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 leaner and greener. >> how that organization unfolds is really going to be the demonstration as to whether or not there will be a new gm or just a smaller, same old gm. >> reporter: the automakers' fresh start will mean 6,000 white collar workers will lose their jobs by october, and some 15,000 hourly employees will get pink slips by the end of next year. the new scaled down gm will focus on four core brands -- chevy, buick, gmc, and cadillac. the company is even consideration a facelift, changing its logo background from blue to green. the government will now own 60% of the company. presid

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 r

we're making advance battery development core competency for the new gm. you can expect the additional news this summer, we've made a number of important announcements, and we will continue to bang the drum, to make sure that we get our job done in terms of advance battery development. in short, the products and technologies we're launching this year and next are clear demonstrations of our long-term commitment to an exciting design, great fuel efficiency and world class quality. these are the cars, trucks, and crossovers that will put us back on the consumer shopping list and the road to profitability and success. finally, we're working to change -- we must change the culture of gm. with a focus on customers, products, speed, accountability, and risk taking. there's a lot of work to do here, we need to start at the top. we have a new board of directors, general motors, led by our new chairman ed whitaker with us here today. i've asked ed to come up and make a few remarks. ed, please. >> all right. in the middle of this transition here now over to ed whitak

after bankruptcy, the new gm made its debut today. it's the new beginning analysts say the carmaker needed. the new company is a stripped down, streamlined version of the original. it has cut its debt from $176 billion to $48 billion, shed 22,000 employees, and dropped from a break even point of 16 million units to 10. gm is also promising to repay $50 billion of federal assistance between the deadline. >> we'll work hard to repay the trust and the money that so many have invested in gm. >> customer satisfaction will be the key to the success of the new gm, experts say. they're launching a new website called tell fritz, where consumers can share their views about their cars. and what does the new gm mean for consumers? 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. but virginia kurts from whitehall says her relationship with gm has lasted for years. she

. >>> a bankruptcy judge has now approved the sale of general motors' assets to a new gm. christine romans joining us from new york to explain what all of this means for taxpayers and then, of course, the gm customers. hi there, christine. >> the judge says there was no other choice. he said he had to approve the sale of these good assets to the new gm, otherwise he'd be facing liquidation and that would hurt everybody. the only alternative is liquidation, a disastrous result for gm's creditors, employees, suppliers who depend on gm for their own existence. so what's happening here? taxpayers will get 60% stake in the company, this new gm would have four benchmark brands, chevy, cadillac, gmc, and buick, everything else will stay in bankruptcy, sold, liquidated, could take a couple of years to get rid of that stuff. it will mean for retirees, lower benefits, those very rich benefits of the past would be gone and this is moving ever closer, a victory really for the obama administering, the obama treasury department. this is moving more quickly than they had promised. the jud

. >> 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 le

it's the new gm.ner, it's meaner, it's more focused and it doesn't have that crushing debt and contractual obligations hanging over its head. it will now do business via just four brands, chevy, cadillac, buick and gmc. get ready for this. aig looking to pay out more bonuses to key executives. "the washington post" reporting government-funded insurer will seek the blessing of president obama's new compensation czar before writing any checks, but indeed wants to pay $2 million in bonuses that created a firestorm a couple months back when word got out that it was paying executives bonuses. >>> the federaludget deficit may be growing, but the nation's trade deficit has hit a nine-year low. the nearly 10% drop comes as exports rose and imports fell, leaving a gap of $26 billion. that's the smallest since 1999. at the same time on the economic calendar, the latest check on consumer sentiment from the university of michigan shows a sharp contraction for july. the preliminary reading there down nearly 10% mo

news." tonight, game on at gm. the automaker speeds through bankruptcy. but can the new general motors ever succeed? >>> the pope and the president. the two leaders meet for the first time. they discuss abortion, stem cell research, and they pray together for senator kennedy. >>> major mess. california's budget crisis keeps getting worse. and banks are beginning to refuse the state's ious. >>> grave injustice. families are furious as four cemetery workers are charged with digging up coffins and then reselling the burial plots. >>> and, the little girl with the artful idea. a 7-year-old is our "person of the artful idea. a 7-year-old is our "person of the week." captions paid for by abc, inc. >>> good evening. in the automotive time trial, gm speed through bankruptcy in just 40 days, coming out today. all lightning fast. but now comes the hard part. with sales down, and drivers demands changing, gm faces considerable challenges. the stakes are high for taxpayers. the government has invested $50 billion, and owns 61% of the new general motors. a new general

gm. >> reporter: the news elicited smiles at one michigan dealership. it was news they said they needed to hear. >> i think we're going to have consumer confidence now. in fact, we've even increased our orders on cars and trucks, and we're increasing our sales staff. >> reporter: such optimism reflects the stunning turnaround at general motors, considering the dire conditions the carmaker faced just a few months ago. >> i just can't help think about what things looked like in december where it was questionable whether gm would survive. >> reporter: customer satisfaction will likely be key to the success of the new gm. in fact, they're launching a new site called tell fritz where consumers can share their views. diana avellar, abc news, chicago. >> now that gm sought of bankruptcy, are you willing to buy? consumer confidence and reliability on the gm brand and warranty protection is the key to bringing people become to showrooms. roosevelt leftwich takes a look at how consumers and others are reacting to the new gm. >> reporter: virginia fell in love for

the new gm is a leaner, more streamlined company with its focus on just four core brands -- chevrolet, cadillac, buick, and gmc. >> our vision is clear, to design, build, and sell the best vehicles in the world. >> the new gm has slashed its debt from $176 billion to $48 billion and cut 22,000 jobs. the ceo says the changes have been painful, but next. >> einstein's definition of insanity, doing the same thing over and over again, expecting the same result. we know we have to change. >> henderson says they plan to repay money ahead of the government's deadline. questions remain over how congress will handle dealers that were forced to close buzz of all of this. >>> some workers at the allison transmission plant in white marsh are a bit nervous still after general motors emerged from bankruptcy protection. local workers say they're still worried about more cuts and people losing their jobs. but the workers at the transmission plant hope the new and improved gm is more profitable. >> i hope we're going to be better, the people will know what is going on. they've got to be wise and make

it will soon be tested on people. >>> get ready for a new gm. e bankruptcy judge approved a plan for the auto maker to create a new company. that way it can get out from under its crushing debt and expensive contracts. a law firm representing people who sued gm, the law firm is appealing provisions of the sale would bar those to make claims against the new gm. >>> stocks tiptoed around the flat line for most of the afternoon. stephanie is here with the final results from today's session. i hope you had a great weekend. happy monday to you, stephanie. >> reporter: i did, richelle. you can tell by my voice. i was at the music fest in new orleans. it was fun and worth it. as far as the markets are concerned, we have early losses, but the investors are saying the economy is not close to recovery yet. the major averages ended the day mixed. the dow rose 44 points and the s&p 500 ended marmgally higher. after three months of a rally, the stocks gave up the gains over the past few weeks over concern that is the rally was too soon and the economy is not

we're making advance battery development a core competency from the new gm. you can expect more news this summer. we have already made a number of important announcements and we will continue to bang the drum to make sure that we get our job done in terms of advanced battery development. in short, the products and technologies we're launching this year and next are clear demonstrations of our long-term commitment to exciting design, great fuel efficiency, and world class quality. these are the cars, trucks and crossovers that will put us back on the consumer shopping list and the road to profitability and success. finally, we're working to change -- we must change the culture at gm. with a focus around customers and products, speed, accountability, and risk taking. there's a lot of work to do here. we need to start at the top. we have a new board of directors, general motors, led by our new chairman ed whitaker who is with us here today. i've asked ed to come up and make a few remarks. ed, please? welcome, ed. >> thank you, fritz. well, good morning. and it's

the ceo introduced the new gm as a company with better cars, a new corporate culture and a laser focus on the customer. but it is still dependent on the government which owns 60% of the automaker now and pledged $50 billion in loans. gm promises to pay it all back but they have a rough road ahead. >> there's never been a successful turnaround in the global auto industry without a focus on the cost and revenue side of the business. you have to do it on both sides. to win, we need to stabilize and in fact grow our business around the globe, in particularly here in the united states. >> old general motors received criticism for relying too much on suvs and trucks and the new gm says it will concentrate on fuel efficient models. the hottest model looks like a gas guzzler from the ' 70 was it has been transformed for the new millennium and they are screaming off the lots. >> reporter: from a starring role in transformers to a star in the transformation of gm, the chevy camaro is smokin'. >> i had one in the old days and i bought a new one. i couldn't afford them when they were old. >> repor

take a look at the new gm. 35% of the u.s. executives, they are going to be leaving this company over the next couple of weeks as they strip out several layers of management. essentially you have a company they say is going to be focused on three things. customers, cars and culture. a lot of skeptics out there and fritz henderson knows they have to win over people who don't believe gm can change. >> we have to prove ourselves. have to see what we do and then see what results we have. that's how we'll prove ourselves. your point is you can't teach an old dog new tricks is true. einstein's definition of insanity, doing the same thing over and over again expecting a different result. we know we can change. >> and there's a lot of change on what it at general motors including this man bob lutz. he will not be retiring. he'll take over marketing. his job is to change customer perception. interesting person to put in charge of that given the fact he can be considered a lightning rod in many regard. the new chairman ed whitaker belie

. >> reporter: on its speedy exit from bankruptcy, the new gm left behind another company containing ll the stuff it no longer wants. the bankrupt old gm is now motors liquidation company. everything must go. >> it's a little like, you know, selling a house that your family has owned for 100 years. you'd be amazed at the things you can collect in the attic. >> reporter: among the rell licks, this golf course in new jersey, built on once contaminated soil, where gm demolished and old factory. >> we believe it's one of the finest nine-hole courses in all of new jersey. >> the new gm doesn't really need to be in that business. >> reporter: much of what's collecting dust and growing weemds at motors liquidation is not exactly beachfront properly. here in bedford, indiana, gm's cluttered garage includes this abandoned pentecostal church. it's among more than 50 properties that gm plans to ditch in this town alone. when toxic waste leaked here, gm had to buy entire blocks of homes. they've since been cleanedp. how difficult is it going to be for gm to sell these properties? >> well, with mo

new gm division's ipo in 2010. a new gm could be ready to make an initial public offering in 2010, a u.s. treasury official testified in u.s. bankruptcy court. if the sale does not close by the july 10 deadline, the government will withdraw its portion of the $33 billion debtor in possession financing for general motors, said harry wilson, a member of the auto task force. we cannot make an open-ended commitment any comments on that? guest: we inherited a general motors and chrysler that were in very deep trouble just at the end of last year. these companies have lost around $70 billion over the past two years. they are hanging by a thread. the president came in and he made a commitment. he was not willing to make an open-ended commitment. he was willing to have taxpayers make them a viable company, but not an open-ended commitment. chrysler has emerged from bankruptcy in record time in his opening production. we're hoping we can do the same with general motors. host: we have taken a camera to flint, michigan. we wi

>> 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 must realize this and be prepared to change and fast. >> change and sacrifice is always hard. i think this time, it's been harder than ever before. >> reporter: only four, core brands survive. chevrolet, cadillac, buick and gmc. so far, this year their sales are down dramatically in a market that's crushing all carmakers. >> gm is getting down to business. >> reporter: the new gm has its work cut out for it. >> the biggest hurdle they particularly have to get over is perception. they have to change people's perception from what they think gm is now, to what gm is trying to be in the future. >> reporter: meanwhile, taxpayers are footing the bill. $50 billion in government financing. >> we certainly have high confidence that no later than 2015, when the loans mature, we will pay them back. and

conference yesterday, gm ceo fritz henderson said the company needs to embrace new businessn order to be viable moving forward. >> 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 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. >> some good news for car enthusiasts. chrysler has decided to keep making the viper sports car. the company had previously said it would sell off the viper business and production would end this year. but in an announcement yesterday, chrysler said it would keep making the v-10 car through 2010 and beyond. pretty pricey. base models of the viper begin at around $9

gm promises to pay it all back but in a rough economy there could be potholes along the way. 9 news now and wusa9.com. >>> and the treasury department released a statement this afternoon crediting gm's restructuring with saving both the automaker and tens of thousands of american jobs. >>> if you ride metro's red line you have to get ready for delays and slowed down commutes. next week the metro board is expected to approve a $177 million overhaul of the red line which starts next year. the improvements were recommended before last month's deadly train crash. the first phase of the project will focus on the portion of the red line between dew point circle and silver spring. trains will single track while that work is being done, mostly after 8 p.m. the work includes -- >>> money brown missed another scheduled court appearance today and james von brunn's attorney said he is not well enough yet. he remains hoppized after being shot in the face by museum guards. he faces a first-degree murder charge in the death of another museum guard stephen t. johns. >>> and the trial is set for the mar

the new gm will be smaller and bring fewer modeling to the car market. they may want to consider hiring 17-year-old andrew loader sometime in the future. this kansas teen has built a street legal electric car. andrew says he was tired of asking his parents for gas money and getting turned down, so he took what money he had, bought an old fort escort from the i couldn't think yard, and a forklift motor online. he combines all this, and he's riding gas free. >> i had to write a letter to mom and her friend convince her not to ground mere or kill me. >> you didn't take an automotives class or electricians class? >> no, i can't even change my own oil. >> andrews escort goes 38 miles per hour and 11 miles per charge. at least he won't be speeding. >>> bet you've never seen a birthday cake like the one we're about to show you. the birthday boy just turned 4 to celebrate the folks at the national zoo whipped up this three tiered concoction made of bamboo, shredded beets, and frozen beet juice. i guess that's where it gets its color. if you were hoping for choco

>> it's not the gm story, it's also economics and earnings. the good news factory, though, gm has emerged from chapter 11 bankruptcy protection after a snappy six-week trip. new reports that aig may be preparing to pay out millions of dollars in bonuses to dozens of top executives. shares tumbling more than 10% right now. it has staged an impressive comeback, quad rupe ling in value since the beginning of this year. >>> oil prices are sliding again, down to $60 a barrel. take a listen to this one. after trying for more than a year to get united airlines to pay for a guitar damaged by baggage handlers, canadian musician dave carol took his case to the internet. his united breaks guitar has gotten over a million hits on youtube. the airlines took notice after that, and they've asked to use the video internally as a training videindividua tool. >> it kind of rubbed me the wrong way that you had to get public attention to get a reaction. >> he was saying he's no longer mad about it, but he's glad everything has been resolved now. >> hopefully he gets his new gu

how that organization unfolds is going to be the demonstration as to whether or not there will be a new gmjust a smaller, same ol' gm. >> the automaker's fresh start means the end of the road for thousands of its employees. 6,000 white collar workers will lose their jobs by october and some 14,000 hourly employees will get pink slips by the end of next year, the new scaled down gm will focus on four core brands, chevy, buick, gmc and cadillac, the company is considering a facelift changing its logo background from blue to green. the government will now own 6 to% of the company. president obama says he is not interested in running the new gm, but his administration is seeking the people who will. rich henderson will stay as gnm's interim ceo. former at&t chairman ed whitaker will be chairman. and product chief bob lutz who was going to retire has agreed  to stay on in a new role. >> i don't think they will come out of bankruptcy and all of a sudden sell a ton of cars but i think they needed to do this restructuring for a long time, and, you know, hopefully things will be okay going forward

while it is the dawn of a new day at gm it will be a long way back to profitability. the government owns the largest block of stock. president obama has put $50 billion on the line to help gm and the federal government is watching like a hawk. drew levinson, cbs news, detroit. >>> the ceo says he will launch a tell fritz website allowing owners and the public to share concerns about the automaker. >>> another nationally-known figure has taken a stand on wal- mart's plan to build a super center near a civil war battlefield in virginia. in a column in the amaneric er spectator actor and humorist ben stein questions the ebb giant retailers decision to build a store within a conditionens shot of the d. rness battle he suggests that l- rtma officials look elsewhere to show the tartreer rehas a heart as wellas a calculator. robert duval and a fi maker and a who's who of historians have taken a stand against the proposed location in orange county. >>> a courtroom appearance did thaenppay for enorjames von brunn brown. his attorneys argue he was too ill to attend. ce-year-old

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. >> thank you. now that gm is out of bankruptcy how will it impact consumers and will some of those previously closed dealerships be able to reopen? we'll have some of those answers coming up for you in our next half hour. >> no complaints about our weather this week. >> but just in time for the weekend a cou

from bankrupt to rehab in 40 days, general motor made a speedy exit from bankruptcy protection, a new leaner gmack in the driver's seat. the automaker says this is down the road, a 20% workforce reduction by year end, a new board in place in three weeks, plans to repay billions in government loans ahead of the 2015 deadline, but the ceo says business as usual is over. >> at the new gm we need to make the customer the center of everything. we'll be obsessed with this because if we don't get this right, nothing else is going to work. >> for now gm survival depends on an additional $50 billion coming from the u.s. government loans. >>> a grave digging scheme at a cemetery in illinois, workers accused of disrespecting the dead for profit. shawn yancy is everywhere at 11:00. >> the scandal got even worse today. another disturbing discovery. the historic black cemetery near chicago is the burial place of civil rights icon emmett till. his gravesite wasn't disturbed but investigators found his original iconic glass top casket resting in a shack filled with possums. >>> a deadly end to the annual runni

whitemarsh plant is part of the new gm. good news for workers at the facility and beyond. >> at the double t diner in whitemarsh business is starting to pick up again. >> people coming back. slowly. >> on tuesday, nearly 250 gm power-train workers returned to their jobs. after a temporary shut down at the plant. for the diner, that meant the return of dozens of loyal customers. >> they bring money. i mean, people have the means to keep the money going. >> gm power-train that makes transition hybrid parts for general motors is one of the area's largest employers. back in may the plant was forced to shut down for two months as part of gm's overall restructuring plan. a plan that came to fruition today as gm announced it is out of bankruptcy and back in business. >> the plant is part of the long-term future of the corporation. and certainly changes have been made to bring the best parts of the corporation and make that part of the future gm. >> while gm begins i its road to success not everyone will be along for the ride. abou

coming up on tonight's cbs evening news, how one small town is affected by gm's efforts e's. it's a whole new neighborhood. the rest of the body is a no brainer. doesn't your whole body deserve excedrin strength relief? >> glor: a brand new gm, mostly owned by the u.s. government is on and running today after racing through bankruptcy in 40 days. to keep afloat, gm has been forced to jettison more than a thousand dealers. one in a town in the middle of illinois has been around since the earliest days of the auto industry, the only dealer generations have known. >> reporter: it's a typical small town in america, planted in the middle of central illinois corn country. a place for the local dairy queen is the social center and buying a car from rust chevrolet is a rich well until now. >> when i talk about new cars it starts to hit me a little bit knowing this is going to come to an end. >> reporter: a family business since 1916, rust chevrolet is one of the dealers forced to close under gm's plan. karen walde says that's when it's begin. >> i could hammer more sales how but that'

new gm getting the green light. a federal judge in new york is allowing the bankrupt car giant to trim down and sell some of its assets saying it's the only way gm can keep on going. >>> tragedy at magic kingdom authorities saying two monorail trains crashed in orlando killing one of the operators of the monorail. it was the train's last run of the night. it happened at 2:00 in the morning. only a handful of passengers on board. a few of them were treated at the scene. disney offered condolences to the driver's family but isn't saying much else about how the accident happened. it's still not clear what went wrong. >>> governor sarah palin stepping down. a shocker to start the holiday weekend. the announcement came on friday. she tried to clear things up on twitter. one conservative is calling her a quitter. the headline grabbing move has some in the republican party lark out. tell you what they are saying 12 minutes after the hour. the gold delta skymiles credit card... from american express... it's the official card

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 brunn might be able to be transported to court later this month. kai, back to you. >> next hearing to be held in three weeks. >>> a

the new gm is a smaller company and less burdened by staggering debt. is out of bankruptcy is good news for blows everywhere even though gm will have to put more jobs. sherrie, what are people saying out there? >> reporter: good morning, kelly. we are out at the transmission plant in white marsh. the people are a bit nervous even after gm emerged from bankruptcy protection. i talked to folks as they were leaving the plant this morning, and many of them say they are nervous about more cuts being made and people losing their jobs. they are worried about retirement and many benefits. some of the local workers hope the new and improved general motors is more profitable. >> they will make sure we have all of our jobs 100% right. >> reporter: workers also hope that consumer spending goes up and gm can bounce back. reporting live on white mar are, sherrie johnson, abc 2 news. >>> 9:47 and looking good so far weather-wise. a couple of clouds fly by and the sun has been up and mostly sunny with 68 degrees and the easterly wind will hold temperatures down pushing

the new gm is expected to reach full operation in 2011. in a week where we get bank and technology earnings - stocks have been gaining for past 2 days - dow up 200 points since monday - are you surprised? i'm very surprised that we have put j.p. morgan bank of america and city group still yet to announce their earnings this week. are very surprised that the race last week losses ahead of these huge earnings reports because everyone is go look at the financial sector and the retail sector to see if this recession is really winding down and starting to contract. i want to go back to the issue with c i t group we know the potential cuts ripple effect of a possible failure by c i t but it doesn't seem to be weighing on the markets. i think the market right now has been so elated by goldman sacks earnings that the c i t bailout is a really affecting anybody right now traders are trading at a or is the note trading pattern although you may not have noticed that all because we have this huge rally since monday but the fact of the matter is trader

the new gm, a smaller network, less debt. cadillac will not be around anymore curato.'re talking about $60 billion, which is an extraordinary amount of money. 60% owned by the u.s. government. they will have a new logo, may be a green background. it could be the face of a safer and cleaner car company. >> can obama deliver on his grand foreign policy vision? and happy birthday, big ben. the london landmarks rings up 150 years. unesco claims that american troops in iraq caused considerable damage to the civilian arm by using it as a military base. >> a helicopter landing pad for u.s. troops in iraq, build on one of the seven wonders of the ancient world. american forces did significant damage to babylon says reports from unesco. there is an american base here for your out after the april invasion in 2003. this was the location of the famous hanging gardens, the city where one of the first legal codes in the world was compiled. but the euan stresses, the damage did not begin when the americans arrived, nor did it end when they left. unesco's us and looting in trading on

president obama says he's not interested in running the new gm but his administration is picking the people who will. 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

to reach this point, the new gm is losing a lot of weight. pontiac, hummer, saab, and saturn will be discarded like old coats. only buick, chevrolet, cadillac, and gmc will survive. some 14,000 hourly workers will be shown the door along with about 4,000 white collar employees by next year. and of nearly 6,000 current dealers, 2,300 will be closed. indeed, gm may even switch logo colors from blue to green to stress an environmentally friendly side. >> they're absolutely going to have to learn a new way of doing business. >> reporter: the deal will cost taxpayers $50 billion, but without the money, gm would have collapsed, and its remaining jobs would have gone down with it, along with a host of suppliers and their workers too. a cascading disaster in the midst of a recession that the white house wanted desperately to avoid. now, as for people who bought cars and trucks from the old gm, the new gm says warranties will be honors for vehicles bought before and during bankruptcy. maggie? >> cbs' dean reynolds. thanks, dean. joining us now exclusi

. >> reporter: the new gm has its work cut out for it. >> the biggest hurdle to get over is perception. they have to change people's perception from what they think gm is now, to what gm is trying to be in the future. >> reporter: meanwhile, taxpayers are footing the bill. $50 billion in government financing. >> we certainly have high confidence that no later than 2015, the loans, we will pay them back. and our objective will be to pay it back early. >> reporter: how quickly taxpayers recover their investment depends on how well the new gm performs. and the ceo fitts henderson told me they expect to break even by next year. bill? >> okay. chris bury from detroit this morning. >>> now, to controversy in suburban philadelphia. a local camp director claims that a group of her campers, mostly african-american and latino kids, were banned from a public swimming club because of the color of their skin. the pool's director says it's from the sheer numbers of the campers. we're joined by a eed by althea. director of that camp. you're joining us via phone. i'm having a little trouble hearing yo

the government now owns nearly 61% of the stock in the new scaled down gm. ewer brands and about 1,900 fewer dealerships. christine romans is here minding your business. >>> and about 20,000 fewer workers. so there will be some who watch this and know they will only be part of the old gm. some 19 plants being closed down. the new gm born this morning, the official announcement coming in about 55 minutes. the company's employees will be told first and then the ceo will have> eastern time to detail what co!xip+hu)s& look like.u/j to try to compete in a market they have lost market share in consistently. we told you about the workers in the plant and that will employ 20,000 people that will not be part of the new gm. many employees will start to see they will lose their jobs over the next few months. and the brands and divisions that will be sold, dismantled, of liquidated, what remains is cadillac, buick, and gmc. this will be the four benchmark brands for this company as it goes forward. this went quite quickly as they promised. and we'll hear more in about 54

. >> we saw with the stimulus the effort to russia and send what can happen if new gm nature legislation. >> many conservative democrats oppose the reform bill. there is a number of potential cost-cutting measures which i think the american people expect before we consider any new revenue. >> some democrats have joined republicans in asking for more time, raising more doubt about whether lawmakers will meet the goal of completed deals for their august 3. >> the white house press secretary defended the deadline, saying nothing gets done in washington without some pressure, but a key house committee counsel to the scheduled markup of the bill today, raising more questions about meeting the deadline. >> now, your 11 weather forecast with john collins. >> a little of our doppler radar. we have been rain-free today. in a little line, it is mostly down two spindles now. -- down the sprinkles now. you can see it is diminishing the intensity as it moves toward the city, but what is left of the cloud and few sprinkles is a quick shower passing over the harbor in about 15 or 20 minutes. a wider vi

a brand-new way for gm.the customer the center of everything. if we do not get this right, nothing else is going to work. it is that simple. martha: how did they do it? going from $176 billion in debt to $48 billion in debt, slimming down, weeding out some of the board members that were the cronies of former ceo rick wagoner. we will bring in the man that has been on this all along. a lot of people look at the things that were done at gm and say, they could have done these things on the run before we gave them $50 billion. >> i just said that to fritz henderson. i was just up and spent some time with fritz henderson. i drank a little bit of kool-aid while i was there. 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 rest

that gm signed the official documents early this morning, transferring the bulk of its assets to a new gm company for the new company will have purebreds, fewer dealerships, and less debt. the u.s. government is now the majority owner of the company agreed the obama administration says it had no -- it has no plans to run the bottle maker. >>> there is a zero tolerance for bus or train operators who use cell phones. there will be fired even for a first offense. the mta says it took the action shortly after the washington metro system may changes yesterday. a spokesperson said the agency will inform its operators' union of the change but will not bargain. >>> officials say in the fall, the number of cases of swine flu will rise again. the obama administration is gearing up to spend $8.5 billion to prepare for a vaccine. they say their target is kept and that shot should be given out in school. >> somehow, the young people are getting preferential affected. the median age of people who are affected with the h1n1 are teens, which is unusual for. >> hospitals will be stretched to the limit. >>

more than half of the new gm is owned by the federal government. >>> a food fight is underway in montgomery county. some outdoor for and vegetable stands along river road may be forced to close. as caroline lyders reports, owners and customers are anger. >> julie brown has shopped at her local fruit stand longer than her daughter has been alive. that i think it is important. i do not want the data come where i have to shop at a grocery store. >> the stands are as popular as ever, not because of the fresh food but because they support local farmers. at a time when the state nes all the help it can get. >> with the economy, we do not need to be out of work. this creates jobs. >> now the state is cracking down. it says several stands are too close to the road and potentially dangerous to drivers and shoppers. it says many stands are on state property and therefore illegal. >> for them to come here after 10 years and suddenly throw a wrench in the gears, it is stressful. them up for this man, with his market off river road, what is most frustrating is he has been licensed by montgomery county f

financial goal. >> reporter: but gm's ceo has a plan to get the automaker back on track. >> at the new gm, we need to make the customer the center everything. and we're going to be obsessed with this, because if we don't get this right, nothing else will work. >> reporter: but gm is far from riding on cruise control. they are expected to cut another 4,000 white-collar jobs, including 450 executive positions. >> very difficult moves, significant sacrifices made by all. >> reporter: and gm is also considering a name change. coming up today on the news edge at 6:00, now that gm is out of bankruptcy, what impact will it have on consumers and will some previously closed dealerships be able to reopen. we'll have the answers for you. >>> also today aig trying to head off a storm of criticism. >> we want to get back to the breaking news for a moment. in leesberg, where wisdom martin is, add davis and valley views avenue where a robbery suspect ran from the store and managed to get into somebody's house and it appears he may have some hostages. wisdom, what do you know? >> reporter: we're here fro

industry experts applaud the news. >> bob lutz is gm's secret weapon. ceos that have never built cars are not a good thing. maybe the -- the business school textbooks say they are, but i'm not one for textbook anything. this is the real world. and experience pays off in the real world. bob lutz is probably the best, most qualified auto executive on the face of the earth today. >> reporter: qualified and controversial. bob lutz is the man who once said global warming is a total crock of [ bleep ]. he stands by that statement, ask yet he's also the driving force behind the extended-range electric vehicle, the chevy volt, and its nonelectric companion vehicle, the chevy ruse, which is expected to get 45 miles per gallon. in the announcement today, ceo fritz henderson said gm deeply appreciates the support and money it's received from taxpayers. the new company will keep 3,600 of its 6,000 u.s. dealerships and, kitty, it will close 14 u.s. plants. >> thanks very much, bill tucker. thanks, bill. >>> joining me now from detroit, michigan, the unretiring bob l

. >> reporter: this is good news from gm. a federal judge approved the company's plan to sell its assets to a new company. the new company would be owned by the u.s. government, the canadian government along with a trust for the uaw workers. effectively what this does, hoda, is it creates two companies. the good gm and bad gm. the good gm is the new gm that will have assets including the cadillac and chevrolet brands and the bad gm is responsible for unwinding that debt while in bankruptcy. the home is that the new gm will be spun out to the public next year. >> all right. thank you so much for that report. >>> and roger federer claimed a record 15th major championship on sunday after beating andy roddick in a five-set more than four-hour marathon. the longest men's grand slam ever. it's federer's sixth title at the wimbledon. what a match. it's now 18 minutes past the hour. let's join the all girl team. >> a sense of power here. no matt. no al. the cat are away and the mice will play. stephanie you are in for al this morning.

another "fox news alert," world of business, get this, gm said to emerge from bankruptcy today. live look at gm headquarters, detroit, michigan, there you go, the ceo will lay out his vision for the new gm in a matter of moments. the quicker than expected exit out of chapter 11 comes only 40 days after the biggest industrial failure in u.s. history. there's the new ceo. good morning, everybody. megyn: company executives have a lot riding on this turn-around, right? don't you want to know what's going to happen with your $50 billion? bill: a new green logo and a highly touted electric car. stu varney leads our coverage. good morning. >> good morning, bill. bill: they're going to sell what, the pontiac? they're going to sell the cadillac and the buick, the pontiac is gone, the hummer is gone. say hello to the chevy volt. >> that's the focus. that's going to be the main focus of the new general motors. the chevy volt is essentially an experimental electric car. price tag, i've heard in the region of $40,000, not on the market yet but coming to a dealership near you in a couple of y

ceo it from z henderson introduced the new gm as a company with three priorities: better cars, a new corporate culture and a stronger focus on the most important person around, the customer. but that company is still dependent on the government which owns 60% of gm and has pledged $50 billion in loans. now gm promises to pay it all back but it may be rough and a long time. >> there's never been a successful turnaround in the global automotive industry without a focus in both the cost and revenue side of the business. you get the have to do it on both sides. to win, we need to stabilize and in fact grow our business around the globe and particularly here, in the united states. >> in addition, he says gm will concentrate on more fuel efficient cars. >>> aig is asking permission this time to handout $2.4 million in bonuses to some of its top executives. the insurance giant drew some intense anger earlier this year when it dished out hundreds of millions of dollars in retension bonuses, just a few months after getting that huge federal bay out. aig leaders are now hoping government approv

. >> reporter: among the relics, this golf course in new jersey, built on once contaminated soil where gmolished an old factory. >> we believe it's one of the finest nine-hole courses in all of new jersey. >> reporter: the new gm doesn't need to be in a golf course business. much of what is collecting dust and growing weeds is not exactly beach front property. here in bedford, indiana, gm's cluttered garage includes this abandoned pent costal church. it's among more than 50 properties the old gm plans to ditch in this small town alone. after toxic waste leaked from its plant here, gm had to buy entire blocks of homes. they've since been cleaned up. how difficult is it going to be for gm to sell these properties? >> well, with more properties coming on the market when we already have an overabundance of homes for sale, it's going to be a little difficult. >> reporter: the attic is stuffed with odds and ends, looking for a used crash test sled? how about an old robot? a shot down factory or two. hardly a gold mine for gm's creditors. >> these assets are not going to produce a lot of money b