Exclusive Interview

" The Glenn -- program tonight we're gonna start things a little bit bit differently because. There are a lot of important things going on today in America and I want to get right to and everybody else going to talk about Nancy Pelosi we're going to touch on that but. I have to go back to I don't understand this economy that doesn't make sense to me. He is sad is -- for very long time as goes General Motors so goes America. Well here for his first cable news exclusive interview is General Motors CEO Fritz Henderson hello -- Good Glenn how are you very good I want to do before we get into this full disclosure I -- advertising for you on on radio. I am what's called a GM ambassador but I want to be able look my audience in the eye and tell you. I that doesn't mean anything other -- other than me to me other than this I believe in General Motors cars I drive I've had their cars before they were a client of mine I was a client of theirs. I -- the myself I -- a Saturn and a couple of other GM cars. That's it the minute they start making crappy cars are in the olden in General Motors they make great cars. Okay -- so that being said. I am a believer give -- your your welcome I am a believer I'm tired of people saying all Americans don't make good cars they haven't driven and an American car obviously for very long time. However -- that being said. You are now in bed with the federal government we have cars now possibly going to be made by company run by unions. And the government. What kind of nasty Kate -- are looking good to be getting in the future."

" Well Glenn -- neither the UAW nor the UAW Veba nor the federal government has demonstrated any interest in running our business. Wait wait wait and from the product you're going to have. The president just your very your predecessor. I -- that if that's not run your business what is. The to a consumer you know what is General Motors about with the Chevrolet about what the -- about about the product it's about the service of spot. -- their local dealer and it's our job to make sure we deliver that fantastic vehicles."

" Okay. We'll help me out because you have some conflicts had just made before we went on the air just made -- just made -- a note of the people now that are involved in helping you. Quote -- quote. A you have the government. Their agenda is pro union and green it's gotta be green and efficient than he had the unions their agenda is job growth higher wages and legacy costs. On the other side you have the consumer that just wants a good car and a fair price. They have the shareholders that want low costs and high profit. How do you possibly serve all of these masters. How do you -- then birdies."

" We'll start with the customer in the product actually build a way to make it work going to win -- when the business is to get the products right and then frankly sell them to customers make customers it's about excited about your cars take care customers. It when we do that. We can make a lot of these things work and that's the way it starts and that's the way against the but first I have driven I don't know if you know this but I I drove for about a month here hydrogen car. I actually made -- tiny capsule for my children on your hydrogen what is the name of the hydrogen car. It would it was basically an exit at we're not fuel -- okay."

" Fuel cell car it's actually -- he already has said it was it an equinox fuel -- this car is absolutely amazing. And when I was driving -- not only that guy not only did a piece on and on television but I also did a radio and I made eight a tiny capsule for my children and said. This is the car of the future kids it runs on water it's a fuel -- the only thing they have to get right is the battery. George Bush this government. Pushed for hydrogen we're going to be hydrogen this week they just came out and said yeah hydrogen are really not going to work I've driven the great car in the future. They also said they think the Chevy Volt might be too expensive how can you possibly run a company like this."

" First of all appealing to the future customer and having the right to future technologies a critical part of any business including ours. You that you participate in project driveway. It was a validation that fuel cell vehicles are real can be fantastic vehicle that's obviously there are cost issues they could be fantastic vehicles. But it that the cost of that we have to continue to work the cost to get down otherwise it won't be -- it won't be a commercial transactions but we didn't prove the technology. It would respect to the vault we will prove the technology we will launch the vehicle before that before the end of next year. So it's about in our case offering a variety technologies that would be brighter future."

" But. If Fritz when I first started to. Do commercials for General Motors. And I met with all of them and I was being squirrelly I don't know we never met so I don't know if you know -- and my show or watch -- all but I can be squarely. And we were having lunch and I was with a bunch of executives and I -- season a -- like. Come on guys telling what's buried in the basement you know you've got the car that runs on air it's been their since 1956. And I was still live with a and I remember who the executive was that they -- it."

" Off the table and they said this to me mr. back. You know what can General Motors makes the car that runs on water yes we can do we have hydrogen energy we had that since the 1960s. Yes we can. But what we need is leadership in Washington and not pull the rug from underneath us every time we try to do something if they will set an agenda General Motors the people that work here -- in the people who are the imagination and the workers can build apartment I was very serious and I believed him one of the reasons why believe in General Motors is because I've met the people that built the cars and design the cars. But again you now have a government that because he said we can't. Have we can't retool. And then have the government pull away and say oh well no that's not going to work. That's just what they've done to you and I mean don't you think they're going to do that again."

" At least in terms of an alternative propulsion we don't think that's what's been done to us. We think that there is that there isn't an urgent need for energy policy within our country. That's the responsibility of government it's our responsibility to make sure that we offer consumers alternatives and that we have the right technology's ready. For the future that's our job and we're committed to get that job done."

" Okay so you're saying the government. Is not your master. No okay. If the government came in and did what they did to Chevrolet. Are not Chevrolet but two. Chrysler this week where they where the press it was reported -- president. There advertising budget would you say that's maybe stepping over the line or is that appropriate for the I haven't seen that in the constitution that. Is that it does the president have the ability to do that."

" I can't I -- night I got my hands full working for General Motors so I can't speak to Chrysler. I can simply say certainly we're appreciative of the support we've gotten from the administration starting with. Financing frankly we would've made it and -- not received the support. That brings -- their responsibility do the right thing for the taxpayer for investors in GM and so. You know that's we have to get that job done I but I in terms of day to day management business. Now I mean it's about doing the basics doing it well and they're not in they're deciding what what are advertising but should be nothing of the sort."

" But they but they are with Chrysler already. Yeah I guess we you know we just sits on the I was so glad to hear you say that you won't you had a responsibility of the taxpayer. You know I don't know if you know this gives you guys are getting beat up all the time you're getting beat up about your jets and everything and meanwhile these clowns in Washington her flight attendant Joe that. You you do know that but but. You I don't know if you know that the American people. Are behind you is. If you are responsible. -- everything I personally don't want to bail out the car companies. However. Okay great the government just went and and I gave you all of this money. You have a grave responsibility. -- with our money he had you don't at the problem here is is that taxpayers give you the money. But the people in Washington are giving you the rules and those don't necessarily match I don't know a single person infected this -- this morning. Not a single person thinks the government is going to be good at running car companies it's not a good idea. Do you have a do you have. A sense of the American people and the responsibility. That you have."

" If we do the men and women GM immensely are immensely appreciative of the support we've received. It what would otherwise been a complete meltdown of our business frankly we've gotten the support we've gotten hand we've gotten assistance and it's highly unpopular we understand that. So what does that mean we have to do that means we need to get the job that uses is a once in lifetime opportunity to transform our business so that we don't do this again so -- we justify that support. So that if it's alone we pay it back and if it's an investment they get a return on net investment it would become part of the future that's our job that's we have to do what were the mistakes where it's. Well actually I make a lot of mistakes through my career I think most executives do but if you look back. Lower the mistakes of -- I don't know -- General Motors what are the things you say. That was -- in the same -- that we screwed this up this is where we really went wrong. Well they know if you if you basically go from 2007 to where we are now. We we we came out at 2007 with the still weak balance sheet. We've trained we've begun transformer product the portfolio we were transforming our business we have new labor contract here in -- in north of North America. Our businesses around the globe we're growing we're profitable we got our European business to break even we're making money in Asia were making money in Latin America. So there were a lot of things going well. What went wrong one the fragility of our business particularly of our balance she was exposed as we saw 45% decline in volume. So we saw an implosion of demand not only here in our home market but pretty much around the globe. In an expose the weaknesses in our balance sheet. For example. And certainly our liquidity position and we ran out of cash so what went wrong is we were we have we were weekend as we're coming out of -- seven. But we had a -- for the future and then we saw that they said the 45% decline in demand. Over an eighteen month period. And and we are just -- able to withstand that. We were told."

" That you guys couldn't go bankrupt because of all the mom and pop cedar. You know. Suppliers -- that are that are so linked to General Motors. I you know. I personally think bankruptcy is there for a reason I think it would have been -- to that you would have been a blessing in some ways for you -- in General Motors he would have been able to get under a pivotal out from underneath some of these. Legacy costs where that. Where the unions are strangling. General Motors. "

" I would say in terms of the UAW in our unions -- not not just the UAW but the CAW many unions around the world. They've been more part of the solution and part of the problem yes we have significant legacy costs the revenues addressed frankly they're trying to help us address those issues at the same time. For example that any -- groundbreaking Veba agreement in 2007. What would have been thought of five years before so we're trying to find solutions to what is a very difficult problem. I view the unions is more part of the solution and part of the problem. Meet personally."

" Wow okay. The -- go to let me go to the dealerships. I know dug in Dick Norris -- in fact. Dick work for -- and your father I believe when he first got into dealerships. They're now down in Florida but he started back in the seventies in Fort Wayne, Indiana and he was sales manager and then he got his own. Buick dealership and GMC -- I think there one of the biggest -- dealers down in Florida and they are just good honest decent man. And I saw them. What was it in December I went down and I was in Florida and they have become -- one of my shows. And they were freaking out quite honestly. Because they got every single dime that they have in this dealership they've got families and people that are you know that -- working for them for years and years they do."

" Everything they can to play by the rules and give people a square deal. They found out about Buick being cut. On a phone conference call that was going to the press they didn't even know it and they were devastated by it now they're waiting to find out if theirs is one of the the dealerships that is going to be -- there -- dealerships that are being your partners. All across the country that keeps getting delayed on whether we are going to close going to close going to close. I mean at some point don't you have to just pull the trigger and -- guys you are partners. Here's the news when -- they find out about who's getting close."

" Glenn the first twelve Buick isn't closing view -- as one of the four core brands grew -- market -- We're very honest -- going forward sorry it was funny I apologize for that are okay fair enough no problem. I mean I think in terms of the come to the dealers okay -- you're absolutely right it's incumbent on us did notify dealers. Those the dealers that are going to be witness in the future we need to notify and we're going to begin that process this week in a process basically takes place over the next. -- thirty days and then we need to reach out to dealers -- going to be witnesses say how to we worked together to build our future we need to do both of those things we're going to do them. Basically in the that within the next thirty to 45 days."

" are they going to be if if General Motors goes bankrupt. Are they going to be. -- some of the first in line to be helped with all of the stuff that they are carrying are they on their own you know."

" Well the treatment if we have to go through bankruptcy process. How we handle the dealers is it's a fairly complicated thing. But I would say we're trying to do by getting out today. In the month of may is to begin notifying -- given them advance notice about what's going to happen to them. Are they going to be -- or not. And if not how to -- try to work with them to do it to buffer what is an otherwise extraordinarily difficult situations so. You know that's recommended dealers transparency and let them know where they stand DM."

" The thing with a good look for the government came out of the president's today by the way we as much you know there's any problem the United States government is going to cover your warranty I thought -- good lord what kind of department of motor vehicles driver's license offices and hand me -- new muffler that sounds I got really nasty idea. What happens if some -- about buying a new car and everybody's like well they might go bankrupt what what what does that mean the average person about. What what does this mean I don't want to get my mufflers from the United States government."

" I -- I can assure you you're not going to go get your muffler is that the department of motor vehicles. So I think what all four -- go far -- yes oh yes I well -- back you can do that you can bag on me I would say a couple things one what that what. We're we're going to get through this climb GM were to get through this our core brands that they get through this or -- we're gonna we're going to get through this and our dealers and their customers or suppliers. They -- going to build a good future what does that mean they did you could be confident with the president said in March march 30 they believe it was as. You can be confident that -- via General Motors car truck. That that the company's going to get through this number one in number to your wards he's going to be honored you're going to be able to service your vehicle can be able to get parts you can be confident that. That was it's fairly extraordinary stay in the very extraordinary statement in his part. If from our part it's our job to make sure that obviously we're delivering the vehicles that the customer wants and I'm quite confident that our dealers will be able to -- a low level service for customers. Are you. Are you going to be in -- importing cars from China now I read that in the paper today. The we we that we don't import chart cut charred cars from China today. We have a very big business in China but our business that China's focus of the China market as you know we we -- where we sell that's been part of our philosophy. When you look at our business plan out through 2013 -- 2014. There is an opportunity to do that but frankly we're in dialogue today -- With labor with the UAW for example of how -- we do this more officially can we build products here. Instead of importing it so I'm not quite optimistic about trying to find solutions for that. And you know but it's really -- needs to be worked out the bargaining table but historically. And and frankly pro respectively the philosophy of building where we sell pace. In Detroit and in sending your moving out of Detroit good -- about moving out."

" Year your landmark building in the -- think it's a renaissance center there in Detroit. And your closing value plants are a lot of your plans this this -- this summer. RR RRM."

" We seen the worst."

" Well. I have a simple philosophy I went when somebody asked -- can't get worse the answer is needs to be yes it can. But I also believe profoundly that it will get better. And I think if you if you cut if you come to work every day understanding that we know we can't get worse so they've made it's you don't want to declare victory too so you don't want to say it's over but you gotta get the job done and what we do you will get better in the and that's my simple philosophy and I absolutely believe it."

" For excite I I have to tell -- and you can believe this or not believe this in America you can believe there -- going to really care. I've had several discussions about whether or not I was going to cancel you as an advertiser that you bet that never happens. Nobody ever says no I don't think that would take their money. But I have decided to stay with you because I have met the people. General Motors I believe in the products that I have seen that are coming down the line. Please sir. Please. Keep in mind as goes General Motors so goes America. Don't allow all the cars to be designed or to be micromanage. By the class homes in Washington. Please I believe -- you. Because I believe in the American people we can do it. But not with the people telling us what to do entrepreneur -- dreamers can do it and I know you've got buildings full of dreamers. Please fight for those people -- Those people are going to deliver the kind of cars and trucks splendid eggs that exactly the kind of cars and trucks that you want to thank you sir appreciate it from general general --"