host:this is cora, when a general motors retiree. -- a general motors retiress. e. caller: one of the things that was prevented it was the help and care. i was concerned about how they will help us in that respect. guest: it is very clear that the auto workers made significant sacrifices, and the retirees and made significant sacrifices as you just laid out. the loss of health care are significant concessions. bondholders

general motors exits bankruptcy 40 days after entering it. the government will be the majority stakehoer. 4000 more jobs could be cut. sales continued to slide. consumer spending was down in june. nearly one in 10 americans are without a job. >> the first stimulus bill was like taking half a tablet of viagra and then have it a bunch of can the knicks did. >> there is still disagreement over the cost and effectiveness over the first stimulus bill. >> the third quarter is it a quarter for the stimulus. i think people will begin to see more of the results. but some say there have been signs begin -- that the economy is improving. there is concern that sales will not improve. philip stewart, abc 7 news. >> thank you. >>> roland burris is expected to announce today he is backing off a run for reelection. rod blagojevich up. it burris to fill the senate seat of barack obama. a lack of campaign funds is thought to be behind his decision not to run. >> he is under a lot of pressure from docrats since he took that post, at first to resign and then not

we're hoping we can do the same with general motors. host: we have taken a camera to flint, michigan. we will show you some of that as we listen to our next telephone call from new york. you are on the air. caller: how were you doing? i was wondering -- with the amount of money that we have spent to bail general motors out and other money that we spent and we have not seen any return on it, can you give us a realistic view of how they are going to bring general motors back and how they are going to pay us back this money? i am talking about numbers. could he give us some numbers? i'm very skeptical that we will ever see that money. hostguest: the administration pt together the general motors package. they talked to a wide range of industry people, a wide range of experts. they went through multiple different scenarios and assumptions about sales and market share and a variety of things like that. they became convinced that there is a reasonable chance that this was going to succeed. by the definition of success, there is an ongoing and

tonight, general motors is almost out of bankruptcy in just about a month. why isn't anyone talking about how fast and how unconstitutional this has been? also, oil tycoon t. boone pickens drops his plan to build the world's largest wind farm. he is here and he will tell us why, and we go live to alaska for the latest on governor sarah palin. if you believe this country is great, but the government is marching us toward hell, get out of line and stand up. you know the drill! no m&m's, no converse sneakers, but plenty of beck. come on, follow me. after about a month, the judge has approved the sale of general motors' strongest assets to a newly formed company, a major step towards leaving chapter 11 bankruptcy. here is how it breaks down, the u.s. government, you, the taxpayer, will own about 61% of general motors. the unions will own 17.5%. the canadian government will own 11.7%, and the old general motors will own the remaining 10%. the company will be made up of chevrolet, catd lack, buick and gmc and a minority stake in general motors europe, but aren't t

el restante 10% será acreditado a lo que se llama la vieja general motors.público consumidor se vuelva hacia esta empresa y nuevamente adquiera productos, productos que ha visto y para nada son distintos a lo que kenianos antes que la compañía entrara en bancarrota. >>> los clientes pueden realizar ofertas en subastas de vehículos por para la internet. en páginas como ebay y podrán comprarlos directamente. se trata de recuperar la confianza de cliente como benjamín, quien fue propietario de un carro hecho por la general motors, hace años. >>> comprar un carro de la general motors. >>> si da precios, sí y ttsi... >>> el año 2015 es la fecha que el gobierno le concedió a general motors para pagar su deuda de alrededor de 50 mil millones de de dólares. la compañía dice estar confiada en que podría ser este pago, incluso antes de la fecha prevista. pero algunos analistas económicas no comparten la misma confianza. en queens new york. univisión. >>> tiempo de u pausa y una lluvia de balas sacude a varias ciudades mexicanas en las última horas veremos lo que pasó.

hoy, comenzÓ a operar la nueva general motors.el vaticano, el papa le regala al presidente obama un libro sobre el rechazo de la iglesia catÓlica al aborto. futuro matÓ a una persona en las corridas de pamplona el director tÉcnico de la selecciÓn mexicana ofrece disculpas por la retirada del pie de anoche. >> es noche del viernes y le estamos la bienvenida a su noticiero. el padre de michael sachs como sospecha que su hijo fue vÍctima de un tour delictivo. se referÍa a las medicinas que tomababal cantante. jaime garcÍa nos dice que la investigaciÓn policial se enfoca ahora en los tratos de retracciÓn. >> pueden tomar entre 2:04 semanas para tener los resultados toxicolÓgicos pero su padre declarÓ que haya algo muy sospechoso en la muerte de su hijo. >> no tiene ninguna evidencia. si existen, por el momento estÁn muy guardadas por la policÍa de los angeles y la dea. >> la reconstrucciÓn de la historia mÉdica de michael estÁn al centro de la investigaciÓn sobre las causas de su muerte. >> el jefe de la policÍa de los angeles confirm

el 10% serÁ acreditado a la vieja general motors.elva rÁpidamente hacia esta empresa y al que quiera productos que para nada son distintos a lo que tenÍamos antes que la compaÑÍa entrarÁ en bancarrota. >> los clientes podrÁn realizar ofertas en subastas de vehÍculos por la internet en pÁginas como e-bay como los podrÁn comprar directamente. se trata de recuperar la confianza de clientes como benjamÍn quien fue propietario de un carro hecho por la general motors. >> ¿volverÍa a comprar un carro? >> si es un buen precio, si. >> el aÑo 2015 es la fecha que el gobierno le concediÓ a la general motors, para pagar su deuda de alrededor de $50 mil millones. la compaÑÍa dice estar confiada en que podrÍa hacer este pago incluso antes de la fecha prevista pero algunos analistas econÓmicos no comparten la misma confianza. >> hablando de dinero. la crisis en california siguen quedando. miles empleados estatales se vieron forzados a tomarse un dÍa de descanso porque el gobierno no les puede pagar. >> quienes hoy fueron a las oficinas del departam

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 designing, building, and selling great cars and trucks and serving our customers. there's nothing that we want to do more than that. a lot of people thought we couldn't move through the 363 sale process as fast as we did. i want to thank everyone involved for truly amaying effort to make it happen. from the gm team, our team of excellent advisers, and most importantly, to the u.s. and the canadian government, the automotive task force and the taxpayers of the u.s. and canada who have been the key part in making this happen. 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 100 days has shown everyone, including ourselves, that a company not known for quick action can, in fact, and indeed move very fast. starting tod

a new general motors that is certainly a lot leaner. half as many brands of cars, 25% fewer employees. chris bury is in detroit again this evening. chris? >> reporter: good evening, charlie. after a round the clock race by bankruptcy lawyers, coffee gave way to champagne today, and here at company headquarters, they celebrated a leaner new general motors. today, gm executives showing off the shiny models they're banking on, insisted the new company will hit the ground running. >> bottom line is, business as we've known it and as we've had it up today, business as usual is over at general motors. >> reporter: a much smaller gm emerged from bankruptcy with blinding speed. steam rolling over objections from accident victims, disgruntled dealers, and others who stood to lose. >> both gmnd the u.s. government wanted this to move quickly. both of them put a lot of pressure on so that it did. >> reporter: the government, now majority owner, gets a new gm. stripped of costly old obligations. instead of eight brands, four. chevrolet, cadillac, b

next, behind-the-scenes of general motors. how did one of the world's most powerful companies and of filing for bankruptcy? and later on oprah, three celebrity chefs and three viewers go head to head to cook up the best sandwich. >> today was a big day for general motors, emerging from bankruptcy with promises to be faster and more responsive to customers. tonight, 20/20 investigation of the rise and fall of general motors. bill joins us with a look -- at what he discovers. >> great to be with you. a fascinating project. >> absolutely, i know this is a loaded question but after your research, what would you say went wrong for gm? >> well, in a nutshell, they got too big and they got too comfortable, and the world really changed around them. it is fascinating to look back at a time gm made half of the cars in this country, half of the driveways have their products. going back froa possible one of two american beauty 2 "18" all had gm vehicles. the company got so bloated and so big as the world changed, they made some money prom

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 designing, building, and selling great cars and trucks and serving our customers. there's nothing we want to do more than that. a lot of people thought we couldn't move through the 360 sale process as we did. i want to thank everybody involved for the effort to make it happen. from the gm team, our team of excellent advisers, and more importantly to the u.s. and canadian government and the taxpayers in the u.s. and canada who have been the key part of making this happen. 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 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

this is the best thing for general motors. it's the best thing for the country.nd we have the to reverse this trend of washington take overs of banks and insurance companies and car companies, then this is the simplest thing to do. so i urge my colleagues to vote "yes" on a motion to waive the budget point of order. i thank the president. i yield the floor. mr. durbin: mr. president? the presiding officer: the senator from illinois. mr. durbin: mr. president, first let me commend my colleague from the state of tennessee for his ingenuity, creativity, not necessarily for his wisdom. i don't agree with my amendment and am going to oppose it. the united states government never wanted to get in the automobile business. president obama has said that. he said he's not going to run these automobile companies. that isn't why i ran for president. what he tried to do is to save some major companies in america and, more importantly, save jobs in america as well. what he tried to do was create incentives for the automobile companies to make some decisions they needed to make

we're going to be talking with ray young, cfo of general motors about the new general motors, the plane, coming up this morning first on cnbc at 10:30. carl and becky, it is a big day here in detroit for general motors. just 40 days after going into bankruptcy, it emerges. now comes the tough part. convincing americans they can still believe in gm. back to you. >> phil, for those who are wondering whether or not this new gm is truly new, how should they take that lutz news? isn't that -- what does that do with the notion of out with the old, in with the new? >> it's encouraging news. >> it is? >> reporter: i know a lot of people will say, bob lutz, a lot of people will say, listen, he's part of the old blood. he was here when they couldn't stop things. fact of the matter is, when you talk with people in the industry, if you went to any other automaker and said, bob lutz is available, you can bring him on in a lead role, he would be snapped up in a heartbeat. he's considered one of the people who has the magic touch in terms of understanding what the public wants. now, having said that,

general motors says it will leave bankruptcy protection tomorrow. tonight, a look at the new, leaner g.m. >> the biggest risk right now is doing nothing because the current economic situation is such that we can't fix the economy without fixing healthcare. >> susie: we talk health care reform with kathleen sebelius, secretary of health and human services. >> paul: from discounters to shops at the mall, the nation's retailers can't seem to shake the recession. its a trend likely to continue as more and more consumers tighten belts. and get down to the business of saving. >> susie: one of uncle sam's biggest investments took a big hit today. shares of a.i.g. plunged, after one analyst said there's a good chance those shares are virtually worthless. >> paul: i'm paul kangas. >> susie: and i'm susie gharib. this is "nightly business report" for thursday, july 9. "nightly business report" is made possible by: this program was made possible by contributions to your pbs station from viewers like you. thank you. 7//& >> susie: good evening, everyone. the co

i come from four generations of general motors family. i would love to say this is going to work and they will pay off the government loan and they'll get back to business, but i don't see anything in the real world that lends itself to that being the case in this situation. eric: they pay off the loan and give the taxpayers back their money, any shot in the world that that's going to happen, and if so, when? >> let me put it in perspective. when they were the most profitable company in the auto industry from '92 to 2002, they made about $30 billion. of that $30 billion, $27 billion was from their finance business, gmac. they made a lot of money in subprime mortgages and mortgages and they don't own gmac anymore, eric. they have a business model that is completely upside-down, analysten, i have a -- and listen, i have a better chance of waking up and being tom cruise tomorrow than we have a chance of getting money back. physically, literally, economically impossible. eric: kevin, he is probably not going to wake up tomorrow and i won't wa

a new general motors is out of bankruptcy in record time. but there are speed bumps ahead. >>> world stage -- from an audience with the pope to a heroes' welcome in africa, president obama stays in the spotlight. but what has been accomplished? >>> dismal discovery -- grief and disbelief as the original coffin of a civil rights icon is found rotted in ruins. >>> and making a difference -- finding a peaceful haven after war with an activity that fits these wounded warriors to a tee. >>> plus, what do you do when your state pays you with an icht ou and your bank says "no thanks." ou and your bank says "no thanks." "nightly news" begins now. captions paid for by nbc-universal television >>> good evening. i'm lester holt in tonht for brian williams. less than two months ago there was a virtual deathwatch over general motors. but billions of government dollars later after what amounts to a pit stop in bankruptcy, gm is tonight free from court supervision. a new gm, if you will, tried to move back into the fast lane with a slimmer look and new way

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 to retire, has been asked to stay on. but the g

. >> the new general motors. it's smaller, but will it be smarter? >>> a presidential trip but no harm done. as the g8 summit winds down, next for mr. obama, a one on one with the pope. >>> and demonstration discrimination. protests grow over alleged racism at a private swim club in suburban philadelphia. >> how they were mad that black people were coming in here and how they didn't want these black people in here. captioning funded by cbs >>> good morning. thanks for joining us. i'm michelle guillen. >>> this is a big day for a smaller general motors. after a 40-day reboot, the new gm is being unveiled with fewer workers, fewer brands, and new owners. you, me, and all the american taxpayers. let's get more from susan roberts in washington. susan, good morning. >> reporter: experts say gm's success now down the road is going to depend largely on its ability to let people know it's a different company and one that will build cars with equal availability or is going to outlast the japanese model. general motors is expected to emerge from bankruptcy lea

general motors emerging from bankruptcy.have the latest. >>> president barack obama wraps up the g-8 summit. he and first lady will finish their stint in italy with the audience, the pope. >>> and in china, a quake leveled several homes but so far few casualties reported. i'm kelly swoope in

we will have a better idea as for what is next for general motors. it will clear bankruptcy in record time. they are in the middle of a sales slump. gm is just one part of the bigger economic picture. a new beginning for general motors. they are expected to exit bankruptcy 40 days after entering it. they are downsizing. they could announce 4000 more job cuts and sales across the industry continued to slide. just out june numbers show consumer spending is down. nearly one in 10 americans are without a job. warren buffett says it may be time for a second stimulus package. >> was sort of like taking half a tablet of viagra and having some can be mixed in. >> we could have created 10 times as many jobs as they have. their plan is not working well. >> nancy pelosi said first stimulus needs time to work. >> i think it needs time to work. >> retailers are now looking towards there is concern that sales may not improve before the critical back-to-school shopping set -- shopping season. philip stewart, abc 7 news. >> thank you. >>> president obama wraps up th

general motors coming out of bankruptcy at a staggering speed. we welcome our power player this hour joe lavorgna. people think the good news is a reflection of a weak economy. >> last week i say was worse. we had serious economic news. employment numbers were terrible. the markets now are finally digesting that report. >> we'll be talking more about that. joe is with us the whole hour. let's get to our market reporters. stocks extending losses after that weaker than expected consumer confidence report. the dow on pace for its fourth straight weekly decline. it stocks, the best performers right now. bertha coombs kicks it off at the new york stock exchange. >> we are watching the dow here to see if it's going to hold that 8100 mark. we've seen a decline this week. part of it has been technical, testing of the s&p. today led by chevron leading energy stocks lower. chevron warning the second quarter that its refining margins have been hit hard by the high oil prices and the dollar weakness. ibm getting a downgrade at goman sachs even as it upgrades

general motors is expected to cut jobs, factories and brands. 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 ye

the chrysler plant closed in december and the general motors plant is closing this month. we also have a big amtrak facility where the repair locomotives and passenger cars. just about a week ago i was at one of the amtrak facilities. amtrak got a lot of money to rebuild cars and refurbish cars. it allowed amtrak to hire 52 additional people in delaware. among those 52 people were a number of folks who previously had been at general motors or at chrysler. it is one thing to talk about these policies at a 30,000 foot level, and something different to be at the ground level and meet the people whose lives are different as a result of these initiatives. we are certainly grateful in delaware. i look forward to learning what we can and bring good ideas back to delaware. >> we will be glad to take any questions. >> can you tell us your opinion about whether the stimulus has been helpful in mississippi? >> it actually resulted in mississippi having a record budget for this fiscal year. we will spend more money this fiscal year than we have ever spent any year in the history of mi

thank you. >> lehrer: general motors entered a new era today. the reorganized auto maker officially ended its journey through bankruptcy. judy woodruff has our lead story report. >> reporter: general motors emerged from the chapter 11 bankruptcy process after just 40 days, and after leaving behind billions of dollars in debts. lawyers labored through the night with a stack of legal documents two feet high. they cleared the way to sell the cadillac, chevrolet, buick and g.m.c. brands, and other assets, to a "new g.m." with the government as majority owner. the company is shedding hummer, saturn, saab, and pontiac, which are being sold or closed down. in detroit, g.m. chief executive fritz henderson said it's a more streamlined company with a "rare second chance". >> g.m. has what it takes to excel, but with no interest whatsoever today in making excuses nor in debating the past. we need to be accountable for this. from this point on, our efforts are dedicated to customers, cars, culture, and paying back the taxpayers. it's about creating value so

and as a result, t public is looking at general motors an say, okay, what chevy ve coming? at's cadillac have out the? they have reintroduce themlves to the american public. that's gng to ke some time. gm entered bankruptcy. nobody wou buy a car from them. the warranties we -- people were uertain about that. now theyntered and exited bankruptcy. has that phenomenon come to pass? >> absolutely. i think, karenessentially that s put on the side as a concern once the president sod up at the white house and said, you ow what, the federal government is gog to stand behindm and chrysler waanties. you' ner have to worry if your car breaks down. if you buy the vehicles, i is not le you're going to be stuck with a vehicle you can get repaired. cee said that, that put th concern to rest. now you have a company, alg with chrysler, they've gone through is so quickly. you n't hear people talking about, well, maybehe resual values on thesvehicles will plumt. chrysler's residl values have incrsed since coming out of bankruptcy. it will be interesting to see the same thing happens wit gener

a new general motors may be just hours away. as the company is expected to exit bankruptcy this morning, 40 days after entering it. gm was once one of the biggest auto companies in the world. now, the u.s. government is the majority sharolder. and downsizing continues. gm's ceo could announce 4,000 more job cuts, as sales across the industry continue to slide. >> really, the story here is for consumers. if you're thinking of buying a new car, i think now is really a good time to take a look. >> reporter: 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. investor warren buffett says it may be time for a second government stimulus package. >> the first smulus bill, seemed to me, was sort of like taking half a tablet of viagra. also having a bunch of candy mixed in, as everybody was putting in things for their own constituency. >> reporter: republicans criticized the first stimulus package. >> we would have created twice as many jobs at half the

. >>> general motors is out of bankruptcy tonight. the company is promising a leaner and greener operation. >> reporter: loyal gm customers aren't hard to find in michigan. >> we all need to get together and support gm, instead of turning our backs on gm. because what is gm? america. >> reporter: general motors is out of bankruptcy and promising to stay out of trouble. business as usual is over at general motors. >> 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

we know we have to change. >> reporter: it will be a leaner general motors. that's for sure, shed ded bill n billions of dollars in drupt and $20,000 of jobs in the u.s. and one executive scheduled to retire at the end of the year, sticking around and taking a larger role in the company, this man, bob lutz taking over marketing and communication and will also begin reviewing general motors advertising plan. when i talked to mr. lutz this afternoon, he made it clear, everything is on the table and he expects to be a disruptive force. >> 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 frontal assaul assault. >> absolutely. >> yes, it does ruffle feathers, i think we're at a stage in the company when we really need to do that. >> reporter: for more on why bob lutz is the key to whether or not general motors can change its culture, become a company that is nimble and respond quickly, check out the blog behind the wheel.cnbc.com. i know you

a new year for general motors. >> the auto giant emerges from bankruptcy but is it stronger? >> i'm sally thorner. >>> back and better than before. general motors exited bankruptcy today and vows to be meaner, leaner, and greener. >> reporter: loyal gm customers aren't hard to find in michigan. >> what is gm? america. >> reporter: general motors is out of bankruptcy and promising to stay out of trouble. >> business as usual is over at general motors. >> ceo rich senderson is a company trying to reproduce. better cars and a laser focus on the corporate customer. >> reporter: the old general motors received a lot of criticism for relying heavily on gas-guzzling trucks and suvs. the new gm says it will concentrate on fuel-efficient models. gm is relying on solid performers, like the chevy malibu. and it's creating some 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. >> reporter: plus, the company that was born decades before the computer era w

. >>> now, it's out of bankruptcy, general motors has to get back to selling cars. one way the company plans to do that is by selling its entire line of cars on the internet. gm is trying to hammer out a deal with ebay, for a pilot program that would initially be limited to california. but could go national if it proves to be successful. 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 sav

general motors driving out of bankruptcy after just 40 days. amazing. coming up, vice chairman bob lutz will be with us telling us how the automaker will be able to return to profitability. what's next after emerging from bankruptcy on the agenda for gm? and then the fda giving approval for eli lilly to sell its new blood thinner drug, which becomes the first real competition to blockbuster drug plavix, which is madd by bristol-myers squibb and sanofi-aventis. we had earnings concerns on wall street on the heels of the latest earnings releases. chevron, of course, issuing a profit and earnings warning. that put some pressure on the oils. we continue to see oil prices moving lower. all of the oils down lower. representing that decline in the dow that you're seeing. exxon and chevron, two dow components. we did of course begin the second quarter earnings reporting season, and alcoa, while it did lose money, did beat analyst expectations earlier in the week. that set a positive tone. next week is going to be a very, very busy week with the likes of general

general motors could become profitable if it didn't have to produce cars and that nobody wants to buy because they are fuel efficient and have a could produce the s.u.v. everyone wants to buy gm could be highly profitable but the federal government isn't about to that it violates its own mileage standard so what will happen is that will produce cars that nobody wants to buy. is not going to be profitable but 60,000 autoworkers were not going to lose their jobs but losing the union memberships and dos is obama's problem so he is going to keep general motors of live at our expense forever and ever. it is going to become just like those industries that the chinese government subsidizes with 40 percent of their budget that produce nothing of any consequence. nobody wants what they make but they employ a couple hundred million and the chinese can subsidizing because it will have a revolution. that is the system that he is bringing to the united states appear ago when he was elected the big thing he cried about was mortgage foreclosures. he has been president for six months. do you know tha

-- >> is an exciting day for general motors.rked the beginning of a new company. >> general motors emerges from bankruptcy. >> 330 million shareholders. >> the new company is more than 60% owned by the u.s. government and a much smaller version of its former self, leaving massive debt and former contracts left in bankruptcy. 27,000 jobs lost and almost 2000 dealerships. gm is also in the process of selling saturn, saab, and hummer,

last friday, a reborn general motors peeled out of bankruptcy far sooner than anyone thought. and shares in g.m. jumped on the news. the only problem is, there are no shares in this new g.m. >> they were buying a corpse when they thought they were buying a baby. >> reporter: finance professor james angel said many would-be investors thought they were buying the new, post-bankruptcy g.m., when, in fact, they were buying g.m.'s cast off parts-- the assets that are still languishing in bankruptcy court and might be stuck there for years. >> many of the online news wires basically said "general motors, gmgmq today emerged from bankruptcy. " so many people thought, ah ha! i can buy stock in the new company now, but it wasn't the new company they were buying. it was the corpse of the old company. >> reporter: when g.m. went bankrupt, its old stock got a new trading symbol-- gmgmq. that confused some investors so regulators have given the old company a new name-- motors liquidation company. the financial industry regulatory authority's john gannon wants everyone to know buying stock

and make sure they've got our jobs 100%. >> workers are hoping consumer spending goes up and general motors can indeed bounce back. >>> what does it mean for the gm consumer? according to many, it's about generating consumer confidence in the brand. gm's bankruptcy only lasted 38 days. a record for such a large corporation. but while that time was short, consumers shied away from buying gm-made vehicles. what does that mean for consumer confidence? auto dealers say in the long- term, a more competitive gm could be great for consumers. >> i think that the tremendous number of dealer cuts that they have propose ready not a good thing, and will not help the company going forward. we're in the process of trying to resolve that. but from a consumer standpoint, i think you will see a much more competitive general motors and chrysler for that matter going forward. they have been able to address some of the big issues with regards to cost. >> consumers will continue to benefit from manufacturer's warranties. in addition, kitzmiller's says new incentive programs plus the cash for clunkers should hel

you want to get the government out of general motors, general motors collapses and they owe us $50 billion. is that the right thing to do? >> well, it doesn't operate that way, stuart. basically what the legislation says is that by july 1 of next year that stock has to be sold. we've got to get out of the business of owning a major car company, and the treasury secretary can even extend that a year, if necessary. there's another addition to that that says if you're going to do that again, mr. president, you've got to come to congress and get approval. keep in mind this was done literally over the weekend, and we didn't even find out about it until monday. and when we found out about it, it was a done deal. stuart: would it be most unlikely that g.m. stock would get up in the next year to any point where they could sell it to the public and get the taxpayer money back. i mean, we'd be getting out at a loss surely. >> you know, stuart, as you know, this looks like a situation where taxpayers are going to take a hit on this one because of the president's action. i hate to say that. it pains m

. >> there was a great day for general motors as the struggling automaker emerged from bankruptcy. official declared it is ready to meet the need for car buyers and start making money, something it has not done since 2004. >> after just 40 days -- >> it is an exciting day for general motors. it marks the beginning of a new company. >> general motors emerges from bankruptcy, a new company with new owners. >> 330 million shareholders are the u.s. citizens. >> it is more than 60% owned by the u.s. government and a much smaller version of its former self, leaving many contracts behind in bankruptcy, and starting over with plans to shed plants, 20,000 jobs, and almost 2000 dealerships. they are also in the process of selling saturn, saab, and hummer, and stop producing pontiac. >> i am excited about getting back into the car business. >> but these are tough times in the car business. the company has already suffered decades of market share losses, and must now try to win back the american consumer. >> we will work hard to regain the trust in the money that some money have invested in gm

in my district and general motors didn't.nce i gave it to myself an met with the g.m. people and said please put a plant in my district the today i would like to -- district. tied would like to present it to a real car czar. there is an article about lieutenant general placipa who was the car czar of romania. i ask unanimous consent that following my remarks that this article about what he learned as car czar be included in the record. the presiding officer: without objection. mr. alexander: thank you, madam president. basically he says the united states is far more powerful than great britain was then and no american should be capable of destroying its solid economic base. i hope that the u.s. administration and others will look closely at history and prevent the ought mow motive -- automotive industry to not follow the romanian cars. how the president of romania decreed that the ulset parts were to be manufactured at 166 existing romanian factories in exactly parts of the country that corresponded to the voting districts. c

a new general motors may be just hours away. the stimulus package hasn't produced any results.eve there could be more victims after a local soccer coach is accused of soliciting sex from a 14-year- old girl and celebrating the life and legacy of former raven steve mcnair. we'll show you how local fans shared in his nashville memorial. >>> 5:59 now, those stories and much more coming up. first, let's check the weather with justin berk. >> you remember the wake-up window at the bottom of the screen. mostly clear and temperatures running cool. we start off in westminster as we go up on storm center weather net. 58 degrees this morning. pleasant and almost chilly for some of you. 63, a little milder clotser to the beltway. this is northern anne arundel county at glen burnie. we are expecting a sky to turn partly cloudy this

if it couldn't produce the suv's that everyone wants to buy general motors could be highly profitable but the government is not about to let gm violated own mileage standards of what is going to happen is gm will produce cars that nobody wants to buy. it is not going to be profitable but 60,000 autoworkers are not going to lose their jobs. that is not a problem but you losing the union membership and dues, that is obama's problems of the is going to keep general motors a light at our expense forever and ever and ever and is going to become just like this industries that the chinese government subsidizes with 40% of the budget that produce nothing of any consequences. nobody wants what they make but they employ a couple hundred million people and the chinese government can't stop subsidizing them because they will have a revolution on their hands. that is the system he literally is bringing here to the united states. now when he was elected the big thing he cried about was mortgage foreclosures. well, he's been president for six months now. do you know that in the last month, there wer

late in the week last week general motors was able to exit bankruptcy. several bank earnings for the second quarter could have the markets on edge this week. on tuesday, its goldman sachs thursday jp morgan, and mb financial on friday bank of america and citigroup analysts are expecting a mixed bag of 2nd quarter earnings results with some banks likely to report small profits.. and others continuing to report losses... largely because of writedowns on mortgages. i think overall, the tone will remain negative. mortgages are still underwater, people are still defaulting on them.. and banks are not up to date with process of foreclosures which will slow the rate a bit. zacks research analyst eric rothmann points to faulty loan modifications that will continue to present problems for banks... he says many modifications are not effective because there is no change in interest rate or principal reduction...and in some cases.. he's seen minimum monthly payments going up for struggling homeowners... in addition he says commercial real estate will also be a drag

he says that will happen by the end of this month and he expects an ipo with general motors by the firstf of 010, not just 2010 in general. that is very ambitious. that way the government can get out of that with their 61% and we can put it back on to the public to buy the stock so you and i would have a chance to buy the stock as opposed to just owning it through proxy through the united states government so that would be great if they could do that by the first half of 2010. not so sure that is going to happen. that is an awfully quick turnaround to take it back to the public. >> thank you for joining us this morning from new york. have a great day. >>> heading to the west coast now, thousands will be there to see it firsthand. mill i don't understand more will watch around the world as we -- millions more will watch around the world as we take a look live at the staples center in downtown los angeles. just a few hours out from the memorial service for michael jackson. we are there with a preview of what is plned to today. it is now 6:26. and 6:26 is >>> back now at 60 this morning. a

. >> reporter: a mh smaller and hopelly nimble general motors eers its way into an increasingly cpetitive global to market. gone are lgard brands hummer, saab, saturn, and pontia more than 2200 employees. 1,0 dealers and more than a dozen plants. what remains are the cheolet, cadillac, buick, andmc brands. re than 68,000 employees and 4,100 dealers. but deite the streamlining, g.m. has accomplished in bankruptcy, global iight auto analysrebecca lindland says the company is not out of e woods yet. they've been in the hospita and they aren't ing to just

excite day for general motors. today marks the beginning of a new company. >> reporter: general motors emerged from bankruptcy. a new company with new owners. >> frankly, 330 million shareholders, the u.s. citizens. >> reporter: the new gm is more than 60% owned by the u.s. government. and a much smaller version of its former self. leaving massive debt and many contracts behind in bankruptcy. and starting over with plans to shed 13 u.s. plants. 27,000 jobs and almost 2,000 dealerships. gm is also in the process of selling saturn, saab and hummer. and stops producing pontiacs, leaving the company to focus on four u.s. brands. chevy, buick, cadillac, and gmc. >> i'm excited about get back in the car business. >> reporter: but these are tough times in the car business. in the midst of a sales slump the company has already suffered decades of market share losses. and must now try to win back the american consumer. >> we will work hard to repay the trust and money that so many invested in gm. >> reporter: difficult task

they're not the most valuable assets of general motors. >> reporter: cleaning out the attic could takey years but gm boasts of bargains galore at motors liquidation company, including one slightly contaminated golf course. chris bury, abc news, bedford, indiana. >> i guess gm will be clear of all those burdensome contracts. the bottom line is they still have a very tough international market. this is the worst auto market in 26 years. it still will be a strong uphill battle for them. >> that is the news for this half hour. we >> fatal attack. the developing story in indonesia's capital city. >> in the lobby everything was destroyed. >> where two hotels were bombed. >> then family matters. the president's advice for parents. that means putting away the x-box, putting our kids to bed at a reasonable hour. >> during a big address to the naacp. >> a dialling for dollars. experts reveal new ways to save money on your cell phone bill. it's friday, july 17th. >> announcer: from abc news, this is "world news now." >> good morning, i'm john hendren. jeremy is off this morning. >> i'm vinita nai

were general motors' cars. another issue for general motors, they still face big labor costs.they have cut thousands and thousands of wosrkers, but some of the long-time union workers haven't taken as big a pay cut. those are all bill challenging ahead for general motors. >> the ultimate goal is to really turn things around s that possible for gm? what are people saying? >> of course, it's possible, but the first thing is you have to get the product line right so people are buying the volume of cars you need to sell. the ceo now in the hot seat, fritz henderson, has underscored the importance of general motors going back to what it is great at, that is exciting customers. he said if the company can do that with its new product line, and i was talking to him a week ago and he was showingi off all the model he is very genuinely excited about that, if they can do that he said the public perception of this company will change. now it's our responsibility to fix this business and place the condition on a clear path to success without delay. this is a man that wants to move very, ve