vice chairman bob lutz deciding not to retire as planned. bill tucker has our report. >> reporter: after a six-week sprint through bankruptcy, general motors emerged a new company. the new gm, a leaner, more focused company. >> our vision is clear, to design, build and sell the best vehicles in the world, by focusing on, for example, in the u.s. four core brands, chevrolet, cadillac, buick, and gmc. >> reporter: the changes mean gm's u.s. workforce will shrink, to 64,000 by year's end, down from 91,000 at the start of the year. henderson also announced sweeping management changes. the man who championed the development of the dodge viper, the new chevy malibu, the new camaro, the cadillac cts is back at gm. >> i'm happy to announce today we're unretiring bob lutz. >> reporter: the 77 years old, lutz is something of an anomaly in today's post-bailout car world. his nearly 50 years in the business at ford, chrysler, bmw and gm is in stark contrast to the lack of car-building experience of gm's new chairman, or the government-appointed car czar

bob lutz believes they can sell those small vehicles. bottom line is this, it doesn't matter what you're talking about in terms of any automaker, it's a small market for small vehicles in the united states. >> yes. >> reporter: very small, doesn't matter who it is. >> i agreement i think the whole public is rebelling againsts the government planners that impose these cafe mandates, i'm with you 100%. you know me, i like some horsepower, phil, i like horsepower, i'm an american, red blo blooded. you are, too, from the midwest. i got to get out of here. you had a long and great day, appreciate your report. >> reporter: thanks. >> let's get to the market. cnbc correspondent scott cohn has the rundown on today's action, not all that great a day and not all that great a week, what can you tell us. >> you, larry, do have horsepower. let's get that straight. >> i hope so! no cafe fuel standards for me, buddy. >> you're also mr. mustard seed. it's a little clear the market got a little ahead of itself on hopes for a quick recovery. consumer sent

the new camaro and cadillac cts is back at gm. >> i'm happy to announce today we are unretiring bob lutz>> reporter: at 77 years old lutz is something of an anoley, his nearly 50 years in the business at ford, chrysler, bmw and gm in stark contrast to the lack of car-building experience of gm's new chairman or the government-appointed car czar, whose' an investment banker and before that a journalist but never a manufacturer. industry experts applaud the news. >> bob lutz is gm's secret weapon. ceos that have never built cars are not a good thing. maybe the business school textbooks say they are, but i'm not one for textbook anything. this is the real world, and experience pays off in the real world. bob lutz is probably the best, most qualified auto executive on the face of the earth today. >> reporter: qualified and controversial. bob lutz is the man who once said global warming is a total crock of [ bleep ] and stands by that statement and, yet, he's also the driver force behind the extended-range electric vehicle cherve ve volt and non-electric companion the chevy cruze, expected to

vice chairman bob lutz from general motors, a "first on cnbc" interview. maria, you heard it straight from mr. lutz. he intends to be both candid and sometimes controversial. should make covering this company interesting over the years to come. >> thanks to bob lutz for joining us. thanks very much. phil, we'll see you later. now a look at some of the other stories we're following on the "closing bell" ticker tonight. and it is a busy evening. goldman sachs turning bullish on the hardware sector. they're raising their target on apple to 6160 from 145. apple shares tonight looking like this in sizable volume. dell, meanwhile, is goldman's best pick in the hardware center. the firm is telling clients they're upgrading to a conviction buy. new windows 7 operating system later this year. that should drive the new corporate pc upgrade cycle. and dell shares tonight flat really up 7 cents a share. thomas weisel upgrades dell tonight to a market weight from an underweight. hikes its price target on the stock to 16 from 11 because of upcoming organizational change

as fritz indicated, any other oem in the world would love to have bob lutz. bob, after he understood what new general motors is about, he said, hey, i want to be part of this turn around. so we're absoluted delighted. >> you're ready for the unpredictability. ipo, looking into the middle of next year for ipo on the new gm? >> ourn't object i've is to do an ipo as soon as possible. we do have to close the books of the new gm attend of this calendar year. it will take a quarter to do. so technically the earliest possible will be the second quarter of next year, technically speaking. but we're going to have to look at how equity markets are going to be acting. we're going to look at how the industry's acting. from our perspective we would like to do it sooner than later. >> second quarter, potentially early next year. >> earliest. >> what you're saying is that's not done. that's not a done deal. in other words, if the market and the overall economy and the market for ipos is not looking good, you'll hold offer. >> we will hold off. at the same time, we do want to

that also includes bob lutz not retiring this year. lutz will be at the press conference but he'll be taking a new role with general motors, a prominent role being having a say in the future of this krngs how it deals and interacts with the public and new vehicles coming out. general motor needs to stabilize sales. that's the bottom line. they cleaned up the balance sheet through bankruptcy. now this company with 19.6% market share has to stabilize market share and grow it. perhaps when we're in the worst auto sales slump we've seen in 15, 20 years. most of the focus will be on chevrolet. 63% of u.s. gm sales. it will have to carry the water for gm if they'll be successful out of bankruptcy. coming up at 10:30, cfo of general motor, we'll be talking to him about the new direction for gm. this essential essentially done. at 9:00 we'll hear about the new game plan for general motors. back to you. >> good job, phil. thank you for that. we'll see you later. >>> let's move back to this allen & company conference where these guys -- they don'

he is a very, very transparent, as fritz indicated, any other oem in the world would love to have bob lutz as part of the leadership team. we are very fortunate bob, after he understand what new general motors is about, said i want to be part of this turnaround. we are absolutely delighted bob is going to be an integral part of our management team. >> coming up later on "power lunch" at 1:20. you don't want to miss what he has to say. we know bob lutz can be candid. he can make comments that make people cringe within general motors. it will be interesting to see what he says now, that he is in charge of changing perception regarding general motors. >> we all like straight shooters. looking forward to that. >> stay there, don't move. joining us joe lavorgna. we want to talk about how important is the u.s. auto industry to the economy? especially right now? >> it's not that important. gdp is less than 2%, however the big production increase scheduled for the second half of the year, about 45%, could add about .7% to the second-half gdc. .7% is not insignificant. it certainly helps. unfortuna

bob lutz is goining to be takina greater in the compapany and hang influence intetes of fure product planningng wh the company and wrerehey go inin rmrms how i it etetcustomer dendnd a need. that's one of f th t this that s ou thereurrently and we will hear more cngng announcncedvever the next 24 4 ururs. guys? >>>> w willleeeep youou updated david from thihird avenue wasas talking to me as he e wa walking off the set. thing to k kee ininind is the part comining out of b banupupys smalleler anan t part staying in it could beigigficant to ththkk abouout e e ct that itit will te years and yeararsf f th rest of the sisituioion work itstsff ou coming outf bankrkrupy y something itit te e wi a grain s sal cocoy booker is the mayor of new york, newerer jersey andou are one ofof t stars.s. you will huhumb, but thth rising star of the democraticc party and youou have l of it to yoyourame. >>hihis inincribib at the coconfenen. thpepeop here and the breath ofnonoedge on differentsssss is enenomal. >> even ifif y d d't say who was with,utut anything ststruhome wi u? >> how focused thehey are wi

. >> and there's a lot of change on what it at general motors including this man bob lutz. he will not be retiring. he'll take over marketing. his job is to change customer perception. interesting person to put in charge of that given the fact he can be considered a lightning rod in many regard. the new chairman ed whitaker believes the people at gm right now are the ones who can turn around the country. >> this is a company with great people. it has great technology, it has great products. it may have lost its way a little bit, but all the raw materials are here for this deal. not only american success, but worldwide success. you just have to be around a little while and you can sense that. >> by the way, ed whitacre jr has three gm vehicles. at 4:00 today, bob lutz, vice chairman and in charge of changing perception at gm, we'll ask point-blank if he is the man to change people's perception. at "power lunch" an interview with fritz henderson. it's one thing to clean up the balance sheets and bankruptcy, but to convince americans to give general motors a second chance. >>

the rern of bob lutz: the legendary auto executi will postpone retiremento take charge of the crtiveopment of procts and customerelations. the launch oa "tell fritz" weite where the public can email qutions directly to the c.e.o.. and the compy also expects to repay the $50 billion in government loans ahead of th deadline in 2015 when i tald with henderson is morning, i began by askin him what's his pn to get consumers shopng again in g.m. owrooms. >> we're verenthused about thept the products that wee launching toda areinning, vehicles like -- and we' got ek win knocks, we ve a lot of products getting rdy to come in. but it's aut the culture of this gm -- in the future about cars, stomers and culture and in this case it's about taking those vecle launches and then supporng them the very best ve in some of the marketing and brand advertisg and franklyeliving asuch punch as we can inthe mart to let custers come back oking at it siez south you says the customer is the cent of everything. your words. how are you going to convince people that it makes sense to buy a car made by general m

the turn of bob lutz: the legendary auto execuve will postpone retiremt to take charge of the eativeopment of pducts and custom relations. the launchf a "tell fritz" bsite where the public can email estions directly to the c.e.o.. and the coany also expects to repay the $50 billion in gornment loans ahead of the deadline in 2015. when i talked th henderson thisorning, i began by asking him what's hislan to get consumers shping again in g.m. showrooms. >> we're vy enthused about thept the products that 're launching toy are winning, vehicles like and wve got ek win knocks, wehave a lot of products gettingeady to come in. but it'sbout the cultu of this gm -- in the future about carscustomers and culture and in this case it's about taking those hicle launches and then suppting them the very beswe have in some of the marketing and brand adverting and frankly delivering as much punch as we can in the mket to let cuomers come backlooking at it swdz south you say the customer is the ceer of everything. your words. how are you going to convince people that it makes sense to buy a car made by

and product chief bob lutz, who was set to retire, has agreed to stay on in a new role. >> i don't think they're going to come out of bankruptcy, and tomorrow we're going to sell a ton of cars. but i think they needed to do this restructuring for a long time. hopefully, things will be okay going forward. >> reporter: turning a profit won't be easy. gm lost more than $80 billion in the last four years. if it weren't for billions of dollars of government loans, the company would have hit a dead end by now. as for people who bought vehicles from the old gm, there is no need to worry. the new company says that warranties will be honored for purchases that were actually made before and during the bankruptcy proceedings. michelle? >> susan roberts in washington. susan, thanks. >>> the state of philadelphia is investigating accusations of racism against a private swim club in suburban philadelphia. they involve a group of minority children from a city day camp. the club in the mostly white suburb of huntington valley denies discrimination. but our philadelphia station kyw reports protestors say

at the same time, they've elevated an executive named bob lutz who's famous for his designs but infamous for his questioning of global warming and the need for hybrid cars. so we'll see. katie? >> couric: all right. dean reynolds in detroit tonight. thank you. now that horror story we told you about yesterday. workers at an historic black cemetery near chicago allegedly digging up bodies and then reselling the plots. relatives of people buried at that cemetery went there today to see if their graves had been desecrated. cynthia bowers has more. >> reporter: in a dreary downfall, hundreds of grief-stricken families poured into burr oaks cemetery for directions. >> we're going to go this way. >> reporter: a bit of reassurance. >> we'll get you on the next shuttle bus. >> reporter: and bus rides to look for graves they hope are still there. >> i want to know where my family is. their souls is not resting in peace. >> reporter: four cemetery workers here face up to 30 years behind bars for their alleged roles in digging up bodies and reselling plots. dianne duwbre came in from las vegas yest

enter gm veteran bob lutz, now in charge of marketing the automaker, colorful, candid, and some times controversial, lutz once called the role of cars in global warming a crock. >> look it is immaterial. >> reporter: lutz now has to find the right message to convince skeptics who have written off gm. >> i think there is a desire to see general motors succeed. and, my job, is to translate that desire to succeed into a desire to, for more people to buy our cars and trucks. >> reporter: there are still a number of americans willing to give general motors a second chance. in fact a recent nbc news poll found that 75% of ose surveyed might consider buying a big three model as a way to help out the struggling automakers. lester. >>> phil lebeau, thanks. >>> turning to president obama's trip overseas where he wrapped up the g-8 summit capped off his last day in italy with an audience with the pope. then it was on to africa where the first family has just arrived in ghana, their last stop before returning home. we begin our coverage, where the day began, nbc's chief white house correspondent

s chairman and design guru bob lutz, due to retire, has been asked to stay on. but the government wants new blood throughout the company. >> how that organization unfolds is really going to be the demonstration as to whether or not there will be a new g.m. or it will be just a smaller same old g.m. >> reporter: the government's already pumped more than $30 billion into g.m. and will pay up to another $0 billion by the end of the year to get it through this reorganization. katie? >> couric: so, anthony, will the government be effectively running g.m.? >> well, essentially it has been for a while now, katie. remember, the government... the administration picked this new management team, it's going to pick the new board of directors. the president says he has no interest in running g.m., but his auto task force monitors every major move that g.m. makes. >> couric: and how long will taxpayers own the company? >> reporter: that's the big question here. very hard to say. the government says it wants to get out of the car business as quickly as possible but they've got

vice chairman bob lutz. candid and too candid of an executive in charge of the plans in terms of marking. a first on cnbc interview at 4:00 and you don't want to miss it. check out the blog behind the wheel. we have an explanation of why bob is the key to whether or not general motors can win back american buyers. >> when you look at the hurdles you know they are facing, they are cutting cost and making the cards that people want to buy and people having the money to buy them. that's a separate problem and the problem of credit. you buy a car and the financing has to be there. has that freed up at all? >> improved, but not as much as those in the industry would like. you talk with the dealers and it's not like it was when it was tough to write a loan for many customers. you can get most customers alone, but not all of them. they need that to improve. the entire industry. >> thanks for joining us. appreciate it. up next on "street signs," the nasdaq is the big winner up 12%. will tech stocks continue to carry

and bob lutz, this is one of their top executives, been for a while, announced his retirement but now has dproduct will lead to the better top-end and bottom-end in terms of profit. >> one of the biggest challenges is getting the american consumer to believe these are good cars to buy and so they have this whole new pat is to go gm, buy what you own. and so it will be interesting to see if they go that right. cross cotter, thank you very much. the big story, gm emerging from bankruptcy. >>> and now back to the vatican. and these are live pictures of president obama and the first lady michelle obama with pope benedict the xvi. and we've just heard from molly they were going to be exchanging gifts. and what we're seeing is the exchange of the gifts right now. >> reporter: in fact there is the mosaic of the vatican that she referenced. that's the gift from the pope to president obama. and in return prose -- president obama is giving the pope a stoll worn by a priest in the 1850s. it belonged to st. john newman and he was made a saint in 1977. >>> and we are told that besides the first co

ed whittaker will be the gm chairman and product chief bob lutz who is due to retire has agreed to stay on in a new role. >> i don't think they are going to come out of bankruptcy and tomorrow all of a sudden sell a ton of cars but they needed to restructure for a listening time and hopefully things will be okay going forward. >> reporter: turning a profit won't be easy. gm lost more than $80 billion in the last four years and if it weren't for billions of dollars in government loans, the company would have hit a dead end by now. susan roberts, cbs news, washington. >>> aig could be facing a wave of public backlash. in march disclosures of $165 million in bonuses to executives sparked outrage and threatened to undermine the government's efforts to rescue the financial system. now aig is reportedly asking the federal government compensation czar to approve a plan to approve millions in promised retention bonuses next week. the company isn't required to get the government's blessing because in the payments are for 2008 employment contracts but aig wants political cover. >>> locally metro'

and product chief bob lutz who was going to retire has agreed  to stay on in a new role. >> i don'tnk they will come out of bankruptcy and all of a sudden sell a ton of cars but i think they needed to do this restructuring for a long time, and, you know, hopefully things will be okay going forward. >> reporter: turning a profit won't be easy. gm lost more than $80 billion in the last four years, and if it weren't for billions of dollars in government loans, the company would have hit a dead end by now. susan roberts, cbs news, washington. >> what gm and other automakers need are customers. we will learn if americans are in a shopping mood when a consumer sentiment report is released. >>> the department of natural resources are hoping to buy back thousands of crab licenses. they sent back letters to say if they wanted to sell them back. the department hopes to reacquire 3500. they hope fewer part-time crabber also make it easier to manage the overall crab industry in this state. >>> not every day you get to meet the pope, but later today the first family will do just that and sit dow

rst on cnbc with bob lutz torrrr afternoon 4:00, yououo not want to misss it.bobututz tata,,ou want tot arar wt he has tosay. :30, eastern time, h hea fromom raray yngng,cfo. it is rare in businessouou g get second ance. general motorsrsss getting that after 39 dayays nkruptcy, stl l mber 1 in t t u. the estion, can it stabilize salals and t thre and succeed after it comes s ouofof bankruptcycy. >> i think t the world bobutuz a greatt interview. i i ok forward to it. second li i mpmpans do come ouo ofof anankrtcy, it hahapps. i want to ask you this touough ququeson, given the very high cafe fueltatanddsimposed onn the car business, andnd all thi tata about little gen go carts and electric cars, i don'n't ow whe e th ofits will come fr, therefore, alalon with t the china cocoetition, i don't know i can say they'll stay y t t of bankruptcy, cann ew. >> i don't buyhat you're selling, i thihi general m moro will push f fl eiciency and alitity in the future.e. that doesn't m mnn wewe'l see g cas andpipi outsubcompapact cacars yes, you will se more small ca but you w

gm vice chairman bob lutz with us explaining how the automaker can return to profitability, win customers, and when it may pay the government back since now the government owns an enormous amount of gm, some 70%. that's at 4:00 p.m. eastern. first here's where the sax on a friday afternoon on wall street. the most heavily traded stocks on the nyse led by citigroup once again, break 3g a share. back in a moment. >>> welcome back from outside the nyse on wall street. as if they didn't have enough going on, ubs now is looking for a head of its u.s. wealth management business. charlie gasparino has been reporting this breaking story today. he's on the telephone with more details. charlie, what do you know? >> how are you doing, maria? there's a short list and they are looking. i'll give you the short list of the short list. jim gorman who's at morgan stanley right now. i don't put much creed nens that. i think two names that are likely to get this are bob mccann, formerly of merrill lynch, and sally krawchuk. you remember her. formerly at citigroup. i think that's where this is coming down. a

. >> bob lutz they charged with coming up with new ideas. he has been around 400 years. people out and a few people up. nothing has changed. >> can i make a couple of points? i know you will not like this, but i have to bring up wall street. you want to beat up on gm for the lackadaisical attitude, please. let's look at the lackadaisical -- look at the lack of leadership in these wall street companies that got huge bailout. tit-for-tat. martha: the lackadaisicalness of boards goes across a huge sector of this country. i have no favorites. their job is to do the right thing by the shareholders. >> we agree on that. >> this is going to be a very different board than they had before. ed whittaker is a tough guy. >> in terms of gm's competitiveness, instead of throwing them under the bus, they are great company. excuse me. the only created the middle class in this country. they helped to create the middle class. the made great product and help us win world war ii. they will help us win future economic wars. martha: the bottom line is when somebody goes, i need a new car. wha

bob lutz did a great job of making cadillac an important name.ir silver ra doe truck is fantastic. the malibu won car of the year. it competes against cars out there that are like it. do you get the impression that they have the culture to lead them to success again like ford has been able to change its culture and way of thinking. >> right. alan maalley has been able to do that in ford. i was with fritz henderson. he loves the buick crossovers. he said i don't need 100%. give me 80% of what i need to know, i will make a decision and move forward. they are proving they are cutting back the top executives by 35%, ali. they are doing what the government is doing with regulatory bodies. they are doing what we are seeing across a lot of sectors. they are cutting away the fat and really focusing and they want to move fast. we will see if they can do it. >> poppy, great to talk to you. go to money.com and check out what poppy has done. poppy, stick around and watch this one. you have a great team there at money.com but you might need some team building