fritz henderson. then, we have the other news of the day, including a margaret warner report on the last day of the economic summit in italy; a preview of the upcoming confirmation hearings for supreme court nominee sonia sotomayor; the analysis of david brooks and ruth marcus; and a media unit look at the saturation coverage of the michael jackson story. major funding for the newshour with jim lehrer is provided by: >> tiny little thing, it's just... not big. ah... okay, i found it. ( cheers and applause ) okay. >> we are intel, sponsors of tomorrow. >> the world is changing, and how we use energy today cannot be how we use it tomorrow. there is no one solution. it's not simply more oil, more renewables or being more efficient. it's all of it. our way of life depends on developing all forms of energy, and to use less of it. it's time to put our differences aside. will you be part of the solution? chevron, human energy. and the national science foundation. supporting education and research across all

fritz henderson, is he the man for the new gm? look, my understanding is he is a career gm executive with virtually the identical career path and trajectory as rick wagoner who's gone now, the right guy for the new gm? >> that's an interesting question, you have to have somebody involved with automotive and any company that brings in a bunch of outsiders and that includes mr. whittaker who is coming in, very smart man. if you don't know the auto industry, very hard to operate in the auto industry and this is traditionally happened. i can think of three or four companies where they brought in outsiders and they've cleaned house, and cleaned out everyone and brought in their little people and staff and it hasn't worked. you need someone who with automobile experience to say this is what we've done in the past and it hasn't worked and he's the man. >> i want to remind folks of what they're seeing in the lower right-hand portion of the screen. this is president obama meeting with pope benedict xvi. the president wraps up his visit to

fritz henderson said it was like having a second chance in life. but he quickly added there will be no third chance. katie? >> couric: dean, we keep hearing about the new and improved g.m. but is there any real evidence it's changing the way it does business? >> reporter: well, basically, they say they're going to bring out cars that people want and bring them out a lot faster, including green cars. 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 dire

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. >> do you know what those current market cap on the new gm happens to be, by any chance? >> i don't. in part because they're still trying to figure out a lot of things out. they are not going to be cash flow positive, at least until the first quarter of next year. not even thinking about an ipo until the middle of next year. even though you have a company that is out of bankruptcy, it's hard to say, okay, definitively this is what your market cap is going to be. >> stay with us. we have more questions for you. i want to brink in john loconowitz. thank you for joining us. let me throw this at you. in other words, this is a company that surprisingly, i think a lot of people didn't think this would actually happen as soon as it did. did manage to get itself out of bankruptcy, certainly with a lot of help from the government. what does this mean in terms of the s

fritz henderson said they might not need all the money. they will leave it in escrow.hey might not spend it all. two, he expects they will pay it back ahead of schedule. i hope he's right. chris: jeff flock reporting from g.m. headquarters in detroit. thanks for that. oil prices settled below $60 a barrel. crude futures lost 52 cents to close at $59.89 a barrel, a 10% drop in a week. gasoline fell a penny and a half overnight and is averaging $2.56 1/2 cents a gallon. the u.s. taidz deficit fell to a nine-year low in may. the deficit was $26 billion, a drop of almost 10% from april. experts say the weak u.s. economy has depressed the demand for imported goods. stocks were mixed today. the dow was off 36. the s&p 500 gave back just over 3 1/2, and the nasdaq gained almost that same amount. one veteran white house correspondent admits the media were biased during the last election, and is president obama more catholic than the pope? really? t sword fights pointy slippers and green wool tights take a tip from a knight who knows free credit report dot com, let's go! vo: of

fritz henderson will announce 4,000 more white collar jobs will be cut. and general motors will have new owners-- you. the old general motors lost more than $80 billion in the past four years, now it's counting on $50 billion in government bailout money to lead the new company to profitability. here's our business correspondent anthony mason. >> reporter: as it emerges from bankruptcy, the once might yes general motors corporation will become the smaller general motors company. half its brands are being sold off or phased out, leaving only she vi, buick, g.m.c. and cadillac. and the new g.m. reportedly is considering changing its logo background from blue to green to emphasize its commitment to smaller, more fuel efficient cars. the united states treasury will st the company's biggest ockholder. the american taxpayer will own more than 60% of the new g.m. and the obama administration has picked a new management team. fritz henderson remains as g.m.'s interim c.e.o. former at&t chairman ed whitacre will become g.m.'s chairman and design guru bob lutz, due

ceo fritz henderson detailing how the new gm will look. phil lebeau behind the wheel for us in detroit with more. >> far leader general motors is what we are going to be seeing now that it's out of bankruptcy. take a look at what the new general motors will consist of. we know about the four brands, chevy cadillac, gmc and buick. they are stripping down the management of this company. 350 u.s. or 35%, i should say, of the u.s. executives are going to be leading the company, stripping out management layers, potentially flattening up the company. the focus now, customers, cars and culture. all of that is great. ceo fritz henderson admits, doesn't matter unless they can sell more cars. >> to win we need to stabilize and grow our business around the globe. particularly here in the united states. that means building more of the gorgeous, high-quality, fuel-efficient cars, strux and crossovers the consumers want and getting them to the market faster than ever before. >> gm's vice chairman bob lutz ain't leaving the company. sticking around. was

i just finished a conversation with the ceo, fritz henderson. he truly thinks this company has what it takes at this point to turn around after $50 billion in u.s. aid propping it up. here is how gm will try to turn around. they are really shedding dealerships, cutting from 6,000 dealerships down to about 3,600. what you're seeing there is the goal that gm has to improve that market share that's been declining for decades. let's show you some video and talk about the plants because gm is closing 16 plants. they'll cut 20,000 workers by the end of the year. they're also going to cut a lot of executives, about 35% of their executives there at headquarters. they're going to have significantly less debt thanks to the u.s. aid and it's going to try to make more attractive products. they'll launch ten new vehicles in the u.s. and 17 new vehicles around the world in the next 18 months. the ceo said in the press conference this morning his three priorities are simply this, customers, cars, and culture. but can you really change culture through the bankr

fritz henderson expected to speak again. here about two months ago, glenn sat down with him. take a look. hear this. glenn: you're now in bed with the federal government. we have cars now possibly going to be made by a company owned by the union and the government. what kind of nasty k car are we going to be getting in the future? >> well, glenn, neither the u.a.w. nor the u.a.w. veba nor the federal government has demonstrated any interest in running our business. the product, you're going to have -- glenn: the government owns g.m. if that's not running your business, what is? the people that are involved in helping you, quote, unquote. you have the government. their agenda is pro union and green. green and efficient. then the unions, their agenda is higher growth, legacy costs, and on the other side you have the consumer who wants a good car at a fair price. then you have the shareholders who want low cost and high profits. how do you possibly serve all of these masters? >> well, it starts with the customer and the product, actually. the only way to make it work is to get t

at a news conference yesterday, gm ceo fritz henderson said the company needs to embrace new business methods. >> we deeply appreciate the support we've received during this historic transformation and we'll work hard to repay the trust and the money that so many have invested in gm. the last hundred days has shown everyone, including ourselves, that a company not known for quick action can move very fast. starting today, we want to take that intensity, the decisiveness and speed of these last several weeks and then transfer it from the battlefield triage of the bankruptcy process to the day-to-day operation of the new company. this will be the new norm at general motors. >>> chrysler decided to keep make the vipir sports car. the company previously said it would sell off the vipir business and production would end this year, but yesterday chrysler said it would keep making the v-10 car through 2010 and beyond. base models of the vipir begin at around $90,000. >>> get this, a woman in west virginia is on the kind of lucky streak everybody hopes to hit. 60-year-old brenda bailey won $7

at a news conference yesterday, gm ceo fritz henderson says the company needs to embrace new business methods. >> we've deeply appreciated the support we've received during the historic transformation. and we'll work hard to replay the trust and the money, that so many have invested in gm. the last 100 days has shown everyone, including ourselves, that a company not known for quick action can, in fact, and indeed, move very fast. starting today, we want to take that intensity, the decisiveness, and the speed of these last several weeks and then transfer it, from the battlefield triage of the bankruptcy process, to the day-to-day operation of the new company. and this will be the new norm at general motors. >>> everybody wants to save more and spend less. and we have just the guy to help you. join hln money expert, clark howard, at 4:00 p.m. eastern. "the clark howard show," 4:00 p.m. eastern, right here on hln. >>> two brothers turned their humble beginnings into a business empire. they launched their own company in a historically black neighborhood in st. louis. today, they're worth

fritz henderson will join the company in the morning. >>> the treasury department led 1 packages andember, these warrants are the things that the government still held after banks took money from the tarp? that was the thing that was supposed to allow the taxpayers to make up? but this report says that the taxpayers passed about $10 million of profit from government bailout. today's watchdog report states uncle sam could lose about $1 billion if it accepts similar warpts that gol going to be purchased by other big banks that receive capital injections. the panel is calling on the treasury to sell these securities in a public auction. the panel's chief, elizabeth warren, she's going to join us live in the next half hour to talk about this. this is a big bone of contention right now between big banks and the government. ten big banks have paid back the t.a.r.p. money. the last things on this is these warrants. they don't agree with the price that the government sloog to pay or asking them to pay. >> the small banks, the implication here is that the the government is not getting enough

that is the word from fritz henderson. his company emerged from bankruptcy in 40 days, quicker than a lot of people thought it would. gm is already making big promises. >> we appreciate the risk support we have received during this historic transformation. we will work hard to repay that trust and the money that so many have invested in gm. rick: it is a lot of money. the government offered $50 billion in tax dollars to gm. all of us on a little more than 60% of the company. what do we get? gm is slashing bureaucracy to become a leaner company. it will listen to what customers really want and it will now focus on four core brands, buick, cadillac, chevy, and gmc. gm has tried to reinvent itself in the past. the question is whether this will be different. rich is live in washington. what exactly is gm doing that it has not tried before? >> the company is dramatically cutting the size of its business. gm is eliminating grants, one that has been around more than 80 years. the company is overhauling its bureaucracy, cutting on

that is the word from fritz henderson. his company emerged from bankruptcy in 40 days, quicker than a lot of people thought it would. gm is already making big promises. >> we appreciate the risk support we have received during this historic transformation. we will work hard to repay that trust and the money that so many have invested in gm. rick: it is a lot of money. the government offered $50 billion in tax dollars to gm. all of us on a little more than 60% of the company. what do we get? gm is slashing bureaucracy to become a leaner company. it will listen to what customers really want and it will now focus on four core brands, buick, cadillac, chevy, and gmc. gm has tried to reinvent itself in the past. the question is whether this will be different. rich is live in washington. what exactly is gm doing that it has not tried before? >> the company is dramatically cutting the size of its business. gm is eliminating grants, one that has been around more than 80 years. the company is overhauling its bureaucracy, cutting on

fritz henderson will stay on as the interim ceo. 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 bec

ceo fritz henderson to begin speaking at any moment. as soon as he begins we will take you off there live. good morning, everybody. i'm mac haines. >> i'm rebecca jarvis. the wall street post report that aig set to pay millions more in bonuses. financial blogs and others all fired up about this. but if you do the math, $2.4 million, aig allocate to the 40 execs comes out to $60,000 a head. sounds more like the cost of doing business than lavish compensation packages. if you're an investor, the thing you should really be outraged about is since the aig's reverse stock split at the end of june, shares have been more than cut in half. what happened to all of that counteparty stuff, t, mark, the 100 cent on the dollar that got paid through to their counter parties. that sort of disappeared. >> yeah. you noticed that. let's check out the futures. they weren't too good earlier. they're still not good. we're down 6.90. we needed 0.38 to fair value. 40, 60 points on the dow at the open. once again, it is now official. they are officially out of

fritz henderson promised tay as he annoced g.m.'s official exit from bankruptcy.so vowed the vamped company will focusbsessively on customers responding toheir needs re quickly than the old g.m. that's the reasofor some new inittives unveiled today. a new partnership with ebay at will let custors buy g.m. cars line. the turn of bob lutz: the legendary auto execuve will postpone retiremt to take charge of the eative development 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 hicl

i worry about what fritz henderson said about the culture of winning.s is a company that was all about being number one for many, many years. is that going to be the gm that we see going forward? >> reporter: it's interesting. i asked him, how important, you are no longer number one in the world. toyota took that title from you last year. how important is it that you hold off ford and toyota in the u.s. and you remain the number one selling automaker? he said it is not about that number one spot. it is about profitabilities and getting people excited about your brand, coming in and buying the cars. they have sold well son some of the new cars. some won't listen to them. take a listen to what he said about why it doesn't matter to be the number one spot anymore. >> we do sell close to one in every five vehicles in the u.s. market. we are very grateful for that. second, we have a chance with the products we have to go back out to the four out of five that were considering our products in the future to try to get them to reconsider our products. i do thing

i was just up and spent some time with fritz henderson.e. they do have a plan. they have accomplished a tremendous amount in a short period of time. i asked, why couldn't you have done this before? some of the balance sheet stuff they could not have gotten done any other way. they got rid of the labor costs that they had. it would have been hard to do in any other way than a bankrupt company. the restructuring could have been done. we can cry over the spilled milk of before or we can try some new milk. they have pretty good cars to sell. we will see how it goes. we have a lot invested in it. martha: let's bring in the rest of our panel. we have the mayor of lansing, mich., and an ardent supporter of the auto industry. our other guest will be filling in for glenn beck tonight. we have had some heated discussions about gm and the auto industry over the last several months. when i look at the things that they did, getting lean, they are down to four brands. the cadillac, buick, the chevy, the gmc. they cut jobs. i say, these are the things th

fritz henderson promised tod as he annound g.m.'s official exit from bankruptcy.so vowed the remped company will focus oessively on customers responding to tir needs mo quickly than the old g.m. that's the reason r some new initiaves unveiled today. new partnership with ebay th will let custome buy g.m. cars onne. the rern of bob lutz: the legendary auto executi will postpone retiremento take charge of the crtive development 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

. >> reporter: ceo fritz henderson introduced the new gm. he's promising a laser focus on high-quality, fuel-efficient cars, and a new management culture humble and determined to pay back the taxpayer. >> a new era. we have the highest expectations for ourselves, and everyone associated with the company must realize this and be prepared to change and fast. >> reporter: the new gm is much leaner. there are fewer brand, gone are saturn, saab, pontiac, and hummer. now, there are just four from which to choose. buick, cadillac, gmc, and cheverolet. >> getting acclimated to less volume and now it's time to produce energy efficient. >> reporter: for that gm is pinning its hopes on the electric volt. you do on the market late next year. until 10 it's relying on bread and butter cars like the chevy malibu and thies are recoof muscle cars like the popular camaro. and the company will sell on beebe. >> consumers will be able to actual -- on eastbound. >> consumers will be able to actually bid like they do at an ebay auction. >> reporter: the company l

but ceo fritz henderson says he's optimistic about the second half of the year because most of the government'sonomic stimulus has not yet kicked in. >>> gm's former ceo is retiring at the end of the month. rig wag rick wagoner is getting a pension package of more than $10 million. >>> discount airlines appear to be locked in something of a fare war. southwest is offering trips for $39 this year. air tran goes as low as $39. and major carriers are matching many of the fares. i can almost hear you scurrying to your computer. >>> while you're there, check out our website for the latest business news anytime, abcnews.m. >>> and when we come back, a long trip to a new prison comes to an end for stock swindler, bernard madoff. >>> and the president takes to the mound in st. louis. the ball or strike call, next in spor >>> welcome back. these are the latest headlines from abc news this morning. sonia sotomayor is defending herself against accusations that she's too biased to become a supreme court justice. there will be more questions today on capitol hill. >>> the black boxes and the damaged portion

just a few moments ago, ceo fritz henderson said the new company will be faster and more responsive to customers than the old one. he also said the automaker will repay about $50 billion in government loans ahead of schedule. >> our vision is clear, to design, build and sell the best vehicles in the world, something that general motors was known for many years ago and something we need to re-establish. >> and here now to explain how this happened so quickly and what it means for consumers is cnbc's matt messto. >> hi. >> reporter: they said it couldn't be done. they said it would take years. they said it would crush demand from consumers, but when all was said and done, gm entered and emerged from bankruptcy in just 40 short days. no one saw that one coming. now the new gm, the new gm is promising a return to its core focus of, well, designing and building great cars and trucks via just four remaining brands, that's chevy, cadillac, bui and gmc. so what else is left at the new gm? well, about 70% less debt, a workforce of 68,000. it sounds huge, but down by about 1/3 and 1/2 of what it

on one hand people say smartest move fritz henderson could make, he is the sharpest mind in the auto business, fantastic move. on the other hand, i have people saying, you know what? he's a bit of a lightning rod and sometimes he's going to say things that are going to make people inside the company cringe. so which bob lutz are we going to see in this job? >> well, absolutely both. absolutely both. i've always been disruptive. i've always believed in very clear and honest communication. i never hide my motives or objectives. i'm not a good politician. i believe in the -- i believe in the frontal assault, you know. >> absolutely. >> and yes, it does ruffle feathers. but i think we're -- i think we're at a stage in the company when we really need to do that. and i'm always reminded of a favorite saying of mine coined by larry bossidy, who said tension and conflict are necessary ingredients of any successful organization. >> what's the biggest problem at general motors right now? in terms of if you're being totally honest and somebody came up to you and said i don't like this about gm,

fritz henderson is expected to announce gm would cut another 4,000 white collar jobs as sales aross the industry continue to slide. the problem is, june numbers show consumer spending is down. nearly one in ten americans is without a job, the highest rate in 25 years. some say it may be time for a second government stimulus pack often. nancy pelosi says the first stimulus needs time to work. >> this third quarter is a big quarter for the stimulus. i think people will begin to see more of the results. >> reporter: retailers are looking towards the third quarter worried sales will go down. again, they say the critical back to school season is important. reporting live in the breaking news center, sherrie johnson, abc 2 news. >>> health experts are urging robert gates to ban the use of tobacco including the sale of tobacco on military property. we're talking changes that could dramatically alter it. the study requested by the pentagon calls for a phased-in ban over a period of several years perhaps even of 20 years. >>> gobl problems, africa and the pope on climate change and the economy i

. >> reporter: ceo fritz henderson introduced this as new priorities. better cars. new corporate culture and a laser focus on the customer. >> reporter: they received a lot of christ simp -- criticism for relying too heavily on gas- guzzling gms. >> reporter: top of the list is the electric volt. but since it won't hit the market until next year, gm is relying on solid performers like the chevy malibu. and it's creating buzz with the new version of its muscle car, the camaro. more than 9,000 sold in june. and gm says it's the start of a comeback. >> i got a gm product right now. treated real well here. and want to stick with it. >> reporter: plus, the company that was born decades before the computer era, will now sell on ebay. for now, the automaker is down to just four brands. chevrolet, buick, cadillac and gmc. >> we're finally going to have a leaner, faster, better gm. we have been looking forward to this. >> reporter: but it's still dependent on the government, which owns 60% and has pledged $50 billion in loans. gm plan perhaps -- promises to pay it all back.

fritz henderson will stay on at gm's interim ceo, jeff whittaker will become gm chairman. 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 s

ceo fritz henderson says july sales are weak compared to the same month last year. but henderson says he's optimistic about a recover in the send half of the year because most of the government's economic stimulus hasn't kicked in yet. >>> the gm former ceo walking away with a pretty sweet pay package. rick wagoner retiring with pension and benefits valued at more than $10 million. he was forced out by the obama administration at the end of march after 32 years. >>> it's a good time to book a flight. airlines are in something of a fare war. southwest is offering trips for as low as $49 on some flights from august through november. airtran will go as low as $39. many other major carriers are matching many of these fares. coming up on "good morning america," how to make your flea market finds into treasures. after your local news. that is your "moneyscope report." i'm jeremy hubbard. >>> 6:26. mostly clear. we have a chilly morning. we keep talking about this baltimore record that is actually at the airport. what about the rest of us? north and west where it's been cl

we are looking at live pictures out of detroit right now, awaiting for fritz henderson, the chief executive officer getting ready to speak. you see all of the cameras getting set up there. as soon as he begins talking, we, of course, will bring it to you just seconds away. in the meantime, oh, here we go. let's go ahead and go straight to him. >> the photographers take your seat or move back a little bit. we'll get started. good morning, everybody, and good afternoon and good evening for those of you joining us from other parts of the globe. welcome to once again we're coming to you from the general motors headquarters at the renaissance center in detroit. we have some very important announcements to make this morning. we only have a short amount of time, we'll get to them very quickly. you will have a chance to ask questions obviously in the room, but also for those of you on the phone, when you're ready you can push star one and cue up to ask a question. and those of you online have the ability to send us their questions, as well. so without any further adieu, we'll get started. let me pr

fritz henderson remains as g.m.'s interim c.e.o. former at&t chairman ed whitacre will become g.m.'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

as fritz henderson reiterated, we will reduce our salaried employees by 35%. a lot of executive positions because we now have a much leaner company. we are going to increase control. we are going to get down to 60,000 employees or so in the u.s. and that is a drastic reduction. all of us a very much regret seeing people go and seeing plants closed. that is just the way it is. when the company has to go to a smaller market size, which we have to, we are about 9 million vehicles for the entire industry. this is about half of what was being sold a couple of years ago. you have to make a downward adjustment. so did the suppliers and the suppliers to the suppliers. that is life. jennifer: thank you for being with us. he is optimistic but what does the future hold for gm? we're joined by steve again. have you made any money? >> that was a fascinating interview. he is an impressive person. i have a red camaro and i love that car. jennifer: i was going to ask you if you were going to get one. tell us, this is all sounding very nice today. we did not focus enough on th

fritz henderson says the company will make money and repay loans faster than required. >> it is an exciting day for general motors. today marks the beginning of a new company, one that will allow every single employee, including me, to return to the business of selling great cars and trucks and serving your customers. >> he believes the emphasis on fuel efficient vehicles is one key to their success. to read more about gm, you can log onto the web site and click on "project economy." there is some good news on the local housing front. for the first time in more than two years, home sales in the baltimore area increased in june, 2% over june 2008. first-time home buyers are driving the trend, but the median sales price of the home fell more than 7% last month to $250,000. >> the maryland republican party must repay more than -- thousands of dollars to michael steele. the violations turned up during a routine audit in the political committees. they must reimburse him $77,500. >> the and a acp just -- and a anaacp just had a birthday. tim tooten is live with a preview. >> they will have more t

ceo fritz henderson sa the new gml be focused on the customer.e says they're gog to me money on this thing. in fact, they'reoing to repay the $50 billion gernmentoan ahead of the deadline, which is 2015. i've said l along, it's a loan, it's not a bailout. now gm is coming out saying, we're going be able to make the deline, we'll probably beat it. joininus to talk about the new gm is the chief financial officer ray young. good to have you o"the ed showtonight. did you expect the camaro toe this hot? >> well, we knew ase developed the product that thisas going to be an exceptional pduct. so we were very anxio to t a prodt unched in the marketplace in order to se what the reaction was from the customers. ands you saw, the reaction has beenbsolutely incrediblefor this vehicle. we're absolute delighted. we've got different versions of th camas and they're all going t the doors as fast as we can build them. how much hs it helped you to ha a hot summer movie out therfeaturing this vehicle? >> well, it helps, fitely. it gs back tohat we call crcreave mar

fritz henderson coming back and saying, this is going back to basics.company can do that, we are going to change the company perception. in a statement today, fritz henderson came out and said, now it's our responsibility to fix this business and place the company on a clear path to success without delay. this is an executive that likes to work very, very quickly but this may be gm's last chance to get it right. we want to know what you think. weigh in on facebook.com. >> people are writing in. let us know what you think. is this the right plan for gm? >> poppy harlow, thank you. >>> we are waiting to hear from president obama and russian president medvedev. we are going to have live coverage of their sucmmit conference coming your way any minute. ♪ ♪ and as you can see it kinda bites! ♪ ♪ so sing the lyrics with me: ♪ when your debt goes up your score goes down ♪ ♪ when you pay a little off it goes the other way 'round ♪ ♪ it's just the same for everybody, every boy and girl ♪ ♪ the credit roller coaster makes you wanna hurl ♪ ♪ so throw your hands in

ceo fritz henderson and new chairman ed whitacre will hold a press korns at 9:00 a.m. new york time. announcement on gm's board and management shake-up are expected next week. vice chairman bop lutz will be staying on in a had new position. >>> aig is seeking to pay about $2 million more in executive bonuses months after an earlier round of payment set off a public firestorm. i a ig is asking president obama's new compensation czar to approve the bonuses to heed off any criticism. aig saying these are from employment contracts of 2008, but the board ace aig is not really to move forward kwout that information. >> and coming up, china calls for an overhall of global foreign exchange. >> not much impact on the trading day today. the stock market has been sluggish. [ female announcer ] te cleans so completely yn [ pop ] ♪ don't, don't you want m ♪ you know i don't lieve you ♪ wheyou say that you don't need me! ♪ [ female announcer ] why go pt of the way clean? iffer duster extender reaches up to three feet, to go where otrs can't. and traps and locks st and allergens. [ p

fritz henderson will announce 4,000 more white collar jobs will be cut. and general motors will have new

. >> reporter: ceo fritz henderson introduced the new gm as a company with priorities. >> the old gm received a lot of criticism. new gm says it will concentrate on the more fuel efficient models. more than 9,000 sold in june. and gm says it's the start of a comeback. >> i got a gm product here. >> plus, the company born decades before the computer era will now sell on ebay for now, they are down to just four brands. >> but it's still dependent on the government. we chose 60% and have pledged $50 billion in loans. gm promises to pay it all back. but in a rough economy, there could be potholes along the way in the detroit, drew levinson, wjz eyewitness news. >>> general motors is expected to generate cash and repay billions in government loans, ahead of a 2015 deadline. the company's 40 days under court supervision was far bigger than anyone predicted. >>> vic is in the newsroom with details. >>> an attorney for the self- proclaimed white supremacist says his client is still not well enough. a public defender says when he visited von brunn, he was able to hear him doctors say von brun

the new ceo fritz henderson, says it's a new road for business. and chris bury joins us with more. good morning, chris. >> reporter: good morning, bill. here, general motors emerging from bankruptcy after only 40 days. executives are promising a fresh focus on building the kind of cars that consumers truly want to buy. day one for the new general motors at this dealership near chicago. the latest cadillac model, delivered just in time for a new beginning. >> i think it's head and shoulders above the, you know, the past model. i think it's going to do very well. >> reporter: the new company needs some big hits as it emerges from a lightning-quick bankruptcy. leaving behind billions in old obligations, a mountain of debt. >> in the bankruptcy world, we call that the test of viability. can this company make it without the debt? >> reporter: the new gm is slashing its executive ranks by 35%. factories, dealerships, the union workforce, all are being dramatically cut back. >> it's a new era. we have to have the highest expectations for ourselves. and everyone associated with the company

whitaker said the performance of fritz henderson, he will know whether or not he is doing a good job based on the profitability of the company and believes people here at gm are the ones who will be able to turn the company around. >> this is a combination of great people and great technology and he may have lost his way, but all the raw materials are here and not only american success, but worldwide success. you have to be around and you can sense that. i'm sure that's the case. >> one of the veterans will be a big part of its future. 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 f

fritz henderson says g.m. will make money and repay government loans faster than required.d he says the company has a new focus. customers, cars and culture. >> it's an exciting day for general motors. today marks the beginning of a new company, our company, one that will allow every single employee, including me, to return to the business of creating and selling great cars and trucks and serving our customers. >> henderson also says he believes fuel efficient screeks is one key to success. log on to our website at www.wbaltv.com to read more. just click on "project economy." do you make purchases from the thrift store with a credit card? if so that could be hurting your credit. some credit card companies are tracking purchases from thrift stores. >> it's not just any day at the salvation army thrift store. >> it's -- >> wacky wednesday. >> because all clothing and furniture is half price. >> something else that's kind of wacky. every time you pay in a thrift store or con assignment place or thrift place the credit card will know about it and use that information to punish

ceo fritz henderson they will reduce employment by 25% by the end of 2009. management ranks will be cut by the number of dealerships and the inventory at each dealership, so they've made them much more efficient. you'll probably see fewer manufactures incentives and dealer incentives on certain models because they've been able to whittle down the inventory and they don't need to give incentives right now. but you could get a good deal on other models. again, you won't see that much now in terms of a difference, but what you'll see later on, and what they hope, is that you'll see better models, vehicles that are por appropriately geared towards the u.s. market, maybe a better smaller car market. they'll still make the cadillac and the trucks. but they want to go toward the green area. 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

chief executive fritz henderson says he hopes the company will repay the billions it borrowed from the government ahead of schedule. >>> and concerned families have been flocking to an historic cemetery in chicago to check on their loved ones' graves. thousands showed up at burr oaks cemetery. three grave diggers and a cemetery worker have been accused of digging up hundreds of bodies and reselling the plots. authorities say the four made about $300,000 in the scheme. wolf? >> thanks very much, mary. stand by. we'll get back to you. the illinois funeral deck or thes' association, by the way, says there is not a shortage of space to bury the dead. according to the group, there's enough cemetery space in the state to last another 100 years. and nationally, the rate of burials is actually decreasing. the national cremation association says almost 35% of the deceased were cremated in 2007 compared to less than 25% a decade earlier. by 2025, the rate is expected to be almost 60%. >>> to london this afternoon. 100 firefighters have been battling a massive building fire. let's bring in our in

. >> reporter: and ceo fritz henderson says the automaker has a plan to stay on track. instead of eight core brands the company now has four being built in smaller factories with fewer employees. more than 6,000 jobs including 450 executive positions will be cut by the end of the year. the plan is to focus on cars, culture and customers. >> the new gm, we need to make the customer the center of everything and we'll be obsessed with this because if we don't get this right, nothing else is going to work. >> reporter: despite job cutbacks gm wants everyone to know the stallout is over. the new company plans to build more cars antrucks that consumers want and launch them faster than in the past. gm also plans to experiment auctioning new cars on ebay and even considering a name change as they pursue higher efficiency and better quality vehicles. >> very difficult moves, significant sacrifices made by all. >> reporter: the government which owns a majority stake in gm has vowed that it will not get involved in day to day decisions. gm hopes to break even by next year. >> than

fritz henderson drove off in an electric car as he left company headquarters yesterday. general motors received some 20 billion more in federal aid friday. the remainder of the 50 billion of the company was promised. oil prices have slipped below $60 a barrel. did you hear about this? they closed at 59.89 a barrel yesterday. and that's more than a 10% drop over the course of a week. meanwhile, gas prices have fallen for 19 straight days. right now, a gallon of gas averages about 2.57, 56 a gallon. this time last year, remember, what gas was costing you? $4.10 a gallon. well, the angry oklahoma state trooper, the paramedic who refused to submit to arrest while he had a patient. you've seen the video. what was going on inside the ambulance while the scuffle was underway? when we come back, new details that have story as part of our series, know he where to hide. sd assistance getting around their homes. there is a medicare benefit that may qualify you for a new power chair or scooter at little or no cost to you. imagine... one scooter or power chair that could improve your

. >> reporter: ceo fritz henderson introduced the new gm as a company with three priorities, better cars a new corporate culture and a laser focus on the customer. the old general motors received a lot of criticism, relying too heavily on gas-guzzling trucks and suvs. the new gm says it will concentrate on the fuel efficient models. top of the list is the electric volt. but since it won't hit the market until next year they are relying on solid performers like the malibu and it is creating buzz with the new version of its muscle car, the camaro. 9,000 sold in june and gm says it's the start of a comeback. >> i have a gm product right now. i have been treated real well here and i want to stick with it. >> reporter: plus, the company that was born decades before the computer era will now sell on ebay. for now the automaker is down to four brands, chevrolet, buick, cadillac and gmc. >> we will have a leaner, faster, better gm. we have been looking forward to this. >> reporter: it is still dependent on the go. which owns 60% and pledged a $0 billion in loans. gm promises to pay it all back b