phil lebeau was there, and filed this report. >> here's the paris air show, a lot of attention being given to the battle between boeing and airbus, when it comes to supremacy and wide bodied planes. boeing has long dominated the market, it has about 6 o% of that market, with the first flight of the a-350 here in france on friday. a lot of people are questioning, how much can the a-350 help airbus cut into boeing's lead? the ceo of airbus tells us, he believes they can get at least half the wide body market. >> we will get at least 50% of the market of 6,000 aircraft over the next 20 years. our family is in better position. and we have three members. the biggest one will go into service in 2017, forces boeing to launch the greater version of its own. so i think that the battle will be tough, i have a lot of respect for our competitors, we'll no longer be alone. >> boeing is not sitting still when it comes to wide bodies. it will be announcing the launch of the 787-dx. this is the largest version of the dream liner. boeing ceo says there's plenty of interest already for this large drea

phil lebeau has more. >> more boeing 787 dream liners enter service around the world, there are more questions about what kind of data and performance metrics boeing and the airlines are hearing back from those planes as they're making those flights. that's why we're here in the control center, where a half dotz analysts are monitoring dream liner flights around the world 24-7. a number of the dream liners are flying over in europe right now, some more flights up here, this is the most interesting chart in the room. up here is every single dream liner that's flying, and it's color coded in terms of whether there's a problem with the flight. green means there's no problem. and most of the time there's a red mark up here. there's a problem with the plain that might need maintenance. the whole idea is to have constant data and feedback for the planes coming in here for analysis. there were two flights that were diverted last week, due to an oil leak issue. a number of people were wondering, did boeing know immediately what the problem was? turns out they did know. and they were in const

phil lebeau reporting for us. following the money as prosecutors circle the founder of that fund. >> tiler, it's definitely been a rough go for us which expect to lose billions of dollars for us. about $9 billion belongs to the founder but the remaining 6 billion or so is from outsiders. today i'm told that insiders expect to see a significant portion of the remaining four or so billion to be pulled and that, too, is money that will be returned over several quarters. others like chatwood investments and sky bridge capital will stay put. the issue is the legal hot seat. that's after several former employees have pled guilty and others are yet to be tried. sac thought it had alreadily settled the matter with a commission settlement but federal prosecutors who may press forward with criminal charges obviously think differently. >> if they have to sell to meet these redemptions, that could put some pressure. >> the months are particularly out of date for them. they are known for rapid trading both short and long posit

right now, it may be raining very heavily in paris, but that doesn't stop our man on the ground, phil lebeau's talking to raytheon and joins us now. phil? >> reporter: thank you very much, ross. i am joined by tom culligan, ceo of raytheon international. the skies have cleared. that's good news. >> definitely good news. >> reporter: we were talking before we went on, so much attention obviously is focused on the commercial side of the market here, but this show is critical for the defense industry. when you look around the world right now for the defense industry, give me your outlook. >> well, around the world, it's still a strong market. there's no question about it. and even though paris is traditionally known as more of a commercial show, you can see by looking around, there's tremendous amount of defense equipment here. and the companies are all looking to international growth, especially u.s. companies. so there's a real attention to the market here, and then as you look around the world, it's continuing to be a strong market. there's a lot of threat people are reacting to. >> reporter

we'll tell you, plus ryan air's outspoken ceo is with us and phil lebeau in a special boeing command center. phil? >> reporter: tyler, every day there are more than 150 dreamliner flights around the world. here are some of them in the u.s., and every minute there are tens of thousands of pieces of data being fed here to the 787 operations control center. we'll tell you what they are watching and what they are seeing from the dreamliner when "power lunch" returns. [ male announcer ] my client gloria has a lot going on in her life. wife, mother, marathoner. but one day it's just gonna be james and her. so as their financial advisor, i'm helping them look at their complete financial picture -- even the money they've invested elsewhere -- to create a plan that can help weather all kinds of markets. because that's how they're getting ready, for all the things they want to do. [ female announcer ] when people talk, great things can happen. so start a conversation with an advisor who's fully invested in you. wells fargo advisors. together we'll go far. >>> luxury depth store nieman marcus fi

phil lebeau is there with the details.in two minutes time with the dow up 173 points. ♪ [ agent smith ] i've found software that intrigues me. it appears it's an agent of good. ♪ [ agent smith ] ge software connects patients to nurses to the right machines while dramatically reducing waiting time. [ telephone ringing ] now a waiting room is just a room. [ static warbles ] bob will retire when he's 153, which would be fine if bob were a vampire. but he's not. ♪ he's an architect with two kids and a mortgage. luckily, he found someone who gave him a fresh perspective on his portfolio. and with some planning and effort, hopefully bob can retire at a more appropriate age. it's not rocket science. it's just common sense. from td ameritrade. >>> general motors' last trade is up just a fraction at 34.32. the automaker is recalling about 230,000 sport utility vehicles that could be a fire risk. that includes the chevy trail blairs and the gnc envoy. government safety investigators say that that fire could occur even while the vehi

phil lebeau has the story. phil?er: you know, kelly, this is the first flight for surf air. we made it from burbank up here to san carlos. it took a little over an hour. it was an uneventful flight. they'll be doing four of these trips round trip every day. here's the business model. $1,650 a month. that's how much it costs for you to fly all you want. you can only book four flights at a time. if you want, can you fly -- you can fly as much as you want. 150 founding members have paid that fee. they say they have another 4,500 who have expressed interest. the surf air turboprop, the plane seats six people, and you have a fair amount of leg room. the average annual income for a surf air member is $300,000, and we talked to one of those members today, and he says this is worth it. >> if you calculate what your time is worth during the day, if you save multiple hours during the month on waiting and checking in and parking, et cetera, i think it more than can justify itself. >> right now, the route is between burbank and

phil lebeau, thank you so much for that. >> thanks, phil. >> you bet. >>> all right.inutes before the closing bell. the dow is just down 1 point. it was up as high as 52 points earlier in the day. it hit a low of -- >> down 36 points. >> a low of 36. so come back from the lows, down from the highs. >> we continue to zig and zag. and steve has been one of the bigger bulls on this program during this historic rally. even steve is starting to become cautious about this market. when we come back, we'll find out how he says you can protect your portfolio from a potential summer sell-off. >> and our resident bear jeff cox hasn't been in hibernation for long, but he says it's not just stocks overpriced because of the fed's easy money policies. it's every asset class across the board. he explains why. that's coming up next on the "closing bell." >>> could it be, kayla, that one of "closing bell's" bigger bulls has changed direction? steve of asset management has become indeed become more cautious on this market. >> we're going to find out. he joins us along with bob kaiser fr

our phil lebeau joins us from chicago, and, phil i mean with all these fees, there's a reason why the business proposition for these airlines has improved. >> and a reason why they turned profitable in the first quarter. seven of the nine major airlines in this country posted a profit in the first quarter, scott. and here is the reason why. we just received numbers today from the d.o.t. in terms of how much money the airlines took in when it comes to bag fees and reservation change. let's start first off with bag fees. this was the big moneymaker for them. $800 million in the first quarter. that's an increase of 1.85% compared to the first quarter of 2012. delta leading the way bringing in $191 million in bag fees and then when it comes to reservation change, well this is where the airlines are really going to town. $685 million is how much they took in during the first quarter, an increase of 7.9% year-over-year, and delta made even more money with reservation change fees than it did when it comes to bag fees. $198 million. but altogether you take it all together, it's $1.485 billion

i can't wait to hear more from phil lebeau on that story. you showed us the numbers, tyler, and told us it's a volatile day on the street. it is indeed. they are worth another check right now with the dow jones industrial average off 60 points. just off the lows of the session. the nasdaq is off 20. the s&p 500 is off about 6.75. the vix in yesterday's trading session saw enormous range. today it's up another 5% on the trading session, and that's off the best levels for the vix of the day. the dollar, which had swings of almost 3% against some of the major currencies yesterday is down a third of 5% rig-- of a percent, hitting its lowest level since february 20th. bob pisani joins me on the floor of the new york stock exchange. yesterday we saw legendary moves in the currency market and saw big moves on the yield curve as well. what's wall street watching today? >> once again back to the currency issue. it's true, the dollar has been weak against all the major currencies for a number of days now but the one that matters is the yen. that's bec

phil lebeau, thank you. the other stealth mover along with gm is oil. bucks a barrel. let's get now to sharon epperson with the reason why oil is up a percent. >> we did get a rise above the $95 mark earlier in the session. we haven't seen prices this high in about a week's time. of course, the weakness in the dollar is one factor that traders are talking about. but also, you have to remember what occurred yesterday. we got that big, surprising decline in crude supplies. that no one expected. it was the biggest weekly drop that we've seen all year long, and that is another factor that supported oil prices. it's a far different story than when you look in the natural gas market. we saw a much bigger addition to storage than traders were expecting. gnat g nat gas down about 4% on the session. that's the real laggard in the energy session. >> and this move begs the question, why are americans almost yawning in apathy over these prices, when just a few years ago, we were predicting doom over $95 barrel oil? let's bring in cnbc contributor dan greenhouse. da

we've gotten chrysler already and phil lebeau has been on the case. hey, phil. >> hey, carl.umbers from ford, a smidge better. up 14% in the month of may compared to the estimate coming in at 13%. it breaks down cars versus trucks with cars being up 9.4% and the cars being up 17.8% and guy, listen to this number the f-series sales last month up 31.5% and the best may for f-series trucks since 2005. don't forget, coming up at 1:35, we'll be talking at jim farmee and also in charge of the lincoln brand and we'll talk about the strength of the f series pickup trucks and the best made for the f series truck since 2005. guys, back to you. >> you've been covering a lot of brands today on chrysler. ram 24. dodge 23. i know cadillac numbers are out, up 38. you just tweeted the best may since 76. best since 76. you have to go back a ways. those are the kind of cars that jim liked driving around back when he was younger. >> oh, yeah. >> i had a ford fairmount. they make a fortune on the f series, right? >> yeah. oh, yeah. on average and there's basically an average when you talk with a

phil lebeau will be at the paris air show next week. interviews with leading ceos. you can also follow that coverage online at parisairshow.cnbc.com. >>> still to come, india's sold n linked government bonds for the first time in a decade. the next guest says despite the move, gold won't lose its shine for local investor. we'll find out why. i want to make things more secure. [ whirring ] [ dog barks ] i want to treat more dogs. ♪ our business needs more cases. [ male announcer ] where do you want to take your business? i need help selling art. [ male announcer ] from broadband to web hosting to mobile apps, small business solutions from at&t have the security you need to get you there. call us. we can show you how at&t solutions can help you do what you do... even better. ♪ >>> germany's reportedly seeking to delay eu membership talks with turkey in response to the government's crackdown on the recent unrest. turkey's prime minister, meanwhile, met with groups opposed to the redevelopment of a city park in istanbul. protest leaders say erdogan -- this could be a la

phil lebeau. >>> netflix may have lost dora but it's gaining shrek.al with dreamworks could mean for netflix's bottom line. [ shapiro ] at legalzoom, you can take care of virtually all your important legal matters in just minutes. protect your family... and launch your dreams. at legalzoom.com we put the law on your side. [ engine revs ] ♪ [ male announcer ] just when you thought you had experienced performance, a new ride comes along and changes everything. ♪ the 2013 lexus gs, with a dynamically tuned suspension and adjustable drive modes. because the ultimate expression of power is control. this is the pursuit of perfection. it's easy to follow the progress you're making toward all your financial goals. a quick glance, and you can see if you're on track. when the conversation turns to knowing where you stand, turn to us. wells fargo advisors. >>> look at that. it's a little faber report. i didn't know i had one. we'll talk about smithfield. >> strikes when you least expect it. >> never know when drums start to beat. can't be easy being with me. sta

phil lebeau is here. ive display, phil. >> what's interesting is this has the potential to be the kind of technology and service that says a-ha. i do want to buy an electric vehicle, and what we're talking abouted is the possibility of having a new battery swapped in or old one swapped out. they showed how it would work yesterday out in california. tesla says the battery swap is expected to cost $60 to $80. this is going to be offered at super charger stations around the country starting first in california. >> we'll start off on the i-5 corridor in california and the boston-d.c. route on the east coast, and they will be color coded with the superchargers, so as i said, you'll have a choice of faster at the same price or gasoline or free. >> take a look at shares of tesla. keep in mind that today is came out that there's a bill in the new york legislature that would ban sales of teslas and registrations of tesla in the state, so what's interesting, brian and mandy, in new york, this is the latest state whe

. >>> we have to go to phil lebeau with breaking news. >> tyler, this is as situation you don't see oftensputing a recall request from the national highway traffic safety association. we're talking about '93 to '04 grand cherokees, and -- the dispute is whether or not the placement of the fuel tank behind the rear axle is a safety hazard, whether or not it could lead to fatal fires if there is a rear crash, a crash involving the rear of the vehicle. now, chrysler is saying that it stands behind the safety of these vehicles, and that these vehicles met the standards at the time of manufacturing, sergio marshione saying the company stands behind the quality of the vehicles, all of us remain committed to work with nhtsa. what remains unclear here, sue, is what happens next. it looks like we're going into a period where nhtsa and chrysler will have to perhaps have a meeting of the minds to see what can happen next, because you're talking about 2.7 million vehicles, a little unclear what chrysler would have to do if there was an actual recall that took place itches it is highly unusual. i don'

. >>> ford is revealing it's 150 truck series, and phil lebeau is here with us today. >> this is theruck they unveiled. this is the 11th trim version of the popular f series truck. it contains an eco boost engine to drive more efficiency. when you go to a sales floor these days, you will see a wide variety of f-150s. why? they make about a $10,000 profit on sale of f-150s. they see a change in the market right now particularly with what's happening in the real estate markets. >> the whole segment is growing, especially the regular cab and super cab versions for those who work on housing, work on construction, so offering more derivatives in the regular cab and the super cab helps us touch that base even more, but more importantly, another opportunity for us to introduce ecoboost engines. >> while ford is seeing a surge of 21% in pickup sales. this is a hot selling market as you look at shares year to date. they have moved stronger in the last four months or so, so tyler and sue, this is about a hot pickup market expected to continue for the next couple months. >> phil, thanks so much

phil lebeau, kind of a crazy story.> what we're talking about is a highly unusual situation. now, nhtsa sent a letter requesting a recall of 2.7 million vehicles. they sent a number of examples where there were fatal accidents involving rear-impact crashes, 51 incidents were cited by nhtsa. now, what's interesting here is the nhtsa recall request does not recommend a remedy. the issue here is the placement of the fuel tank behind the rear axle. what's unclear is whether they want chrysler to sell people to stop driving these vehicles, move the fuel tank? is there some other remedy that's possibly? chrysler has responded with ceo sergio marchionne sending out a response saying they dispute the request, they will not comply. the company stands behind the quality of its vehicles. chrysler has until june 18th to have a formal response to the recall request from nhtsa. after that, they will likely continue in some form of a dialogue back and forth to see if there's a way to come to a solution on this issue. if they cannot co

phil lebeau has some details. phil?> all the numbers are in and the may auto sales pace, 15.31 million vehicles. that's a little more than most were estimates. most were expecting 15.1, maybe 15.2. may auto aesales an increase of% compared to may of last year. 15.31 million vehicles. that's the pace for the month of may. back to you. >> all right, phil, thank you. >>> now, we've got, what? about half an hour. >> 35 minutes left. >> 35 minutes. thank you for doing the math. to go before the markets close. >> you're new to post nine. i'll show you where the clock is in a second. we're all good. >> 89 points up on the dow. as i mentioned, we are seeing underperformance from the nasdaq in particular which is lower by about a tenth of 1%. s&p trying to hold on to some small gains here. >>> take a look at apple shares down about 16% so far this year. but are there new signs it's bottomed? and is it safe for investors to take a bite out of this one with new money? >>> tesla shares, they're also losing even more steam today. th

phil lebeau, is there trouble in hybrid paradise? >> i don't know if it's trouble, brian.ers -- or at least the mass-market automakers are doing. the volt is now, as you mentioned, with a deal out there for up to $5,000 cash back. that's for the 2012 models. it's $4,000 cash back for the 2013 models. one reason that gm is doing this, volt inventory is now at 140 days. really, that's double the preferred level for the industry. but this is the latest example of electric vehicles having special deals thrown out there. you've got the volt with 5,000 cash back. 259 a month is the new fit ev lease price. that's been cut by a third. and nissan has had huge success with the leaf with a 199 a month deal. that's been out there for more than a month. and since nissan has rolled that out, they have seen sales more than double since cutting the price on the leaf. and at the same time, the leaf is an example of nissan doing this, because they expect record sales for the vehicle this year. how are the leaf sales doing relative to the tessla model s? they've sold over 5,000 vehicles, and

phil lebeau joins us with some eyebrow raising airline news and some eye opening auto numbers. , this first piece of news is one that people are going to look at and say, are you kidding me? they want me to do what? united is now offering subscriptions. one year subscriptions so you can lock in a rate in terms of wanting extra leg room, $499. or guaranteed that you won't have to pay for checked bags, $349 a year. buy into the united club for $500 a year. there are fine print restriks on all of these. united is betting if you do a lot of flying with them, you will become a subscriber. the one year subscriptions are the next frontier in fees. they do come with restrictions as i mentioned. you can customize them in terms of whether you have another travel partner or checking two bags, et cetera. remember, u.s. airlines took in more than $6 billion in fees last year. take a look at shaurs of united. there's no doubt that adding fees and looking for new revenue sources has been lucrative for these guys. shares have had a nice runup along with the rest of the airline stocks. >>> want

phil lebeau is live with the president andrew levy. >> airlines for people who have said i've never flownwhat's the story behind these guys? bringing in andrew levy, president. andrew, this is a business plan that has worked for you guys in terms of serving smaller underserved markets, really kind of markets many people have forgotten with low-cost fare service, correct? >> yeah, that's right, phil. it's smaller communities around the city that have been underserved or unserved, and we fly folks that live in these parts to vacation destinations where they have a great interest in traveling, to and as you mentioned it all works with being able to offer very, very low fares to stimulate demand for travel. >> when you take a look at your guys pre-tax profit margin, easily outdistancing the other airlines, a lot of people look at this and say, well, naturally, because they charge for different fees whether it's baggage or other services, and as a result you're getting about 41.20 in services from other passengers, well above what other airlines are getting, correct? >> that's true. we started

phil lebeau, the a-350, controversial plane. will it be a hit? actually, and not to correct you too much, did take its maiden flight today in paris. toul 0 se is where they made the first flight of the a-350 wb. this is going to be a plane that's essentially going to be countering the 787 dreamliner as well as boeing's 777, and like all first flights, there were plenty of airbus employees there cheering it on from the ground, so the question becomes when you look at the a barb 350 wb, first scheduled delivery next year, how much will it rival the arab bus? they say it's 20% more fuel efficient than what's in the market and 6% more efficient than the dreamliner. over the last year you can see airbus and the parent of airbus it's outperformed boeing. for boeing's perspective it also has news that it's going to be making on monday that it believes is going to get plenty of attention, and that is the launch of a larger dreamliner. this is going to be a 78710 x is what they are calling it at this point. the largest stretch version of the dreamliner. i

phil lebeau will take a look. >>> here's what to watch for in the auto sector in the quarter ahead.ue as the housing market has recovered, pickup sales have been red hot. that's good news for the big three. they'll be able to pick up market share and report strong profitability in north america if truck sales remain red hot this summer. that's your q-3 auto sectornomics. [ male announcer ] my client gloria has a lot going on in her life. wife, mother, marathoner. but one day it's just gonna be james and her. so as their financial advisor, i'm helping them look at their complete financial picture -- even the money they've invested elsewhere -- to create a plan that can help weather all kinds of markets. because that's how they're getting ready, for all the things they want to do. [ female announcer ] when people talk, great things can happen. so start a conversation with an advisor who's fully invested in you. wells fargo advisors. together we'll go far. [ engine revs ] ♪ [ male announcer ] just when you thought you had experienced performance, a new ride comes along and changes ever

phil lebeau is there. he joins us with the preview. there are thousands of pieces of data from dreamliners in flight. right now we have about a half doesn't flying over japan, what are they telling the people here in this command center? we'll tell you about that in a "squawk box" exclusive right after this. how we get there is not. we're americans. we work. we plan. . . >> boeing 787 made an emergency landing over the weekend. phil lebeau has an exclusive inside boeing's 787 center in washington, where they monitor ever 787 flight that takes to the sky. phil. . >> and, brian, there are about 150 to 180 dreamliner flights every day. all of those flights, every single one is being monitored. here is a half doesn't about to be wrapped up in japan. on the world map, you can see all the flights back here. each of those flights, they call them up on this screen here. if there is nothing wrong with the flight, it's green. if there is something that alerting them, it goes to yellow to orange. then if there is a problem, it goes to red. since

phil lebeau has all the details on that. >> good morning, carl.d about. that tesla has lost the initial bid for now to have direct sales in the state of texas. tesla also lost a battle for real estate. remember, the ceo elon musk said he would consider seeking national action in order to ensure direct sales. one of the issues likely to come up at the annual meeting is the model "s" sales are expected to begin in europe next month. and when you look at the united states year to date and ev rates between the model s and the leaf and the chevy volt. and in terms of how investors look at tesla versus nissan. tesla is up 2%. let's look at shares of nissan. it was added to the s&p 500 and s&p 100. that's giving general motors a share as well. we are going to listen to what elon musk is going to say today. i bet he has a comment or two about the decision in texas, not to give them an exemption. >> he's never shy to share his thoughts. thank you for that. why the majority of americans may not have health insurance next year despite obama care. senator joh

one airline now is beating you -- betting that you and phil lebeau will be flying them right now.e'll find out how the trip was, and if this trend could spread to other carriers as welch it's all coming up on the "closing bell." stay tuned. [ male announcer ] when gloria and her financial advisor made a retirement plan, they considered all her assets, even those held elsewhere, giving her the confidence to pursue all her goals. when you want a financial advisor who sees the whole picture, turn to us. wells fargo advisors. yeah... try new alka seltzer fruit chews. they work fast on heartburn and taste awesome. these are good. told ya! i'm feeling better already. [ male announcer ] new alka seltzer fruits chews. enjoy the relief! ♪ [ roars ] ♪ [ roars ] ♪ [ roars ] ♪ [ roars ] ♪ [ male announcer ] universal studios summer of survival. ♪ >>> interest rates continue to move higher. the yield on the 10-year treasury today at 2.23%. just off a recent high. but pimco's bill gross does not believe the fed will do anything anytime soon to continue to raise rates here. >> really interesting

our phil lebeau is live with the ceo of surf air. phil? >> hey, carl. the founder and ceo of surf air and a lot of people are looking at this plane behind us, wade, and what is this all about? >> it is a flat fee subscription airline, and so we are to air travel what netflix is to movies or a country club is to a golf course. >> you are asking people to pay $1,650 a month to fly as much as they want, and is it worth it to fly on this plane between burr banc and the silicon valley? >> absolutely. if you are going back and forth three or four times a month, it is amazing on the price and the specifically on the time that you will save. if you leave your house in santa monica where you live and over to silicon valley, you are four hours door-to-door and us, two hours, and four total hours is amazing what it does for the life and the efficiency. >> and you and i have talked about the long legacy of the failed startups in the airline business and we talked with gordon bethune about surff air and the plans for success and this is what he said. p.t. barnum sai

our newsmaker is boeing chairman and ceo jim mcnerney standing by with phil lebeau at the paris air showoining us in just a moment live. >>> first, andrew has a roundup of the morning's top headlines. good morning. >> good morning to you. leaders of the world's most powerful economies are gathering in northern ireland for a two-day summit. british prime minister david cameron is the host, and he's pushing for countries to share more financial information. leaders there also expected to discuss differences on some of the big issues. syria's civil war, free trade between europe and north america and of course global tax evasion. we'll have a live report from steve sedgwick on the ground in the next hour. >>> unions in turkey, they're on a owuone-day strike over the eviction of protesters from a park in istanbul. police and protesters clashed from sporadically overnight following a weekend of scuffles in the city. nbc's richard engel will join us with the latest in the next hour. >>> also in corporate news this morning, a large activist investor in smithfield foods is pressuring the company

phil lebeau joining was more on that. are they paid in yen or dollars, phil? it? >> well, simon, it works out to $15 million in u.s. dollars, and that is what the pay bonus will be once it is approved at the shareholder meeting which is going on today in japan. there's a number of interesting headlines coming out of the meeting. one of them is from toyota because of the yen, and he says that they will maintain current production, and the board will add three outside members and remember, they said they would add outside members including g.m. executive mark hogan. and take a look at gm or toyota in the united states, and the market share year-to-date. they are the only ones of the top four that are losing market share, and what is interesting here is that you look at why. clearly, there is an inkrecreas for the big three when it comes to pickup trucks, but at the same time, slump in mid-sized sedans here in the united states, and that has long been the bread and butter for toyota, and as a result, the head of toyota here in the united states says that it is un

. >>> phil lebeau is on the phone for us from chicago with more. s announcement from the government got late yesterday, is that a surprise? are they going to go quicker than we thought? >> it's a little bit of a surprise, ross. but not a huge one. i think the government made it pretty clear here in the u.s. that as much as it can, it wants to reduce its stake in general motors quicker than originally mentioned. we've already known for some time and there's been a stead write program in place for the government to manage the rukdz of its gm stake on a steady paves. and that's supposed to happen through the first quarter of next year. but when there have been opportunities, the government has said it will take advantage of them in terms of let's take a big chunk of gm shares and see if we can sell them and the inclusion of general motors and the s&p 100 and 500 at the close of trading today. that is a perfect opportunity for the government to do that. because when you see gm going into the s&p 500, the estimate that injury going to have at least 78 mi

phil lebeau has the full story. >> here in the u.s., may auto sales coming in slightly better than expectedry sales peace expected to come in at about 15.2 million vehicles. when you look at the different automakers in the u.s., all were up about 1 is% to 2%, greater than what the street was expecting. leading the pack, nissan with an increase of 24.7%. we saw double digit gains from ford and chrysler and positive sales coming in from honda, gm, toyota, really, across the board. all of the auto eshg maes reporting better than expected number peps what were driving those numbers in the month of may? it's primarily the strength of the pickup market here in the u.s. in fact, the share of pickups being sold for the overall market up about 1% compared to last year, coming in at about 11.5%. ford leading the pack there with its f-series pickup truck seeing the best sales for the month of may since 2005, ford selling more than 70,000 f-series pickup trucks and gm saw strength in trucks as well as chrysler. all of the automakers say the strength in pickups is coming from small businesses here in th

phil lebeau has more on the story. we'll talk more about that in just a bit, but first about this offering which will commence tomorrow at the close of business at the end of the trading day. the treasury department selling 30 million gm shares. the uawv which has a sizeable chunk of general motors will be offering 20 million shares and it prices after the close tomorrow. why are they doing this after the close tomorrow? that's when it joans the s&p 500 and the s&p 100 indexes and the estimate is by joining these indexes, investors will add in about 78 million gm shares. that's how much is going to be added in to various index funds around the country. it's also estimated by joining the s&p 500, general motors will likely see and there is a good chance if history is any guide, so what happens with the federal government's stake in general motors after this sale? we don't know exactly how much they'll get from this sale, but the bail costs the federal government $49.5 million. the fed rerecovered 30.4 billion. at that ti

phil lebeau joins us with all the details.adowed yesterday. >> it happened last night at the tesla design studio in southern california, and when we're showing you here this battery swap, you're going to say to yourself, doesn't look very visual. and the fact of the matter is it's not. there's a hole in the ground and a robot comes oupt and changes out the battery. the whole idea is it's faster than if you had to go out and fill up a gasoline tank. it only took them 93 seconds to do the battery swap while a car at a gas station that was on the video screen behind the model s, that took more than four minutes. now, the cost of doing this once the system is up and running, going to be probably in the range of $60 to $80. it depends what gasoline is going to cost in a particular region of the country, but tesla ceo says they will make this system available nationwide eventually. >> we need to address the reasons that people are not buying electric cars. so in order to have mainstream adoption, people need to feel that they have t

. >> is morning ford unveiling the f-150 trimmer and phil lebeau got a firsthand look.ntil this fall when it's expected to roll into showrooms but the significance of this event is not so much that there is a new version of the f-150 and by the way, there are 11 trim versions now. but when they unveiled it this morning, what's significant here is that ford is taking its strength when it comes to pickup trucks and leveraging that strength by expanding the lineup. this is it. the new f-150 cretremor. joe hendricks says this is all about taking advantage of a red hot pick cup market. >> with the housing market, construction market, oil industry growing, it's helping drive that end of the segment which is regular cab and super cab versions as well. but we're also seeing growth in the crew cab versions. we're seeing great sales, up 22% so far this year and we expect that to continue. >> i was mentioning ford is trying to leverage its strength in pickup trucks. they have almost 40% of the full-size market with the f-150 to 350s and again they have 11 trim versions. ford has b