New Lease on Life?

" But Washington opera -- to of the country's Big Three auto makers today took big steps to try to ensure their survival under the firm hand of the Obama administration. Chrysler got the green light for its plan to sell most of its assets to Italian carmaker Fiat and an effort to get out of bankruptcy. And General Motors jumped into bankruptcy. Filing for chapter eleven protection and pulling the plug on thousands more jobs senior White House correspondent Major Garrett reports."

" President Obama sounded a bit defensive about his decision to buy 60% of the new GM on behalf of the American taxpayer -- insisting neither he nor his auto task force. Would run the company has just ushered into the biggest bankruptcy in American manufacturing history."

" What I have no interest in doing. Is running GM. GM will be run by private board of directors and management team what they track record in American manufacturing. The reflects a commitment to innovation and."

" but the White House has or will name all but two members of GM's new thirteen member board of directors. And it's auto task force oversaw negotiations between GM and United Auto Workers. For GM to build a new compact car and US factory and for GM to drop plans to import cars from lower cost factories in China. Obama says that he does not want to micromanage the company. Yet. They have been forced partly by the UAW not so much by -- administration. To rescind plans to shift production to China. In a hurry and instead they're gonna make their car here. The deal adds another thirty billion dollars in subsidies to twenty billion dollars taxpayers forked over during the bush -- as GM limped toward bankruptcy. The new company will produce six million fewer cars and trucks lowering its breakeven point to ten million units annually. In the process GM will close eleven factories -- three others by 32. You'll also close three parts and service operations this year. -- will retain the core brands Cadillac Chevrolet Buick GMC it -- seek to sell Hummer and Saturn brand this is a new beginning for GM. It's a reinvention of the corporation there are no second chances we won't need one. And that's our job to deliver auto workers agreed to 20000 job cuts and reductions in pension benefits one labor official defended the fifty billion dollars in GM bailouts."

" We gave Citigroup. Hundreds of billions of dollars and AIG hundreds of billions of dollars with no accountability you want to get that taxpayer money back buy a GM product you'll like it."

" Auto workers received a seventeen point 5% stake in the new company while bondholders holding 27 billion dollars in debt received just 10%. Bondholders can gain a 25% share but only after the new GM stock value of its fifteen billion dollars it's less than 700 million dollars now. Meanwhile bankruptcy judge cleared the sale of most Chrysler assets to Italian auto maker Fiat a mere 31 days after the White House -- bankruptcy in motion. Ends of."

" Of thousands. Of jobs that would have been lost if Chrysler have liquidated. Woman obviously. Expected GM it hopes to emerge from bankruptcy in sixty to ninety days in the meantime the US government will back all of its sales incentives and warranties meanwhile. House Republicans of -- investigation to how the GM bondholders have been treated. -- Major Garrett live at the White House major."