. >>> we have breaking news right now from phil lebeau. phil? >> we want to call up a chart of united technologies, cfo there saying that prat whitney engine engines, they're conserving cash and once that statement uttered not long ago, we saw an impact. we should point out with when you're looking at it jet engine sales and services they have a fourth of the market. rolls royce with a fourth and about half the market, the leader is general electric, the aviation group. we checked with ge engines. thank you very much. aviation engines and they say that they have noticed some softness, as well. they can't quantify it but clearly noticing airlines are conserving cash and that's being reflected in them orderinging fewer jet engines. >> i wonder if -- you heard brian shactman talk about utx's ceo say here's the direct sales exposure to greece and spain. you speak with european executives, as well rye right. >> you heard the previous conversation. do you think that, yeah, you know, maybe -- i'm not picking on a name, delta or american or united will

phil lebeau joins us now. when's the disconnect there? counter intuitive. >> considering the age of the vehicles here in this country. i want to go back over the last three years because they hit an all-time high in the spring and when they did that, everybody said, of course. they're a smart recession play. people keep the vehicles longer. they want replace parts an part of that play has to do with this chart here. take a look at the average age of vehicles. there's the line right there in the middle around 1997. 21.5% of all vehicles in the u.s., about 52 million, are older than 16 years, 16 years or older and supports the idea people need parts and then o'reilly coming out yesterday after the bell and saying, you know what? we are expecti ining softer saln june. but this is the second month this queert o'reilly said softer sales and maybe the weather an now people saying, have we seen the end of the run for the auto parts retailers? >> okay. very good question. we'll pose it now and ask when's going on now with michael lasser at ubs an

phil lebeau is live in chicago. phil? >> and tyler, this is the best performance by the airlines in about two years. 86% of the flights arriving on time. top three all over 80%. hawaiian, airtran and delta. the bottom three closer to 81%, 82%. american, united and expressjet. look at the complains of baggage. 2.63 per 1,000 passengers, lowest percentage of complains since they collected data starting in 1987. look at shares of airline index and obviously this is moving higher as oil has retreated a bit but as you take a look at the airline index, up 15% when people say more people carrying on bags, fewer checking bags, i can see why there's fewer complains of baggage. >> thank you very much. i'm coming to chicago next week and keep our fingers crossed. >>> our turn to analyze the analysts. and we are then going to look at them. plus, one giant toy show over in tokyo. it's fun and it's coming up in two minutes. ♪ [ laughter ] ♪ [ female announcer ] each one of us is our own boss. ♪ and no matter where you are in life, ask

phil lebeau joining us for what's happening in terms of signs of life and hopefully the american jobwell. what are we seeing here? >> mandy, this is the beginning of 4,200 people in louisville, kentucky, or in the area of new jobs at a new ford plant, a plant that's been there for a number of years. they got shut it down and got government money to reopen it and opening today. they'll have six different models built in the plant. the key is flexibility. the edge built there initially and up to six types of vehicles and tons of flexibility. the plant employing up to 4,200. on three shifts and we are seeing it with more and more of the plants, especially ones that have been retro fitted or new. there are 83 plants in north america, 22 of them now have either added a third shift or in the process of adding a third shift, that's 40% of the north american auto production. look at ford shares, like the auto stocks in the last year, it's beaten down. that's a sector under pressure despite these improvements in these plants and the increased production. real quick, we mentioned that they had

let's bring in edmonds.com and phil lebeau. talking earlier on about the headlines of gm being one of the few stocks in the green today on some pension news. can you fill us in there? >> essentially general motors has made a major move when it comes to shoring up its pension obligations. this has to do with their salaried employees -- salaried retirees i should say. 138,000 of them. about 36% will get offered a lump sum payment. the bottom line here, mandy, once this is all said and done, gm is going to be lower its pension obligation by about $26 billion. and that's a huge cut into an obligation that runs about $134 billion. they're making headway and getting rid of the one thing that a lot of people are worried about. and that's the pension obligation. >> it certainly explains why gm is up over 1% all the other automakers are sharply lower. jessica, let me get back to you with regards to the auto sales. imagine if you were someone who planned to buy a car in the next few months. tomorrow morning you're sitting there eating yo

the company's annual shareholders meeting just over an hour ago, and sitting down with our own phil lebeau bring in phil as the meeting takes place in detroit. >> good morning. that meeting should be wrapping up relatively shortly. the big overhang is that gm stock is down dramatically, in part because the company has not been able to turn profits into revenue or stock growth. in fact, ceo dan acer son, as the meeting began, talked about the challenge in facing this company. >> dan was ranked number five in revenue. when it comes to profit, gm was ranked 20th. we need to close it gap by extending the margins. >> how will they do that? the company says it's making process right-sizing its operations, also making progress, cost-cutting across the board for a company that's still bureaucratic and too big in many ways, but none of that has transferred into the stock moving higher. take a look at what it's done, down more than 24%, and when you look at the shareholders, the big question is, when will the government eliminate its stake in general motors is it remember the treasury department sti

. >> thank you, brian, let's go to phil lebeau. >> the president of boeing commercial airplanes announced his retirement. he is being relaced by ray conner. he is well known within the company, a smooth transition is expected, so again, mandy and bill, jim is retiring. >> thank you, phil, in the meantime, let's look at our business headlines. two dozen arrested in new york city and wrels for the largest hacker scheme. they exchange credit card, bank, and other private information in private internet forums. and the ftc is suing wyndham worldwide. they say they left to a security breech that lead to 500,000 credit cards being compromised and that resulted in $10 million of fraud losses. the losses edging at about two thirds of a percent. and watch out, facebook, zynga unveiling "zynga with friends." the ceo speaking with us, and he says it takes his company to the next level. >> what we're doing is building a network of players that we can in a scaleable repeatable profitable way, bring new games from ourselves and our partners to that audience where ever they are. >> zynga insures really

a quick channel check with phil lebeau. is is pretty much in keeping with what you have been seeing? >> i'm not surprised by the weakness i don'tened the auto industry. talking about core manufacturing, the latest numbers show a slowdown. not a contraction but a slowdown. we were up in minnesota a week ago talking with a metal fabricating firm there and they said we're noticing to notice softness in the market. more caution coming from their customers in terms of placing orders and demand out there. this is in line seeing from manufacturers around the country. more cautiousness about where the industry is right now and europe is a big part of that and broader economy, as well. brian? >> if something goes south in europe, it affects us, for sure. >>> now the bond market. rick santelli, let me get this straight. equities are up and bond prices. >> yeah. it's fascinating. we see equities up and treasury price up pushing yields down. look from brian's talking about. intraday chart. down about half a dozen basis points. 158. sett

phil lebeau is here. phil, is this going to happen and symbolize -- i'm a little tired. sorry. symbolize the europeans are tired of the problems they're having in europe and decide that america maybe better is the best place to do business? >> first of all, it is going to happen. i have confirmed from sources that airbus will build a plant in alabama. needs to be finalized but it is going to happen. and why are they doing this? a couple of reasons. one you mentioned the problems in europe. it is no secret everybody's seen this over the last couple of years. move over here with the production and manufacturing and you have got a lower cost basis. wages are much more competitive. manufacturing in the u.s. is more competitive than it used to be and closer to north american airlines and broaden out the footprint. you look at airbus, they have had two plants in europe, francer and germany and then china. it makes sense to broaden out to go one other place, the south is where it will be -- the wisest choice and they have a facility down in mobile. employs a couple hundred workers whe

phil lebeau is live in chicago with a big blow for toyota and lexus, phil. >> reporter: it is. they're going to say didn't we have this issue three years ago? it's floor mats and potential pedal entrapment. here's the recall coming from toyota for 154,000 models, lexus 2010, rx 350 and 450h. the federal government says there is the potential for floor mats and pedal entrapment. this was at the heart of the massive recalls back in late 2009. federal government says they saw an increase in the floor mat complaints of models in particular last month that led to the recall today. look at shares of toyota. after the news broke, there was a bit of a dip. not a huge selloff. the shares up more than 2.5% today. some might be optimism of investors of toyota with the portfolio around the world, it is in pretty good shape even with the problems of the yen in japan. today the ceo of toyota was in munich, germany, announcing that toyota and bmw are teaming up in the development of electric cars, fuel cells, sports car. tapping the expertise of toyota with electric cars, bmw with race cars a

phil lebeau has information about may auto sales. >> the sunshine might be diminishing a little bit. it's been calculated at a pace of 13.8 million vehicles. that's about half a million vehicles shy of the estimate which was 13.3 to 13.4. 13.8 is the lowest pace of the year and the pace we last saw in december and has some people saying, do we have to bring down estimates for the full year sales now? some were talking 15 million and others are saying it may be a little optimistic. maria? >> we're talking technicals right now. three major indices that we're looking at and two of the major indices are in direction territory. with the nasdaq each down rich ross is with me. on the fundamental side of things, we have patty in seattle. good to see you. >> hello. >> let's do it. s&p down, nasdaq, do you think further losses this summer? >> actually, what we're seeing, we think this is exactly what bottoms are made of. we're right back where we started. we're testing the key 200-day moving average. we've reached that critical level. if it was just as easy to come in and sell a market, we'd a

fi phil lebeau, i know you interviewed the ceo a moment ago. what did he say?gy they're disclosing. new lithion ion battery to allow it to work at lower extreme temperatures without a heating element and should extend the life of the battery, they expect to produce this in the first half of 2013. potentially, this could be good news with a 123. look at the plant that produces electric batteries in michigan, suffered major loss in the last year because of quality concerns at that plant. last year, a 123 lost $270 million. you look at shares over the last three years, is the a stock that was once trading at $27 a share, now trading at just over a buck. an sec release they filed a week or so ago, they said they were at risk at being a going concern. we asked about the cash concern with ceo earlier today and here's what he had to say. >> we do have a limited cash position today as a result of the quality problem we announced a couple months ago. we have made i believe significant progress adding new cash and going down that path and sit today very resolute we will

let's ask phil lebeau how big the problem is. >> it's potentially a huge problem, and it is a problemor ford and gm in particular. they have too much capacity. for gm and ford they have to adjust as quickly as possible, and they have not decided what they will do because of different clients and countries, and a lot of problems. this will be a drag here for awhile. the fact that they said their international losses will trip l between q 1 and q 2. that's an indication of them deteriorating. >> yeah, do you have any idea of the magnitude of the deterioration? >> no, nobody is sure where the bottom is. the sense is that we're pretty low in terms of overall sales there. but the germans, particularly vol volkswagon being aggressive over there. and that's putting a lot of pressure on them. there's no way of knows where the bottom is in terms of sales over there. >> phil, stay right there, we want to talk about the american jobs that could be hurt by these slumping sales. let's bring in the senior analyst of edmonds.com. do you see american jobs being affected, michelle? >> not right now. t

let's ask our own phil lebeau. how big of a resurgence are we seeing?> not a huge one but we're seeing perhaps an inflection point. let's take a look at a key metric. it's the planned openings versus closings in the united states going back to 1998. that top line there, that's the number of closings and you see that the gap shrunk considerably. in fact, the rate of manufacturing plant closings in the united states is slowing down. just 3.3% of manufacturing plants closed in the third quarter of 2011 but overall we are seeing fewer plants here in the united states. take a look. it's dropped from 372,000 all the way down to roughly 305,000. so, the question now is, what are we seeing in terms of plant openings in they're increasing at about 3% year over year looking at the third quarter of 2011. that's the most recent data l m. evering capacity utilization rate at 78%. that's close to prerecession levels and finally u.s. manufacturers have added about 500,000 jobs since the end of 2009, brian. keep in mind, they lost about $2.3 million looking at the enti

let's go to phil lebeau who has the details. >> tyler, this is a major move by general motors to cut its massive pension obligation. the company announcing it's offering a lump sum payment to 42,000 salaried retirees. the impact of this depending on how many take up the company is that it would be a net charge of $2.5 billion to $3.5 billion in the second half of this year. more importantly it could reduce pension obligation by $26 billion. that's the reason you see a huge spike in shares of general motors. gm retirees have until july 20th to decide on the lump sum payment. guys, this is a major move by general motors to use some of that cash that it has to reduce its pension obligation. guys, back to you. >> all right. phil, thank you very much. this on a day gm reported double digit sales gains by the way. coming up on "power lunch," president obama in golden valley, minnesota, right now getting ready to speak about jobs and the economy. we're going to carry his speech live as soon as he begins. before the break though, according to intrade, president obama's chances of being re-el

phil lebeau is live with more frr wh for what it means. >> reporter: look at the wholesale market right now. over the last three months, they have noticed a drop of 3.5% and seeing it on the retail side, too. go to the lot and see prices down 3.7% according to kelly blue book and expecting prices to drop 6% to 7% this year and there's greater new car supply in the showrooms and people find greater selection. more opportunity to buy. remember the price difference isn't that great between new and used. why not buy new? loans and financing is expanded. easier to get that auto loan and challenging credit and the reason to see new car sales improve and look at the dealer stocks. this is all about churning the market, sue. all of the stocks on a role this year. even if used car prices have peaked, sue, there are a lot of people going in there, they're going to trade in the car at a pretty decent price and the bottom line is we have seen a peak. that doesn't mean it's bad news for the dealers throughout. >> thank you very much. another note with cars, getting more and more gadgets built in to

cnbc's phil lebeau joins us live from chicago with the details on the good news for people down there>> huge news, sue. this is confirmed. we have talked with sources saying boeing is building a plant in mobile, alabama. excuse me, not boeing but airbus. look in the range of 4,000 to 5,000. the alabama plant would be the second airbus plant outside of europe. what will they build there? the a-320 and a number of planes withen the family. they will be built there and keep in mind this is an important plane in the narrow bod low market because you have american placed a large order. u.s. airways flies them. plan to expand the order book and looking at boeing and airbus, in the narrow body, the two sellers, airbus's a-320 outsells the boeing 737. the a320 long been the power horse for airbus and looking at shares see an interesting split here. year to late airbus up. look at the split of boeing and airbus. this is the parent. in the last six months, really been a split here, tyler, with eads up and boeing slightly negative. tyler? >> phil, thank you very much. >>> after the supreme court

phil lebeau is live in chicago with the details. >> we have never seen the quality of vehicles sold inhe u.s. at a better level. this really shows what we are talking about. j.d. power tracks the problems. problems down 5% year over year. the bad news, let's get to that first. the biggest problem remains in-car entertainment, communication systems. report shows that has spiked about 45% in the last 6 years, up 8% in the last year. the good news, however, reporting new cars have fewer mechanical problems and japanese models in particular in the latest report ranked highest in 11 of 21 segments. what are the top five brands, lexus, jaguar and porsche tying for second, cadillac and honda. go to cnbc.com to check out the full list. shares of tesla up today and have been on a move the last month. latest move, goldman sachs says that near term price target of $50 for shares of tsla why the stock up more than 5% today. that's delivered for the first time on friday. back to you. >> thanks, phil. appreciate it. >>> listen. up 23 points on the dow and mr. pisani with us. not just about the fed.

> tesla's new "s" car hits streets today and soon you'll be able to say "look at that s car go, phil lebeauost highly anticipated new car to launch mainly because not only what it says for the electric car industry but tesla. look at the model s, a lot of people are focusing on the price point, between $57,000 and $77,000 and the range and how many miles per gallon the equivalent this vehicle can get. it can go up to 265 miles fully charged but the more important thing, this vehicle as it goes through the manufacturing process, the first delivery starts today slightly ahead of schedule, said they'd do it by july. they have 10,000 ordered. 10,000 or 5,000 test drives, will start with existing customers this weekend but the more important story, the one that wall street is focusing on is what happens with tesla's manufacturing from here? they've already said they plan to deliver 5,000 model ss this year. i talked a few minutes ago with the chief designer at tesla and he says with he we're not only meeting the 5,000, theyre optimistic they can meet 20,000 by next year, that optimism is behind

five-passenger car with slightly more modest price points but will it work and before we get to phil lebeau is going on over there, herb? what are you doing on that chair? >> the chair's very high, i feel a little awkward but it's okay. >> hello up there in your ivory tower. >> that's why we need "behind the street signs." tesla electric fast, hot, pricey, this is what a more -- still expensive car, right? >> it's more modestly priced than the roadster, they're no longer building the roadster. look at the tesla model there are two stories, the car itself which a lot of people will be focused on since deliveries start today, electric car priced between $57,400, $77,400, before the federal tax credit and 85 miles per gallon and 265 miles fully charged. here is the real story wall street is focused on, whether or not beginning today can tesla ramp up deliveries, they're expecting to deliver 5,000 this year, 20,000 next year and a few minutes ago i talked with the chief designer at tesla, he's confident they can beat these targets. >> the 20,000 number is a number that we have talked about for

phil lebeau has more. >> they rallied, take a look what happens happened since the warning yesterdaypectations, up 2 to 2.5%. that's why we're seeing the selloff today, not just with o'reilly, across the board. auto parts lower on softer demand. the reason that's a concern, for sometime wall street has been bullish on this sect or on the idea we have aging vehicles. therefore, these guys are in the sweet spot of the market. take a look at all of the major auto stocks, retail auto stocks, auto parts players over the last three years. all of them have had a spectacular run with the exception of what's happened over the last week to three months. so when lou at this, here is the idea behind aging auto vehicles. experian automotive out with new data. look at this chart, this says it all. 21.5 in united states, 21% 16 years or older. a lot of these vehicles on the road. the idea is, the auto parts suppliers should be in the sweet spot of people wanting to take care of stocks. this spooked investors piling into these stocks over the last three years. >> when take you a look at used auto an

phil lebeau joins us now with a cnbc exclusive with gm ceo dan ackerson, hey, phil. >> hey, joe, i ameting begins and let's talk about what really is the main question a lot of people have when they look at general motors. your stock is down 24%. you and i talked about it repeatedly. are you frustrated and how do you move the stock higher? >> well, first of all, you have both exogenous factors and what will happen in europe, it will get worse before it gets better. i don't know that we've seen the bottom, but another analogy might be we can see the corner. hopefully we've made some progression in europe to right size production to demand. but that's been a drag i think on the industry in whole. on a more of a microeconomy perspective, what's going on inside the company, we have to be happy warriors about this. none of us have came here, none of us that are still here, thought this was going to be an easy transformation from old gm to today's gm. and that i mean to be more fleet, faster, more responsive. >> more nimble. >> more nimble, yes. >> a couple of issues here. let's talk first

phil lebeau will be joining us later with more. >> coty, their filing has crossed, they are looking for700 million. that's what this ipo is valued at today. you never know. the symbol coty. >> where are they going to list? >> good question. give me a minute. >> nasdaq board. >> nasdaq or nyse. >> there you go. >> i ask that question. >> post-facebook what do you do? >> that's why i ask it in the same day you're reading the sec made some demands to the changes of nasdaq's trading system given the glitches we saw over the facebook ipo. the ceo will claim that as a victory and that battle with the nyse goes on. >> coty is not so cool. >> would you have thought thkra would have left the new york stock exchange for the nasdaq? i should check the markets is that what you're saying? >> the markets are going crazy? >> yes. as becky mentioned the futures at the top of the show take a look here. looks like we'll have a big open today off of that news coming out of the eu summit. there's sorkin's fair value board. it looks pretty good. we're looking at a gain of 122 points off the pop. crude oil a

phil lebeau joins us with the latest on that. >> shares of ford getting hammered today.cents on the day. here's the warning the company issued last night. most of it is centered around europe but it's also about overseas business in general. the company warning its overseas losses will triple in the second quarter versus the first quarter. now expecting to lose about $570 million. again, most of that coming from europe. the company has said it has not decided to close a european plant. not surprisingly after that warning, in come the warnings from wall street to steer clear of this stock. morgan stanley is cutting ford's estimate by 30% for this quarter, 14% for the full year. here's the ominous part. it says ford's losses in europe could exceed gm opel. the analyst says ford must reduce capacity urgently. yesterday, bob shanks, the cfo of ford, was asked about that during an interview. he said, we are not going to provide any specifics about our plan for europe, including capacity. it is too soon to say what we are going to do. when you think about what it takes to sust

. >>> to phil lebeau in chicago.news out of the airline second are tore. >> reporter: we have the latest numbers on on time arrivals for the airlines. in april a very strong performance, 86% on time. hawaiian, air tran, and delta above 90%. bottom three, american, united and express jet down to the 81%, 82% range. one other interesting note from the report, the number of complaints regarding mishandled baggage, the lowest that the d.o.t. has recorded since they've been tracking this. something like 2.6 bags missing per 1,000 passengers. want to show you shares of u.s. air. this stock has been on a tear. annual meeting today, our producer caught up with the head of the airline or the american flight attendants' union which, by the way, is pushing for a merger between u.s. air and american. here is what the president of the flight attendant's union for american had to say about a potential merger. >> i firmly believe they should merge and for many reasons. the standalone plan is just the same plan they've been working

phil lebeau is in chicago with more. >> a lot of optimism about the model s.alifornia. that's the old gm/toyota plant. the model s is important for a couple of reasons. people are looking at this car saying with ining will it actup to expectation? people have put down deposits. starting tomorrow through the next 45 days. when you look at the model s, the performance that is expected is impressive even though the price for the vehicle may be higher than some people expect. $57,400 all of the way up to just over $77,000. that's the price point for the model s. remember that's before the federal tax credit. mileage per gallon the equivalent is 89 and range on this vehicle 264 miles when it is fully charged. the more important question for investors, what's going to happen for tesla the company? can it get up to speed as a mass market manufacturer? they'll deliver 5,000 model ss this year and deliver 20,000 next year. when you take a look at shares of tesla, you may say the auto stocks are under pressure. what's with these guys? why is it moving higher? a slew of