we want to ask phil lebeau who just spoke with gm's chairman ed whitaker to get some answers. phil, how are they going to do this? >> they say it's a different gm. a new day here. business as usual no longer around here. the company is leaner. 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 marketi

phil lebeau covers the auto industry for cnbc, he joins us from detroit with more. phil, good evening. >> reporter: good evening, lester. strange as it sounds, going through bankruptcy may have been the easy part of fixing gm. now comes the tough part. winning over skeptical american car buyers. >> an exciting day for general motors. >> reporter: 40 days after declaring bankruptcy, general motors emerges from court protection leaner promising to be a greener company focused on the customer. >> we know we have to change. today is about beginning the change. >> reporter: backed by $33 billion in federal money, gm used bankruptcy to shed $40 billion in debt, start closing 13 plants and cutting 27,000 jobs, including 35% of its u.s. executives. a massive restructuring that ran through the courts with incredible speed. >> this is basically michael phelps in beijing. it's that fast. it's that remarkable. there are almost no words to describe it. >> reporter: downsizing from eight brands to four, chevy, cadillac, gmc and buick, gm is dropping 2,400 dealers across the countr

cnbc's phil lebeau in dearborn, michigan, with more. phil? >> huge day for ford. they beat the street and beat it by a wide margin. look at the 2-q numbers for ford. loss of 21 cents a share, ahead of what the street was expecting. revenue, 2 $1/2 billion more than what was forecast. so with ford within spitting distance of turning a profit, will they change their guidance? uh-uh, ford ceo mulally tell me their on track for profitability for 2011. however, the company is exploring ways to improve the balance sheet. we might even see an equity for debt offering in the future. is theis an indication that for right bring back the jobs that have been cut when it started restructuring in 2007? earlier today on a first on cnbc interview mulally spoke about the prospects of ford once again hiring. >> i think there's a real chance that with our plan to possibly grow forward, we'll be able to offer opportunity for employment again. the real reason is, and you've covered it very well, phil, is the strength of our product line. >> that product line will bolstered by the tour

we have cnbc's phil lebeau with more on the car maker. hello, phil.llish news today. >> very bullish, larry. i think everybody expected ford to do better, not sure they expected them to do this much better than the street was forecasting. take a look at the numbers again, you mentioned a loss of 21 cents a share. of the street was expecting a loss of 48 cents a share. revenue, better than expected, coming in nearly $2.5 billion higher $27.2 billion. after the numbers came out this morning, i talked to ford's ceo allen musclallmulally. and he says we are on plan to meet profitability and cash flow targets. typical. underselling, overdelivering. look at the cash burden. this is impressive. compare this with the third quarter of last year, when they were going through roughly $83 million a year. the $1 billion cash outflow in the second quarter is $11 million a day. a huge reduction for ford. that's why when you take a look at shares of ford, up 200% since the beginning of the year. larry, if you put 10,000 into this company at the beginning of this year

and cnbc's phil lebeau in boulder, colorado with the details. hello, phil.l. >> hello, larry. we hear so much about hybrids and electric cars and fuel efficiency coming that way. well, ford believes you can take the standard internal combustion engine and turn it into this, the new eco boost engine.. it allows you to get eight cylinder performance with using the gas of a six cylinder engine. we had a chance to take it for a spin here in boulder.r. a couple things to keep in mind. one reason they brought it here to boulder to be tested is because the torque stands out. but it's fuel efficiency. 20% more fuel efficient, 15% lower emissions. there -- the key here is that it's turbo-charged and there are about 100,000 turbo-charged cars in the market today. the question is, at another $3,000 -- that's the price for an eco boost engine, will people want to pay that in order to have greater fuel efficiency? ford believes so. >> this is the issue. the psychology is, gas may be cheap now, but i'm going to own this vehicle for three or four years, and i know during that period of time,

phil lebeau, didn't that look like a commercial for phil lebeau ford?on down. >> got the name for it, too. >> reporter: name the price, i'll get you in there. >> thanks so much, phil, from boulder, colorado. when we come back, the editor of "the new york times" book review and week review. mom vo: i can't do his history report for him. mom vo: my job is to give him everything he needs to succeed. mom: that's why i go to walmart. vo: find all the brands those other stores have but for low walmart prices. vo: like dell, hp and toshiba. save money. live better. walmart. has the fastest serve in the history of professional tennis. so i've come to this court to challenge his speed. ...on the internet. i'll be using the 3g at&t laptopconnect card. he won't. so i can book travel plans faster, check my account balances faster. all on the go. i'm bill kurtis and i'm faster than andy roddick. (announcer) "switch to the nations fastest 3g network" "and get the at&t laptopconnect card for free". (announcer) "switch to the nations fastest 3g network" to stand behind

we could see that in the next year. >> phil lebeau live in detroit. stay tuned for his interview in the next hour of "power lunch." >> we just learned about this a little over half hour ago. a bipartisan group of house law makers want president obama to investigate the federal reserve. we are talking three democrats, 14 republicans asking that the fed not be granted any new authority as a result of regulatory reform yet. they want any questions about the fed's role in the b of a acquisition of merrill lynch last december, they want more answers about that deal. they say if it's determined the fed did overstep its authority at that time, it would be inappropriate to grant it new powers. what do you think, joe lavorgna? >> it's scary because the fed has been an independent organization and now they crossed over into the political domain in the sense of working so close with treasury. you have to hope there aren't any smoking guns, embarrassing e-mails that makes it less likely bernanke doesn't get reappointed. if something comes out in the next few mont

phil lebeau is outside headquarters and he has the latest. >> we're a matter of hours away with of when general motors is expected to emerge from chapter bankruptcy protection. we say hours because it's not finalized yet. here is what still needs to happen over the next couple of hours. yesterday, a federal bankruptcy judge stayed the sale of good assets from general motors into a new business. the judge said the appeal has little chance of slowing down general motors from aappearing from bankruptcy. at the press conference at 9:00 a.m., the new chairman of general motors. this will be the first time we've heard from ed whitacre since he was put into the slot of running this company. he's be announcing changes at general motors. they're going to strip out a lot of the bureaucracy and and that includes bob lutz sticking with general motors as opposed to retiring as originally planned at the end of this year. he will stay with general motors in a leadership role that has not been clearly defined yet. but you can imagine given bob lutz' role, his influence within the company, it is going t

. >> we're going to start with phil lebeau. those of you on the -- sorry, those of you on the phone, again if you want to ask a question, please push star1 and we'll cue you in. we will start with phil. >> fritsz, there's an expression you can't teach an old dog new tricks. why should we believe that the new gm will be different, more responsi responsive, more nimble than the old gm? >> well, i talked about a number of changes today. and the interesting thing, phil, if you look at where you spend your time as a leadership team and i think about the last two krae years, the problems that we've been working to solve, we're not all done but we have a huge amount of them behind us. this basically frees us up to spend our time where we need to spend our time, product, customers, brands, winning in the marketplace. in the end we simply have to prove ourselves. we have to see what we do and then have to see what results we have. and that's how we'll prove ourselves. i do -- i think your point is you can't teach an old dog new tricks is

but i do think we have to go to phil lebeau who has information correct me if i'm wrong, phil, regarding >> and alan mulally. >> i just got off the phone with ford ceo mulally and had a chance to talk to him about the second quarter numbers, better than anybody expected on wall street. two things i talked to mr. mulally about. the first one, listen, they're within spitting difference of turning a profit. they say 2011 is the goal. i asked him, do you move that up because you're making so much progress? he said simply we're on target to meet our profitability and cash flow targets, which is to be positive by 2011, although i think wall street has thrown that out the window. wall street is expecting it to happen much quicker. al mulally sticking with when he always does, underpromising and overdelivering. he said he will continue to improve their balance sheet but he will not commit whether there will be another equity offering to raise cash to pay down debt. first on cnbc coming up on "power lunch" with mr. mulally. back with you. >> thank you very much. we'll check in with you a little l

. >>> we'll take a quick break and followed by phil lebeau. some interesting new findings on hybrid cars. l the gold delta skymes credit card... om american express... it's the official rd... of the world's largest airline. and it's the oy credit card... that ens mil on delta. miles that take you... to more places th ever before. er 350 destinations worldwide. switch today. good for a free flight. call now to apply. there's no annl fee for the first year.. anyou can redeem... with no blackout das or seat restrictions. these e just a few of the benits... of carrying the officialard of delta air lines. switch now and yocan earn miles... on delta with your purches: groceries, gas, enrtainment, and more. get up to 25,000 bonus miles... with the gold delta skymes credit card. call 1-800-skymiles apply. this is the official card... of the world's largest airline. >>> alex witt joins us with a roundup of the headlines. i'll bet you talk about yestday at some point, right? >>yeah. we'll see the president first. good mning, joe, an to all of you. fol

the ceo promising for the reinvigorated company, "business as usual is over" but as cnbc's phil lebeaueports, for gm, bankruptcy may have been the easy part. >> an exciting day for general motors. >> reporter: 40 days declaring bankruptcy, general motors emerges from court protection leaner and promising to be a greener company focused on the customer. >> we know we have to change. today is about the beginning of that change. >> reporter: backed by $33 billion in federal money. gm used bankruptcy to shed $40 billion in debt. they're closing 13 plants and cutting 27,000 jobs, including 35% of its u.s. executives. a massive restructuring that ran through the courts with incredible speed. >> this is basically michael phelps in beijing. that fast and that remarkable. almost no words to describe it. >> reporter: downsizing from eight brands to four, chevy, cadillac, gmc and buick, gm is also dropping 2,400 dealers across the country. while it still sells one out of every five cars in the u.s., gm has yet to find a way to stop losing market share. >> they've got to talk to customers the way

. >> reporter: for on the money, i'm phil lebeau. >>> i want to buy an american car, i want to do that right now, but they are not sure how to go about it and which car to go. for a lot of them it's converting from foreign. let's head to north carolina where taj is on the line. you're looking to buy american but you have two choices in mind. >> caller: i'm in the market for a cross over vehicle looking at foreign and american cars i narrowed my choice down to american, the buick enclave or chevy transverse. both currently have great incentives and quality is remarkable. however, i'm a little hesitant to purchase at this time because this is the end of the 2009 season, the 2010s are coming out and i'm not sure about paying new prices for 2009. what should i do. >> these cut inventory for the next year out. a lot of cars on the lot now to drive to you the right decision, we've brought in brian moody road test editor from edmunds.com. we've got the buick enclave, chevy traverse. in terms of cross over they have a lot of appeal. between the two what do you think? >> i would go with the bui

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in a "first on cnbc" interview phil lebeau is tanneding by right now with general motors vice chairman bob lutz. over to you, phil. >> hi, maria. thank you very much. it is a "first on cnbc" interview with bob lutz, vice chair of general motors and somebody who was headed out the door but is now going to stick around and have a chance to shape the future of the company. explain what your new role is here because we've been telling people you're in charge of marketing and communications, but exactly what will you be doing? >> i'll be overseeing the four brands, buick, chevrolet, gmc, and cadillac. so those four brand leaders will report to me, and i'll coordinate the marketing. and at the same time we will integrate communications which we used to call public relations and integrate that into the overall marketing mix. i'll also have creative oversight over design. so if you will, anything that the consumer hears, sees, feels, or anything about general motors and its products will be my purview. and i think it's very interesting to blend these various creative elements and to be able to

. >> i'm phil lebeau, tomorrow watch for boeing's second-quarter earnings, but the foebl us will be less on the numbers that are recorded and more on the company's conference call. specifically what executives say about demand for aircraft around the world especially for the dream liner since boeing announced the delay in june. >> i'm mary thompson and this is what i'll be watching for on wednesday. more financial companies reporting their results including two big banks. morgan stanley and wells fargo. look for the impact of residential mortgages and credit cards on wells fargo, look for the impact on commercial real estate on morgan stanley's numbers. >>> by the way, we'll have the cfo of wells fargo tomorrow on the heels of that earnings release. we'll want to know how the quarter is looking. the banks were down across the board today and that was the one laggard. the rest of the market did pretty well. the oil and technology names were the leadership dwroups on the upside. the dow jones drill average had a pretty good spurt in the final moments of trading to end up 67 points near the

phil lebeau on the airlines. continental cutting workforce. tough results from ual. >> these airlines are going to be flying into an economic storm. keep that in mind as you take a look at results from today. southwest beat the street by a penny, posting a profit of eight cents a share. cautious comment from ceo gary keller. united also did better than expected. eps, 38 cents above what the street was expecting. stock getting a pop on that, up more than 7% today. finally continental one cent below with a loss of $1.36. they say the average fare tumbled 18% last quarter. led by a 24% in transatlantic flights. if you add up the eight biggest carriers, the combined losses total $1.2 billion according to bank of america. we were talking about gary kelly from southwest airlines saying things are going to be tough from here on out, primary because business travel is so weak around the world. that's one of the pressures facing this industry. that's the story with airlines. mike has more when it comes to pharmaceuticals. >> merck made more money than

cnbc's phil lebeau spoke to the new head of toyota's north american division about the road ahead. hil. >> maria, these are the first comments from yoshi inaba the new man in charge of toyota north america since he came out of retirement to take the top job. i met with him this afternoon here in washington, d.c. with a few other select reporters to get his take on where toyota is at. a couple of important things came out of this meeting. first of all, he says that there are some encouraging signs that the auto market is coming back. he is hopeful personally that u.s. sales could hit a rate of 12 to 13 million, an annual sales rate of 12 to 13 million, perhaps within the first year, or the next year, i should say. toyota, in the meantime is replanning the use of its north american plant. it's assessing how the u.s. market will rebound before deciding which plants it's going to keep and potentially some plants it might have to shut down. there's been some discussion about the future of the numi plant that was part of a joint vent yue between toyota and general motors. no decision has

phil lebeau, our reporter joins us from outside of gm's headquarters in detroit. it's interesting they're trying to close a chapter on a company that's not known for acting very quickly in the past. >> it is. the fact they can be nimble and react to other companies. not only to market to different products but in terms of changing perceptions with the american car buyer. they have a tall order in front of themselves. i said it for sometime. going through bankruptcy is the easy part. straighten out the balance sheet. that's the easy part. the tough part is changing perceptions of general motors being a plodding, slow company that doesn't have imaginative vehicles or when they do, it's one and then more boring vehicles. they're going to have to really run fast to change that perception. >> and beyond the per seng, at this point, they've lost market share to ford and to others. they don't have many new models coming it. what is their strategy at this point? they seem to be behind the game. >> as far as the models, they have a product cadence that is far more aggressi

earlier on cnbc phil lebeau asked ford ceo alan mulally if the company is ahead of schedule to return to profitability. >> with everything that's going on in the market and coming back slowly that we reaffirmed our guidance that we would be profitable in 2011 with positive free cash flow also. >> therefore, you're not going to move up the guidance? >> no. with everything we know right now it looks like it's going to be a slow recovery and so i think our guidance is appropriate at this time. >> and the labor department reports initial jobless claims rose by 30,000 last week to a seasonally adjusted 554,000. but the number of americans continuing to collect unemployment benefits fell to 6.22 million, which was smaller than many economists had been expecting, maria. >> you know, scott, last night president obama took his case for reforming the health care system right to the american people in a primetime press conference. but in an op-ed in today's "wall street journal" former council of economic advisers chairman under the first president bush criticizes president obama for not governi

we have phil lebeau waiting in the wings to tell us how the carrier is surviving in turbulent times.l tell you about someone who got a credit card bill you wouldn't believe. how about 23 quadrillion dollars? seriously. >>> and president obama speaking out about his controversial l health care plan. we'll bring you the view there live. "power lunch" coming up. oñ&ñ&j mr. evans? this is janice from onstar. i have received an automatic signal you've been in a front-end crash. do you need help? yeah. i'll contact emergency services and stay with you. you okay? yeah. onstar. standard for one year on 14 chevy models. >>> a lot of people dread looking at their monthly credit card bill, but this is taking it to a whole new level. texas man got the shock of his life when he went online to look at his credit card statement and saw a bill for $23 quadrillion! you want to know what that looks like? here it is. this is what $23 quadrillion looks like.. not me, we'll have graphic in a second. 15 zeros at the ends of it. oh, down below.. that's it. more than 2,000 times the national debt. visa sa

phil lebeau calling the news line..e watched at all. >> well, first off, i'm on vacation so i haven't been watching. second of all, i don't think anybody should be surprised that this program was going to be running out of money this quickly. keep in mind, dealers across the country have been taking preorders for cash for clunkers. this is not a program that has only been going on for a week. yes, officially the government has only been giving out money for a week but you have a lot of dealers around the country who are been taking preorders for three or four weeks. once the government said, okay, money is ready to be handed out, boom, then the dealers went through with those sales. what you have here is a case that i'm not surprised we're seeing them burn through the cash this quickly. let's be honest, you get people a little taste of honey, $4500, they want it. they've taken advantage of that. although it's gone a little quicker than expected, this bodes to that underlying situation when it comes to auto sales. there'

. >> i'm phil lebeau live in boulder, colorado, with the eco boost engine.e. it offers more muscle. but at what cost? we'll explain later on. >> and no more muzzlel here. the nasdaq calling for the first time in eight sessions.. oil is heading higher. we start with matt nesto at the new york stock exchange. matt, any way you slice it, great week. >> no question. greatest week, michelle, that we've seen really since the low in the market coming out of that trough in march. so 6.5% is where we're at now. the dow actually is very close to possibly putting in a five-day sprint.. it hasn't done that in many moons, either.. the s&p a little bit further away from possibly doing it. but it's going to make the afternoon session interesting. our big four earnings reports here today, two of the four are down. bank of america noticeably has slipped into the negative. it was higher for most of the early part of the session. ge having its worst day in six months. scott cohn will tell you more about that in a bit, and mary will fill in the blampgs on the financials, neither of which is doing a lot

cash burn rates slowed and the ceo mulally told phil lebeau, they're on track to hit their target. ford is opening 10% higher. we're going to check out at&t. they're on the move to the upside. at&t was slated to open a couple percentage points higher here. they did well on the wireless side. that's really impressive in the current global environment, especially in the wireless business. even more so they had a record low churn rate, which is key there. it wasn't just apple's iphone lending at&t a hand there. it was on the lower and mid-range level there, too. 3-m is on the other way. up 2%. way above expectations. raised the full-year outlook there. the other dow component reporting that bucks the trend of those beasts that is mcdonnall's. shares is down about 3% or so. june comps were below expectations. and the concern there is that that's going to bleed into july. that's why the shares have opened to the downside. bristol-myers, you heard mike huckman, he knows everything about pharma. he was telling us about the earnings beat. raised the outlook. also buying $2.4 billion in cas

phil lebeau joins us from deerborn, michigan with allen mulal mulally, a first on cnbc interview. >> hi, a big day in deer born, at the headquarters of the company is within spitting distance of turning a profit when you strip out one time items in the second quarter compared with the street expecting a loss of 48 cents. ford ceo's allen mulally joins me live. allen, you know that everybody is now saying, don't wait until 2011 to turn a profit. when can we expect ford to be profitable? can you do it by the fauourth quarter? >> clearly as we shared this morning, with everything going on in the market and coming back slowly, that we reaffirmed our guidance we would be profitable in 2011 with positive free cash flow also. >> therefore, you're not going to move up the guidance. >> no, with everything we know right now, it looks like it's going to be a slow recovery, and so i think our guidance is appropriate at this time. >> i want to show the cash burn rate, because if you go back to the third quarter of last year, you were essentially losing, in cash burn, $83 million a day. you cut th

let's go to fill lebeau, he has the full report. phil, what can you tell us? i know you had big interviews today. >> reporter: it has been a very busy day at gm headquarters today. we'll talk about whether or not gm makes green go carts in the future. the big question is can general motor motors thrive and succeed now that it has a chance outside bankruptcy. the ceo said it comes to changing the culture at general motors and changing the focus to the customer and cars people want. i asked him isn't that trying to teach an old dog new tricks? here's what he had to say. >> we simply have to prove ourselves. have to see what we do and what results we have. that's how we'll prove ourselves. your point is you can't teach an old dog new contribution is true. i pointed out to my management team einstein's definition of insanity, doing the same thing over and over again and expecting different results. 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