond to that.

and it's a point. host: is there intermissions with diesel? guest: no, it took a while to meet the california standards. that's an issue that we are addressing. the diesel is being introduced. there was a conception in 80's that american diesel is not what it is today. it's different engines and the emissions and good. and the torque is there and hybrid variation you could see tremendous improvements. host: on the fuel standards, the president recently announced they are ramping up the mileage and timetable for this. what is your organization's view of these policy changes? guest: we welcome it, we went to the administration and encouraged them on an obama

standard. we had three standards, that the industry dealt. on supreme courts they entered the emissions and california and other parts of the united states have a third set of standards. it's important that we harmonize those. and we approached the administration and let's get to the table and work this out and they did. host: and your organization was at that table? guest: yes, we were as the individual companies. they worked closely with the industries and state and pulled these stakeholders together. so you can bridge these differences. host: fort wayne, new jersey. go ahead on democratic line.

caller: it's fort lee, new jersey. i have a ford fiesta, 1988, my friend gave to me because he couldn't get anything on the trade-in. and he gave it to me and i have been driving it for four to five years, and i get 49 miles to the gallon. that's a 1988 ford. i don't understand why there is difficulty to have new cars get good mileage like i get from a 1988. also i would like to ask quickly, if there is a tie-in between the oil industry and the automobile manufacturers. i am very suspicious that mileage is tied into the oil companies. i would appreciate your reply, thank you. guest: well, two questions and let me answer the first.

absolutely not, there is no connection between the oil and the manufacturers. that's an urban myth that's been out. and fuel is a component but no control of oil companies. as far as the technology, fiesta was a small car and fuel-efficient. ford is introducing another european version that i think will be popular in the u.s. again fuel economy is important and that's why we supported the increase in the standards in 2007 in congress and now with an average of 35.5 miles per gallon, that means that this will be higher, and it will be

tough to get to those needs, can consumers liking choices. this combined average will help us get. there is a lot of technology in the engine itself and in power trains, will make a difference. host: this is republican caller, gene from woodland, texas. caller: good morning, i wonder if there is anybody talking about this bankruptcy with chrysler and g.m. it's flying in the face of over 100 years of bankruptcy law, that the bond holders are taking the shaft. and the unions are getting bailed out. i do not like the fact that my tax dollars are bailing out unions. hopefully the supreme court will go by the law. and i would like to know what this gentleman thinks about

that. guest: well, thanks for the question. again, i represent -- the alliance represents manufacturers across the board. japanese, u.s. and european. we really haven't dealt with the way government has dealt with the manufacturers on bankruptcy. however, i would say that my understanding, and really looking at this industry in the two years i have been involved with it, unions have actually stepped up. there was a major re-negotiation in 2007, that was taking u.s. based wages down to levels comparable with other companies. i think that all stake hoeld holders have to come to the table, those bond holders.

i don't know the bond holders as well, but they held out and with general motors they had improved negotiations. and with nearly 10% unemployment in the united states, this is the largest manufacturing sector left in the united states. and it was going through a restructuring when the financial crunch hit. and it was the banks in the financial system that lead to this recession, not the manufacturers. they were caught there. will they survive? only time will tell. but i think that u.s. models are world-class today in quality and performance. i think they will be able to compete. no one is going to have 50% of the u.s. market the way that general motors did in the 60's. it's not going to happen. this is highly competitive, that is good for the consumer.

they will benefit and the united states will too, with a revitalizing manufacturing base, and with new plants, with volkswagon and in chatanooga, tennessee. all of these are positive developments. host: you mentioned the reliance role in fuel economy. what other role does reliance have on the industry? guest: we are the trade association for the industry on industry and trade, and we work on safety issues. and the innovation of the industry. and trying to help consumers and others understand, and policy makers what new technology has come into this market. host: is there a stake place

for other support for auto manufacturing? guest: the manufacturing sector used to be a number of plants in california, all of those have moved out save one. and g.m. is going to be closing that one. coming out of that partnership. but the midwest and the south now is a major part of the manufacturing sector. the suppliers are a huge part of this. and part of the concern of the domestics, they share suppliers with both of the japanese and european manufacturers. if we saw a collapse there, it could have cascaded to the other part of the industry. so other manufacturerss are concerned with this viability. dealers are everywhere, in every congressional district, and they are an important part of the economy and community.

so yes, automakers and the industry is very much a part of the fabric of the u.s. host: next call is from fred on our independent line. caller: let me try to make a point and then ask a question. that last republican caller will help me make my point. because he got his talking point straight off of fox news, that's all they have been saying all morning, with their tickler running wild and hollering and screaming. about ruling in favor [inaudible]. host: what is your point? caller: my point is this, the way i understand it, most of the dealers and all of the whatever, they all seem to donate. it's like 10 to one to the republicans. when are you guys going to wise up? the democrats are supporting you, and fox news has made an

industry of attacking you. the republicans hate the unions. they despise the unions. i have a brother that's a dealer, and he's been a republican and he just switched his registration to a democrat. host: fred, thanks for the call. do you want to respond? guest: as a former republican, i won't respond. host: this is our democratic line. caller: i work in solar, and here in hawaii, one the states along with the world is taking a look at a project called better place. and i think that c-span had someone on discussing they wanted their planners to do things. build capacity of large parking lots and the home with special

stations with batteries to remove for the vehicles. therefore the cars are cheap and the batteries don't go with the cars. you lease the batteries by the mile at a cheaper rate than gas. the most important thing it allows the industry, the vehicle industry to create gliders have heard them referred to. they make vehicles and the entities marketing them decide whether to use fuel or electric capacity in the vehicle. and i have a friend that build electric vehicles in hawaii, or tried to. and tiger body, and they were great vehicles and had fabricators in detroit. and that's when g.m. had the ev-1 and that was a problem with no funding.

and is there no capital until we make the mark in the marketplace. and how do you guys feel about that? guest: it's a good point and there are a number of elements to the statement and his question. and that is we will see electrication of vehicles and batteries is the biggest component. and that's the biggest obstacle of mass-wide electric vehicles, the cost and warranty of the batteries. we have seen a transition from lead-acid batteries to lithian iom. the federal government has stepped in with $2 billion in

the stimulus bill for batteries. the caller mentioned, i think there is a number of potential business models for electrication. and the important thing is that the infrastructure has to be there. and it's one important thing for the vehicle, but if the structure is not there to plug the vehicle in at work or home, it undercuts the ability to get wide-spread utilization. secondly the cost has to come down. the more it's produced, i think you will see improvement in acceptance and uptake. but right now the batteries, some popular well-known brands that are purely electric are in excess of $100,000. and that's outside the reach of most consumers. but i think over time you will see a combination of hybrids and plug-ins to get in the

sub-30,000 range. host: the caller mentioned the government and down the road with the financial industry going through a tough time, is it a difficult time to find those private dollars put money into battery research. is it all going to come from the federal government? guest: i think there are investments from both private sector, the venture capital and from governments. and including state governments, michigan has invested a lot and you will see new plants produced there. and you have a number of batteries companies into this. and even companies that have come to the federal government to seek help. it's one thing to go from the laboratory to prototype to

manufacturing and having a car that meets the rigors and requirements to be a product. if you have one big mistake, that really is a set-back for the industry. so we are held to a different standard. host: is that part of your alliance? guest: it's not but we hope that all of these companies want to be a part of this. host: this is nathaniel on the republican line. caller: i have two questions, first g.m. has been a stable of the united states for as long as myself and my parents can remember. and they used to be the innovators, and ford, and the bringers of new technology to the market. but for the past 20 years, we are no longer