SHARE
TRANSCRIPT
| TIME | SPEAKER | TEXT |
|---|---|---|
| 00:00:19 |
|
THANK YOU, SENATOR. LET ME NOW INVITE OUR WITNESSES, IF WE CAN. THE PRESIDENT OF THE UAW, PRIOR ... |
| 00:04:12 |
|
THANK YOU, MR. CHAIRMAN. THANK YOU FOR THE OPPORTUNITY TO TESTIFY TODAY ON THE STATE OF THE DOMESTIC... |
| 00:10:55 |
|
WE APPRECIATE IT VERY MUCH. THANK YOU. |
| 00:11:05 |
|
THANK YOU. |
| 00:11:10 |
|
I APPRECIATE THE OPPORTUNITY TO BE HERE TODAY TO REPRESENT THE FORD MOTOR COMPANY. MUCH OF THE RECENT... |
| 00:16:32 |
|
THANK YOU VERY MUCH. MR. MARTELLI? |
| 00:16:39 |
|
I APPRECIATE THIS OPPORTUNITY TO BE HERE TODAY. I AM ASKING FOR ASSISTANCE TO ADDRESS ONE THING, THE... |
| 00:24:12 |
|
THANK YOU VERY MUCH. |
| 00:24:20 |
|
MR. CHAIRMAN, THANK YOU. I WOULD LIKE TO COMMENT BRIEFLY ON THE STATE OF AFFAIRS AS WE SEE THEM. ... |
| 00:39:30 |
|
THE MOUSE THAT ROARED HERE. YOU DID PRETTY WELL. THANK YOU ALL VERY, VERY MUCH. |
| 00:39:36 |
|
MAYBE A LINE. |
| 00:39:37 |
|
YEAH. LET ME JUST -- LET ME TAKE SOME -- LET ME OPEN UP A QUESTION HERE AND THEN WE'LL MOVE RIGHT... |
| 00:41:44 |
|
OBVIOUSLY WE ALL HAVE CAPTIVE FINANCE COMPANIES IN OUR CASE IT'S 49% OWNED I THINK IT'S FAIRLY CLEAR... |
| 00:42:45 |
|
LET ME ASK YOU, TALK ABOUT SYSTEMIC RISK. WE WERE TOLD HERE THAT WE HAD TO PROVIDE $150 BILLION TO... |
| 00:43:05 |
|
MARME, I BELIEVE THERE IS. IN OUR CASE, FOR EXAMPLE, IF WE WERE TO GO INTO BANKRUPTCY OR FAIL, WE... |
| 00:44:24 |
|
I AGREE, AND MAYBE I'M NOT MAKING MYSELF CLEAR. I'M TALKING BONDS, CREDIT DEFAULTS WATTS, OTHER ELEMENTS... |
| 00:44:54 |
|
THERE IS NO QUESTION THAT THE LENDERS, THE FINANCIAL INSTITUTIONS WOULD BE AT A TOTAL RISK RELATIVE... |
| 00:45:37 |
|
THE ONLY THING I WOULD ADD IS THE MOST SIGNIFICANT RISK WOULD BE WHAT WOULD HAPPEN TO THE ECONOMIC... |
| 00:46:00 |
|
DO YOU WANT TO COMMENT ON THIS? |
| 00:46:02 |
|
WELL, THE ONE THING THAT I THINK IS IMPORTANT FROM OUR PERSPECTIVE, IF ONE OF THE BIG THREE GOES IN... |
| 00:46:16 |
|
LET ME ASK YOU SOMETHING. SOMEONE MENTIONED TODAY THAT IT WAS A PREPACKAGED BANKRUPTCY. IS YOUR ANSWER... |
| 00:46:24 |
|
MY ANSWER WOULD STILL BE THE SAME. I DO NOT BELIEVE IT WOULD HAPPEN SUCCESSFULLY AND MORE IMPORTANTLY,... |
| 00:47:08 |
|
LET ME ASK YOU SOMETHING ONE OF OUR COLLEAGUES RAISED AND I'LL RAISE IT. AGAIN, GOING BACK IN THE... |
| 00:47:59 |
|
I PROBABLY -- BOB AND I ARE RELATIVELY NEW. I WOULD NEVER FEEL QUALIFIED TO COMMENT TOO THOROUGHLY... |
| 00:48:28 |
|
WHAT DO YOU THINK THAT MIGHT BE? |
| 00:48:31 |
|
WE DON'T -- WE CLEARLY DON'T KNOW BUT SEPARATING OUT WHAT HAS HAPPENED BECAUSE OF THE CURRENT FINANCIAL... |
| 00:48:54 |
|
SO, MR. CHAIRMAN, LET ME ANSWER TWO OR THREE POINTS, PLEASE. FIRST OF ALL, HAVING BEEN THERE A YEAR... |
| 00:50:39 |
|
I JUST WANT YOUR COMMENT ABOUT THE 2003, 2004, 2005 PERIOD, IT WAS A PERIOD THAT IN RETROSPECT WAS... |
| 00:52:45 |
|
LET ME RESPECTFULLY SUGGEST AS WELL HERE, IN ADDITION TO -- WE'RE TALKING ABOUT CREDIT AS IF IT WAS... |
| 00:52:55 |
|
SURE. |
| 00:52:56 |
|
INVOLVING -- SO SOME ACKNOWLEDGMENT OF THE FACT THAT WHILE CERTAINLY THAT WAS GOING ON IN THE HOUSING... |
| 00:53:18 |
|
FAIR QUESTION. YOU KNOW, WE HAD A GMAC CONTINUE TO TRACK THE PERFORMANCE ON THEIR LOANS OF CONSUMERS... |
| 00:53:32 |
|
WERE YOU PUSHING THEM OUT THE DOOR? WAS THERE ANY ACKNOWLEDGMENT -- |
| 00:53:35 |
|
PUSHING LOANS? |
| 00:53:36 |
|
PUSHING CREDIT OUT THE DOOR? PEOPLE COMING IN AND WANTING TO BUY THAT BIGGER, FASTER, HEAVIER AUTOMOBILE.... |
| 00:53:44 |
|
I THINK THE MANAGEMENT WAS FOCUSED ON THE FACT THAT THEY NEEDED TO BE PAID BACK BECAUSE THE MARGIN... |
| 00:54:30 |
|
STILL TO RESPOND TO MY POINT, AGAIN, I REALIZE YOU'VE ONLY BEEN HERE A SHORT TIME BUT YOU'VE FOLLOWED... |
| 00:54:36 |
|
I WOULD SAYIFY UNDERSTAND YOUR QUESTION DIRECTLY, I DON'T THINK OUR CAPTIVE FINANCE COMPANY AT THE... |
| 00:55:18 |
|
I'M GOING TO GET BACK TO YOU |
| 00:55:19 |
|
|
| 00:55:21 |
|
I THINK IT'S A REALLY GOOD POINT. I WOULD ADD IN OUR CASE, WE WERE LOOKING AT THE DATA, THAT I WOULD... |
| 00:55:58 |
|
YOU WANT TO MAKE A COMMENT. |
| 00:55:59 |
|
YEAH. I THINK IT'S IMPORTANT TO RECOGNIZE THAT THESE THREE COMPANIES IN THE CONTEXT OF THE OTHER... |
| 00:57:11 |
|
I SHOULD MOVE YOUR CHAIR. |
| 00:57:17 |
|
IN ANY CASE, THEY'RE GOING TO LAST A LONG TIME AS A CONSEQUENCE AND THIS IS IMPORTANT. THE INDUSTRY... |
| 00:59:05 |
|
I TOOK A LOT OF TIME AND I APOLOGIZE. |
| 00:59:09 |
|
ALL OF YOU HERE TODAY BECAUSE YOU REALIZE AND I THINK A LOT OF US REALIZE YOU'RE IN DIRE CIRCUMSTANCES.... |
| 01:00:30 |
|
YES, SIR. FIRST OF ALL, YOU SAID, WHAT'S DIFFERENT. THE FACT IS THAT OUR CAPACITY IN 2005 WAS ABOUT... |
| 01:00:59 |
|
WHY AREN'T YOU MAKING MONEY? |
| 01:01:00 |
|
SN |
| 01:01:02 |
|
BECAUSE -- WELL, I THINK TWO REASONS. OUR FINANCIAL RESULTS HAVE REFLECTED QUITE SIGNIFICANT COSTS... |
| 01:01:32 |
|
WAIT. YOU WEREN'T MAKING MONEY WHEN YOU HAD CHEAP MONEY FLOWING EVERYWHERE A YEAR OR TWO AGO. |
| 01:01:38 |
|
WITH YOU WE HAVE, WHEN YOU TAKE AWAY THE CHARGES FOR RESTRUCTURING THE COMPANY, FROM AN OPERATING... |
| 01:01:45 |
|
YOU HAVE TO CONSIDER THE WHOLE. |
| 01:01:47 |
|
CERTAINLY. OBVIOUSLY WE'VE PUT $103 BILLION OVER THE LAST 15 YEARS IN -- |
| 01:01:53 |
|
YOU'VE PUT OVER $100 BILLION IN RESTRUCTURING? OK. |
| 01:01:57 |
|
NO, THIS IS JUST IN POST RETIREE HEALTH CARE AND PENSION. |
| 01:02:02 |
|
WHAT ABOUT RESTRUCTURING? WHAT HAVE YOU SPENT IN THE LAST FIVE YEARS OR RESTRUCTURING? YOU SPENT BILLIONS... |
| 01:02:08 |
|
WE HAVE. WE'VE SPENT A LOT. I CAN'T GIVE YOU AN EXAMPLE NUMBER. |
| 01:02:13 |
|
WOULD YOU FURNISH THAT FOR THE RECORD? |
| 01:02:14 |
|
YES, SIR, WE CAN CERTAINLY DO. THAT AS WE LOOK AT THE BUSINESS MODEL GOING FORWARD AS WHAT I WOULD... |
| 01:02:43 |
|
WHAT WOULD YOU SAY TO PEOPLE WHO HAVE SAID WE'VE HEARD THAT BEFORE? YOU'RE THE C.E.O. OF G.M. WE'VE... |
| 01:02:56 |
|
I WOULD SAY IF YOU LOOK AT THE ACTIONS THAT WE'VE TAKEN, I MEAN, -- MEAN, THIS IS HARD STUFF AND IT'S... |
| 01:03:36 |
|
WHAT ARE YOU GOING TO DO WITH THAT MONEY IF YOU WERE TO GET IT? |
| 01:03:39 |
|
WE'RE GOING TO USE IT TO CONTINUE CONSTRUCT -- PRODUCT PROGRAMS. WE KNOW OVER TIME, IF YOU DON'T HAVE... |
| 01:04:00 |
|
FORD? HOW ARE YOU GOING TO PAY THE MONEY BACK? NEITHERER ONE OF YOU ANSWERED THAT. |
| 01:04:04 |
|
WELCOME YOUR QUESTION . WHEN WE STARTED ON THIS PLAN, IT WAS A VERY EXCITING VISION TO CREATE -- THE... |
| 01:05:17 |
|
ARE YOU MAKING MONEY YET? |
| 01:05:19 |
|
AND WE MADE MONEY IN THE FIRST QUARTER BEFORE WE HAD THIS ECONOMIC DECLINE. BUT LET ME START ON THE... |
| 01:06:51 |
|
YES, SIR, SENATOR. ONE OF THE QUESTIONS THAT WAS ASKED IS THERE'S A THIRD PARTY CALLED THE HARBOR... |
| 01:07:05 |
|
I'M FAMILIAR WITH THAT. |
| 01:07:08 |
|
THIS YEAR CHRYSLER IS SPOT-ON TOYOTA. I NOTICED THAT THE COMMENT WAS MADE FROM THE COMMITTEE, BUT... |
| 01:08:38 |
|
NOT ME. THE TAXPAYERS. |
| 01:08:40 |
|
THE TAXPAYERS. |
| 01:08:41 |
|
HOW WOULD YOU PAY THE MONEY BACK? |
| 01:08:43 |
|
BECAUSE WE WILL GENERATE PROFIT AND WE WILL HAVE TO RETURN THAT AND JUST AS WE'LL PAY OUR DEBT DOWN... |
| 01:08:53 |
|
WHAT IF YOU DON'T, THOUGH? |
| 01:08:55 |
|
WELL, SIR, WE WOULDN'T BE HERE TODAY ASKING FOR THIS IF WE DIDN'T HAVE A HIGH CONFIDENCE LEVEL THAT... |
| 01:09:17 |
|
LET ME ASK YOU THIS QUESTION AND THEN YOU'LL RESPOND, SAME THING, HOW SHOULD -- WHY SHOULD WE BELIEVE,... |
| 01:09:48 |
|
I'M SKEPTICAL THAT YOU'LL GET IT BACK. LET ME EXPLAIN WHY AND IT'S NO DISRESPECT TO THESE FINE GENTLEMEN.... |
| 01:11:20 |
|
IF THERE'S NOT DRASTIC CHANGE NO, MATTER WHAT WE SPEND ON THEM, IT'S NOT GOING TO WORK, IS IT? |
| 01:11:27 |
|
MORE THAN THAT, IT'S POSSIBLE TO ACCOMPLISH DRASTIC CHANGE. REMEMBER, CHAPTER 11 RE-ORGANIZATION HASN'T... |
| 01:11:49 |
|
THAT'S WHAT BOTHERS ME. QUICKLY, I KNOW MY TIME'S RUN OVER, I'D LIKE TO ASK EACH ONE, I'M GOING TO... |
| 01:12:06 |
|
WE HAVE ABOUT CURRENTLY ABOUT 60 MODEL. |
| 01:12:08 |
|
06. |
| 01:12:10 |
|
HOW MANY OF THESE LINES ARE CURRENTLY PROFITABLE AND HOW MANY ARE LOSING MONEY? |
| 01:12:18 |
|
PROFITABLE AT WHAT LEVEL? CONTRIBUTION MARGIN, NET INCOME? I'D SAY ABOUT HALF. AT THE LOW INDUSTRY... |
| 01:12:26 |
|
HOW LONG HAVE THESE LINES PERFORMED AS THEY'RE CURRENTLY PERFORM SNLING -- PERFORMING? HOW LONG HAVE... |
| 01:12:34 |
|
GENERALLY BECAUSE OF THE HIGHER FIXED COST FOR LOWER PRICED VEHICLES, IT'S HARDER TO MAKE MONEY, PARTICULARLY... |
| 01:12:50 |
|
FORD. |
| 01:12:52 |
|
ON THE PRODUCT LINES ON BRANDS, THE ONES THAT -- |
| 01:12:55 |
|
HOW MANY PRODUCT LINES DO YOU CURRENTLY HAVE? |
| 01:12:57 |
|
WE HAVE FORD, LINCOLN AND MERCURY. |
| 01:12:59 |
|
HOW MANY OTHERS? |
| 01:13:01 |
|
WE HAVE DIVESTED ALL OF THE OTHER BRANDS. SO WE HAVE DIVESTEDS ATON MARTIN SO WE COULD -- |
| 01:13:09 |
|
HOW MANY OF THESE LINES ARE CURRENTLY PROFITABLE AND HOW MANY ARE LOSING MONEY? |
| 01:13:15 |
|
IN JANUARY AT THE END OF THE FIRST QUARTER -- |
| 01:13:17 |
|
WE'RE TALKING ABOUT SAY NOW. |
| 01:13:19 |
|
WELL, WE'RE LOSING MONEY NOW. |
| 01:13:20 |
|
SURE YOU ARE. |
| 01:13:21 |
|
BECAUSE THE VOLUME'S WAY DOWN. BUT WHEN WE COMPLETED THE FIRST QUARTER, THE LARGER VEHICLES MADE... |
| 01:13:39 |
|
WE HAVE THREE BRANDS, AS YOU KNOW, CHRYSLER, DODGE AND JEEP. TODAY WE HAVE 22 BRANDS OR LINES, AS... |
| 01:14:19 |
|
THANK YOU. |
| 01:14:21 |
|
I JUST OBSERVED THAT YOUR FIXED CARS PER UNIT, DRIVING IT DOWN, YOU OBVIOUSLY HAVE TO SELL MORE VEHICLES.... |
| 01:14:42 |
|
THEY WON THE AWARD FOR THE BEST QUALITY VEHICLE. YOU CAN'T ACTUALLY ASSEMBLE ALL OF THE VEHICLES IN... |
| 01:17:48 |
|
KEEP MAKING THESE MISTAKES. |
| 01:17:49 |
|
JUST LEAVE YOUR MIKE ON. |
| 01:17:52 |
|
I DON'T WANT TO SAY SOMETHING |
| 01:17:53 |
|
IT'S OK. |
| 01:17:55 |
|
MY FEEL SOMETHING IT'S UNREALISTIC TO EXPECT THAT ON A SUSTAINABLE BASIS WE'LL BE SELLING 16 MILLION... |
| 01:18:09 |
|
LIKE MY MINIVAN. |
| 01:18:11 |
|
LIKE MY TRUCK. AS A CONSEQUENCE, THEY WILL BE SELLING FEWER VEHICLES. |
| 01:18:17 |
|
EXCEPT MY SON WANTS MY MINIVAN. |
| 01:18:19 |
|
I UNDERSTAND THAT. I AM A MACROECONOMIST AND I DEAL WITH THINGS LIKE POPULATION GROWTH RATES, G.D.P.... |
| 01:19:15 |
|
THANKS VERY MUCH. ANYBODY ELSE WANT TO COMMENT ON RESPONSE TO WHAT I JUST SAID? QUICKLY PLEASE. |
| 01:19:22 |
|
THANK YOU. THE ONE POINT I WANT TO MAKE IS, LABOR COST SAVINGS ARE INCREMENTAL COMING IN. AS AN EXAMPLE,... |
| 01:20:38 |
|
THANK YOU, SIR. I MADE A STATEMENT EARLIER, I WENT BACK TO 1980 WHEN AT THE TIME I WAS TREASURER OF... |
| 01:21:43 |
|
I THINK FIRST THING, YOU ALMOST CAN'T FIND A STATE WHERE IT'S NOT REL VANLT. WE BUY COMPONENTS IN... |
| 01:22:42 |
|
ALL RIGHT. LAST QUESTION I WANTED TO RAISE DEALS WITH THE HYDROGEN INFRASTRUCTURE ADMINISTRATION,... |
| 01:23:26 |
|
JUST ONE THING I WOULD OFFER IS THAT WE EXPECT THE USE OF HYDROGEN IN AUTOMOBILES, TWO KEY ENABLING... |
| 01:23:50 |
|
ANY OTHER COMMENTS? |
| 01:23:52 |
|
THE ONLY THING I WOULD SAY FOR US AT CHRYSLER, WE DIDN'T HAVE THE FINANCIAL STRENGTH TO LOOK AT A... |
| 01:24:41 |
|
ALL RIGHT. DO YOU HAVE A CLOSING COMMENT? |
| 01:24:46 |
|
YEAH. IF YOU WANT QUICK BITE ON ENERGY EFFICIENCY, IT'S GOT TO BE ELECTRIC NOT HYDROGEN AND THAT ... |
| 01:25:19 |
|
YES. BUT UNFORTUNATELY THE WIND DOESN'T ALWAYS BLOW WHEN YOU |
| 01:25:23 |
|
OK. WE CAN USE BOTH. LET ME CLOSE WITH THIS, MY COLLEAGUES, IN THE END IN THIS COUNTRY, IT'S ALL... |
| 01:26:11 |
|
THANK YOU. |
| 01:26:12 |
|
THANK YOU VERY MUCH. THANK YOU TO THE WITNESSES. THIS HAS BEEN A VERY INTERESTING EXPERIENCE TO SIT... |
| 01:28:16 |
|
I THINK IT IS. YES. AS YOU KNOW, THE REASON THAT WE NEED THE PUBLIC CAPITAL AT THIS TIME IS THAT... |
| 01:28:27 |
|
OK. |
| 01:28:31 |
|
I GUESS I'M SKEPTICAL ABOUT THAT HIGH PIE POTH SIS. I HEARD MR. MA LALY THIS MORNING EITHER ON FOX... |
| 01:28:50 |
|
YOU'RE DRIVEN TO THE GYM THAT THAT FORD TRUCK. |
| 01:28:53 |
|
I HEARD IT WITH MY OWN TWO EARS. BUT THIS IN CASE, THE LABOR AGREEMENT HAD PERMITTED HIM TO NARROW... |
| 01:29:04 |
|
YOU MADE THAT POINT. |
| 01:29:05 |
|
BUT THAT WAS VERY IMPORTANT. THAT IS VERY IMPORTANT BECAUSE IF IT WAS ZERO, IF IT WAS ZERO, THEN YOUR... |
| 01:29:14 |
|
I RECOGNIZE THE DIFFERENCE. BETWEEN YOUR ANALYSIS. OK. WE'RE BEING ASKED TO PUT PUBLIC CAPITAL IN.... |
| 01:30:32 |
|
THAT IS RIGHT. |
| 01:30:36 |
|
OK. |
| 01:30:41 |
|
THE ISSUE OF HAVING TO PAY SEVERAL BENEFIT TO THE REAL CHALLENGE. THEY STILL DO HAVE WORK RULES. |
| 01:30:49 |
|
OK. |
| 01:30:52 |
|
AND MAKES A DIFFERENCE IN PRODUCTIVITY. |
| 01:30:53 |
|
I UNDERSTAND. , THE U.A.W. IS SAYING NO OVERTIME BY VIRTUE OF THE AGREEMENTS THAT THEY'VE MADE THAT... |
| 01:31:31 |
|
THEY ARE NOT REQUIRED TO PAY THEIR WORKERS $105,000 A PIECE. |
| 01:31:36 |
|
SENATOR, FIRST OF ALL, AS FAR AS PRODUCTIVITY GOES, WE RAN SOME ADS AND I HOPE YOU SAW ONE OF THEM... |
| 01:32:02 |
|
ADDRESS THE QUESTION OF THE $105,000. |
| 01:32:07 |
|
THE $105,000 -- KIND OF GOT ME ON A SUMB THERE. I DON'T KNOW WHERE THAT NUMBER IS COMING FROM. |
| 01:32:16 |
|
I HAVE BEEN A C.E.O. AND I KNOW IF I HAVE THAT SITTING ON MY BACK, I HAVE A REAL PROBLEM. NOW, THE... |
| 01:33:20 |
|
THERE IS ONE OTHER FACTOR THAT THE DOCTOR IS REFERRING TO WHEN WE INDUCE PEOPLE TO LEAVE BEFORE RETIREMENT... |
| 01:34:35 |
|
WILL YOU CONTINUE TO HAVE TO PAY THEM. WILL YOU CONTINUE? HAS YOUR LAYOFF WORKERS HAVE TO PAY TO... |
| 01:34:47 |
|
THAT'S THE KEY QUESTION -- YOU WANTED TO COMMENT? |
| 01:34:53 |
|
CLEARLY, IF YOU'RE IN A DECLINING BUSINESS AND YOU HAVE A COST TO SEPARATE PEOPLE, YOUR COSTS ARE... |
| 01:35:22 |
|
YOU ONLY ACCOMPLISH THAT IF YOU HAVE A GROWING MARKET SHARE IF THE NUMBER OF CARS PURCHASED EVERY... |
| 01:35:35 |
|
WELL, WE -- |
| 01:35:38 |
|
THANK YOU VERY MUCH. OUR RESPONSIBILITY AS STEWARDS OF THE PUBLIC MONEY, WHICH WOULD BE THE PATIENT... |
| 01:36:32 |
|
LET ME THANK SENATOR BENNETT. HE IS ALWAYS TREMENDOUSLY HELPFUL. AND TURN TO SENATOR MENENDEZ. I... |
| 01:37:58 |
|
MR. CHAIRMAN, WHEN YOU SAID $5 BILLION THAT'S WHAT WE WERE PAYING OUT A MONTH. THAT'S NOT WHAT OUR... |
| 01:38:12 |
|
I HAD THAT NUMBER HERE. THAT'S THE WRONG NUMBER? |
| 01:38:16 |
|
YES, SIR. |
| 01:38:17 |
|
RIGHT NUMBER IN THE THIRD QUARTER WE BURNED ABOUT $13 BILLION. ABOUT $1 BILLION A MONTH. |
| 01:38:25 |
|
IT'S A QUARTER NUMBER? |
| 01:38:27 |
|
WE BURNED -- IF YOU RELATE TO THE NUMBERS YOU JUST CITED FOR GM AND FORD, OUR NUMBER WOULD BE $3 BILLION.... |
| 01:38:36 |
|
THANK YOU, MR. CHAIRMAN. YOU JUST ASKED THE FIRST QUESTION THAT I INTENDED TO ASK, BUT I'LL ASK IT... |
| 01:40:02 |
|
SENATOR, ONE WAY THAT WE'VE LOOKED AT IT IS, WE LOOKED AT THE CASH CONSUMPTION. WE'VE GONE THROUGH... |
| 01:40:15 |
|
WHAT IS THAT? WHAT IS THAT? WHAT IS CASH CONSUMPTION IN THE FIRST THREE-QUARTERS? |
| 01:40:21 |
|
IF YOU LOOK AT OUR CASH CONSUMPTION, WE END AT THE THIRD QUARTER WITH ABOUT $6.1 BILLION IN CASH.... |
| 01:40:34 |
|
THAT'S WHAT YOU ENDED UP WITH? |
| 01:40:37 |
|
WE BASICALLY -- |
| 01:40:40 |
|
WHICH IS IT, WHAT YOU ENDED UP OR WHAT DID YOU SPEND? |
| 01:40:45 |
|
ENDED UP WITH. |
| 01:40:47 |
|
IN THE THIRD QUARTER, $3 BILLION. IN QUARTER ONE AND TWO, WE WERE HOLDING OUR OWN. WE ENDED THE FIRST... |
| 01:41:08 |
|
WHAT IS THE NET AMOUNT THAT YOU BURNED THROUGH THE FIRST THREE-QUARTERS? |
| 01:41:14 |
|
WE'VE BURNED THROUGH $5 BILLION. SO, WHAT WE'VE LOOKED AT, WHAT IS THE PRODUCTION LEVEL FOR THE FOURTH... |
| 01:42:06 |
|
THE OTHER GENTLEMEN FROM THE OTHER COMPANIES, HOW DO YOU ALL COME HERE AND SAY $25 BILLION? |
| 01:42:14 |
|
BASICALLY, AND THIS IS OBVIOUSLY THE KEY ASSUMPTION IS TO ESTIMATE WHAT YOU THINK THE INDUSTRY IS... |
| 01:42:46 |
|
WHAT WAS YOUR FIGURE? MR. NARDELLI GAVE ME A FIGURE. |
| 01:42:50 |
|
OUR CASH BURN FOR THE FIRST NINE MONTHS, WE BURNED ABOUT $9 BILLION EACH IN THE FIRST AND SECOND QUARTER.... |
| 01:43:08 |
|
YOUR TOTAL NUMBER YOU ARE PROJECTING OF? |
| 01:43:14 |
|
AROUND -- BETWEEN -- LET'S SAY $15 BILLION. |
| 01:43:20 |
|
THAT LEAVES ONLY $5 BILLION FOR FORD. YOU ARE LOOKING FORWARD, RIGHT? YOU EXPECT THE BURN TO BE LESS?... |
| 01:43:28 |
|
WE DO. |
| 01:43:30 |
|
HOW MUCH LESS? |
| 01:43:33 |
|
WE HAVE TAKEN COST-CUTTING ACTIONS. |
| 01:43:37 |
|
YOU ARE THE C.E.O. AND I'M A FIDUCIARY TO THE TAXPAYER. |
| 01:43:41 |
|
WE WOULD EXPECT TO REDUCE IT BY AT LEAST $5 BILLION. |
| 01:43:46 |
|
THAT'S $10 BILLION THAT YOU WOULD STILL BURN. |
| 01:43:48 |
|
RIGHT. |
| 01:43:51 |
|
AND YOUR $5 BILLION IS STILL IN TACT FOR NEXT YEAR? |
| 01:43:57 |
|
BETWEEN $5 BILLION TO $7 BILLION. |
| 01:44:01 |
|
WE HAVE NOW BETWEEN $15 BILLION AND $17 BILLION. |
| 01:44:07 |
|
WHEN WE PROVIDED OUR FORWARD GUIDANCE WE SAID WHAT OUR PLAN WAS, THAT WE WERE GOING TO ENHANCE ACTIONS... |
| 01:44:28 |
|
THAT DEPENDS ON THE ASSUMPTION FOR THE INDUSTRY, WHETHER -- HOW MUCH IT SLOWS DOWN. SO WHAT WE DID,... |
| 01:44:58 |
|
WHAT DOES THAT WILL EQUATE TO AT THE END OF THE DAY IN TERMS OF MONEY YOU ARE GOING TO BE SEEKING,... |
| 01:45:06 |
|
WE CAN'T GIVE FORWARD GUIDANCE IN PUBLIC MORE THAN WHAT WE ALREADY HAVE. |
| 01:45:11 |
|
HERE'S THE PROBLEM. YOU ASKED US TO GIVE YOU $25 BILLION OF THE TAXPAYERS' MONEY. WE HAVE TO HAVE... |
| 01:48:01 |
|
THE POINT IS AND THE POINT WE ARE TRYING TO GET AT, YOU ARE LOOKING AT 2010 IN TERMS OF OUR ECONOMY... |
| 01:48:31 |
|
MR. CHAIRMAN. ONE LAST POINT IF I MIGHT. THE ENERGY BILL THAT WE PASSED THAT HAD THE $25 BILLION THAT... |
| 01:48:50 |
|
WE APPLIED THE FIRST DAY IT WAS AVAILABLE BY 5:00. |
| 01:48:57 |
|
WE APPLIED MONDAY MORNING AT 8:43 A.M. |
| 01:49:00 |
|
OK. |
| 01:49:02 |
|
I'M GLAD TO HEAR THOSE ANSWERS, BECAUSE THAT CERTAINLY APPEARS TO BE A VIABLE PROGRAM THAT IS NECESSARY.... |
| 01:49:43 |
|
SENATOR. YOU WANT TO MOVE UP? |
| 01:49:53 |
|
MR. CHAIRMAN, THANK YOU FOR THIS GREAT HEARING AND I APPRECIATE ALL OF YOU BEING HERE AND UNDERSTAND... |
| 01:52:36 |
|
I WOULD BE HAPPY TO SAY -- |
| 01:52:38 |
|
I JUST WANT THE NUMBERS. JUST GIVE THE NUMBERS THAT YOU GAVE TO MR. LEVIN. |
| 01:52:46 |
|
$7 BILLION. |
| 01:52:49 |
|
AND THE NUMBER FROM GM. |
| 01:52:50 |
|
I THINK YOU HAVE TO BE FAIR AND LOOK AT IT. |
| 01:52:57 |
|
FOR $25 BILLION THAT YOU HAVE ASKED FOR -- |
| 01:53:02 |
|
WE FELT IF WE GET OUR PROPORTIONATE MARKET SHARE OF THAT, IT WOULD BE IN THE $10 BILLION TO $12 BILLION.... |
| 01:53:21 |
|
HOW MUCH IS FORD GETTING? $7 BILLION, $8 BILLION. |
| 01:53:27 |
|
THOSE ARE THE NUMBERS. MR. GET ELL FINANCING -- MR. GETTELFINGER, YOU HAVE BEEN IN THESE THREE COMPANIES,... |
| 01:53:41 |
|
BEING IN THE BEST SHAPE TO THE WORST? |
| 01:53:42 |
|
YEAH. |
| 01:53:46 |
|
I WOULD RANK THEM FORD, CHRYSLER AND GENERAL MOTORS. |
| 01:53:51 |
|
AND I HAVE TO SAY THAT WE HAVE GONE TO 10 MILLION SALES A YEAR IN THE COUNTRY AND MAY NOT BE A NEED... |
| 01:55:03 |
|
THAT'S PART OF THE PROCESS, YES. I'M NOT SURE THAT ALL HAS TO BE SUBMITTED UP FRONT. WE ARE AWARE... |
| 01:55:11 |
|
I WOULD SAY TO THE COMMITTEE, IT SEEMS TO ME THAT WE WOULD LIKE TO AT LEAST LOOK AT THOSE PRIOR TO... |
| 01:55:23 |
|
WHAT DO YOU WANT? |
| 01:55:25 |
|
THEY ARE GOING TO HAVE TO SUBMIT FOR THEIR 136 APPLICATION, THEY HAVE TO SUBMIT SOMETHING THAT LAYS... |
| 01:56:54 |
|
EACH MARKET TO BE FAIR, HAS ITS OWN CIRCUMSTANCES, BUT IN GENERAL, WE HAVE DONE QUITE WELL IN MOST... |
| 01:57:28 |
|
YOU ALL HAVE BEEN VERY CAREFUL, AND I APPRECIATE THIS, AND MR. GETTELFINGER, I HAVE BEEN A CARD-CARRYING... |
| 01:58:16 |
|
ONE EXAMPLE, THE VOLUNTARY EMPLOYEE BENEFICIARY ASSOCIATION. WE HAD TO GO THROUGH A COURT PROCESS... |
| 01:59:07 |
|
MR. NARDELLI HAD A REPRESENTATIVE IN OUR OFFICE THAT WAS SHARING THAT EVEN WHEN THEY'RE NOT MAKING... |
| 01:59:35 |
|
SENATOR, I'M NOT SURE I AM NOT SURE WHAT YOU SAY WHEN YOU SAY 80%. |
| 01:59:48 |
|
I AM EXPLAINING THAT EVEN WHEN IT IS NOT NEED, THEY HAVE TO OPERATE. THERE HAVE TO BE SOME ISSUES ... |
| 02:00:02 |
|
THERE IS A CONTRACTUAL OBLIGATION THAT WHEN YOU HAVE TO IDLE A FACILITY THAT YOU HAVE TO CONTINUE... |
| 02:00:59 |
|
SENATOR, FIRST OF ALL, I GAVE SOME NUMBERS HERE EARLIER ON. GENERAL MOTORS, 9/30/05 HAD -- |
| 02:01:10 |
|
I KNOW WHAT YOU'VE DONE. |
| 02:01:12 |
|
BUT THEY'RE NOT GETTING PAID IS THE POINT. WE WERE ABLE TO REDUCE -- |
| 02:01:16 |
|
I KNOW YOU ARE TALKING ABOUT THE BANK. BUT THIS IS A DIFFERENT ISSUE. THIS IS A DIFFERENT ISSUE. |
| 02:01:22 |
|
YOU ARE TALKING ABOUT THE SUBPAY? |
| 02:01:24 |
|
MR. NARDELLI DO YOU WANT TO EXPLAIN THE ISSUE. |
| 02:01:28 |
|
I THINK WHAT THEY WERE ALLUDING TO, RON, IS IF WE HAVE TO IDLE A FACILITY, THAT WE HAVE ONGOING CONTRACTAL... |
| 02:01:41 |
|
THAT'S THEIR UNEMPLOYMENT -- |
| 02:01:44 |
|
FOR HOW LONG? |
| 02:01:47 |
|
I WOULD HAVE TO LOOK AT THE CONTRACT. |
| 02:01:54 |
|
I WOULD LIKE TO KNOW AND KNOW WHAT EXPENSE IT IS TO THE COMPANIES. LET ME GO BACK TO PRE-PACKAGED... |
| 02:03:26 |
|
IF I COULD START, I'M NOT AN EXPERT IN BANKRUPTCY, BUT I HAVE SEEN RESEARCH BY AN INDEPENDENT PARTY... |
| 02:04:30 |
|
TODAY. AND I KNOW YOU WILL COME BACK FOR MORE. WOULD YOU ALL MAKE THE PLEDGE THAT IF YOU GET THE $25... |
| 02:04:41 |
|
WELL, I THINK -- |
| 02:04:43 |
|
I DON'T THINK YOU'RE UNDER OATH. |
| 02:04:45 |
|
IF YOU COULD MAKE THE PLEDGE TO US THAT THE U.S. ECONOMY WOULD TURN AROUND AT A CERTAIN PERIOD OF... |
| 02:04:57 |
|
YOU'RE GOING TO BE BACK. |
| 02:04:59 |
|
THAT'S OUR BEST ESTIMATE OF HOW MUCH WE NEED. WE WOULD BE VERY GLAD TO DO THAT. |
| 02:05:04 |
|
I THANK YOU ALL. |
| 02:05:07 |
|
YES. |
| 02:05:09 |
|
TWO PARTS OF YOUR QUESTION, IF I MAY, SIR. WE DID LOOK AT PRE-PACKAGE AND PRE-NEGOTIATED AND ALMOST... |
| 02:07:20 |
|
YOU ARE ALLUDING TO THE FACT THAT YOU WOULD LIKE TO SEE A MERGER BETWEEN GM AND YOURSELVES. MAYBE,... |
| 02:07:44 |
|
LET ME TURN TO SENATOR CASEY, BUT I CAN'T RESIST COMMENTING ON THIS IDEA OF PROVIDING SOME COMPENSATION... |
| 02:08:32 |
|
THANK YOU FOR CALLING THIS HEARING. WE HAVE HAD A NUMBER OF HEARINGS IN THE PAST COUPLE OF MONTHS... |
| 02:10:06 |
|
SURE. ONE QUESTION FOR CLARIFICATION, BECAUSE EACH OF OUR BUSINESSES ARE DIFFERENT. BUT OUR CASE... |
| 02:10:48 |
|
I DON'T WANT TO INTERRUPT, BUT COULD YOU PUT A TIME FRAME ON THAT, IN TERMS OF HOW YOU CAN GET THROUGH.... |
| 02:10:57 |
|
OUR ASSUMPTION WAS THAT IF THE MARKET DOESN'T DETERIORATE, SIGNIFICANTLY MORE THAN HOW WE CAME OUT... |
| 02:14:46 |
|
I HAVE SOME FOLLOW UPS, BUT I WILL WAIT FOR NOW. |
| 02:14:50 |
|
MR. NARDELLI? |
| 02:14:52 |
|
IF WE ARE GRANDED THE OPPORTUNITY FOR THIS CASH INFUSION, WELL USE IT FOR OPERATING CASH FLOW. ONE... |
| 02:16:05 |
|
SENATOR, I WON'T REPEAT. I WILL JUST ADD BECAUSE I THINK WE ALL HAVE SIMILAR BUCKETS. PAY SUPPLIERS,... |
| 02:16:50 |
|
WHAT I WILL DO FOR THE RECORD IS FOLLOW UP WITH SOME QUESTIONS ABOUT MAYBE PROVIDE KIND OF A PROGRESS... |
| 02:18:20 |
|
SENATOR TESTER. |
| 02:18:22 |
|
THANK YOU, MR. CHAIRMAN. I HAVE A FEW QUESTIONS AND I HOPE YOU CAN MAKE YOUR ANSWERS SHORT BECAUSE... |
| 02:18:45 |
|
YES. |
| 02:18:47 |
|
YES, SIR. WE ARE PRIMARILY A U.S.-BASED COMPANY. |
| 02:18:51 |
|
YES. |
| 02:18:54 |
|
THERE WAS A QUESTION EARLIER ASKED BY ONE OF MY FELLOW SENATORS THAT SAID, I THINK GM, YOU ARE MAKING... |
| 02:19:10 |
|
CHINA MIGHT BE A BIGGER EXAMPLE WHERE WE DID INITIALLY 10, 12 YEARS AGO INVEST A SIGNIFICANT AMOUNT... |
| 02:19:33 |
|
I'LL GO TO FORD HERE IN A SECOND SINCE CHRYSLER IS MAINLY IN THIS COUNTRY. HOW WOULD WE KNOW? YOU'RE... |
| 02:20:12 |
|
WE WOULD BE GLAD TO WORK ON SOURCING AND USE OF FUNDS AND FIND A WAY TO ENSURE THAT FOR YOU. |
| 02:20:20 |
|
PLUS I WOULD ADD THE FACT THAT WE OPERATE GLOBALLY THAT WE GET THE SCALE OF THAT GLOBALLY, WHICH BRINGS... |
| 02:20:30 |
|
LET'S TAKE IT TO THE OTHER DIRECTION, WHY NOT BRING THOSE FUNDS FROM THOSE PROFITABLE |
| 02:20:35 |
|
WE DO. THE PROFITS WE MAKE, WE USE TOGETHER TO FURTHER INVEST IN THE FUTURE. |
| 02:20:41 |
|
OK -- |
| 02:20:43 |
|
IN ALL OF THOSE MARKETS. |
| 02:20:46 |
|
SO DO YOU REALLY NEED THE MONEY? IF YOU ARE ABLE -- IF YOU'RE GLOBAL AND YOU ARE ABLE TO TAKE MONEY... |
| 02:21:07 |
|
I UNDERSTAND YOUR QUESTION. THE REASON WE'RE HERE IS FROM A TOTAL ENTERPRISE POINT OF VIEW. CLEARLY... |
| 02:21:24 |
|
ON OUR SIDE, WE HAVE TRIED TO -- TO THE EXTENT WE CAN, REPATRIOT MONEY FROM OTHER BUSINESSES BUT WE... |
| 02:22:13 |
|
DO YOU THINK THERE SHOULD BE ANY STRINGS ATTACHED AND THE PRESIDENT-ELECT HAS TALKED ABOUT INCREASED... |
| 02:22:27 |
|
I THINK ON THE CAFE ON THE FUEL MILEAGE, THE WORK WE DID LAST YEAR WAS VERY GOOD WORK. WE STRETCHED... |
| 02:22:50 |
|
HOW FAR ARE YOU GOING TO EXCEED THE CAFE STANDARDS WE PASSED A YEAR AGO? |
| 02:22:56 |
|
WE ARE COMMITTED TO MEETING THOSE REQUIREMENTS. |
| 02:22:59 |
|
GO AHEAD. |
| 02:23:03 |
|
THEYR AS YOU KNOW, ALL NEGOTIATED TOGETHER, THOSE ARE TREMENDOUS STRETCHES USING THE TECHNOLOGY THAT... |
| 02:23:13 |
|
AND THOSE ARE FLEET-WIDE AVERAGES AND FROM PERSONAL EXPERIENCE, IN 30 YEARS, THE MILEAGE INCREASE... |
| 02:23:27 |
|
I PERSONALLY WOULD BE GLAD TO SIT DOWN WITH YOU. WE THINK THE IMPROVEMENT WE HAVE MADE OVER THE LAST... |
| 02:23:48 |
|
I'M TALKING HALF TONS. |
| 02:23:50 |
|
MAYBE THAT WOULD BE GOOD TO COMPARE NOTES ON. |
| 02:23:53 |
|
IT'S ONE OF THE THINGS THAT I THINK IS A VERY GOOD MARKETING TOOL FOR DOMESTICALLY-MADE VEHICLES THAT... |
| 02:24:13 |
|
JUST LIKE THE LAST TRUCKS WE ARE INTRODUCING, WE ARE MAKING SIGNIFICANT IMPROVEMENT. |
| 02:24:19 |
|
YOU WOULD BE OPPOSED TO ANY STRINGS ATTACHED FOR INCREASED CAFE STANDARDS FOR ANY KIND OF BAILOUT?... |
| 02:24:28 |
|
FROM OUR PERSPECTIVE, WE ARE STRETCHING TO MEET THE REQUIREMENTS. WE UNDERSTAND THERE WILL BE STRINGS... |
| 02:24:42 |
|
OBVIOUSLY GIVEN OUR SITUATION, WE WOULD BE OPEN TO ANY REQUIREMENTS THAT YOU FELT APPROPRIATE. I... |
| 02:25:05 |
|
BACK IN 1979 WHEN WE BAILED OUT CHRYSLER, LEE IACOCCA SAID HE WOULD TAKE ONE DOLLAR IN COMPENSATION... |
| 02:25:27 |
|
I WOULD BE WILLING TO ACCEPT THAT. |
| 02:25:29 |
|
I WOULD BE WILLING TO CONTRIBUTE TO THE SACRIFICE. A COUPLE OF YEARS AGO, I CUT MY SALARY 50%. SO... |
| 02:25:43 |
|
50% OF $20,000 IS A WHOLE LOT LESS THAN A SIX-DIGIT FIGURE. |
| 02:25:49 |
|
I AGREE. |
| 02:25:50 |
|
I ABSOLUTELY RESPECT THE INTENT OF YOUR QUESTION AS A SYMBOLIC GESTURE, BUT IT IS A SYMBOLIC GESTURE.... |
| 02:26:30 |
|
YOU GUYS ARE DOWN THE LINE A LITTLE BIT, BUT FROM MY PERSPECTIVE, WHEN YOU SEE THINGS THAT HAPPEN... |
| 02:27:40 |
|
WE REALLY HAVE THREE ISSUES IF WE WANT TO GET THE INDUSTRY BACK INTO THE POSITION WE WOULD LIKE. FIRST... |
| 02:28:11 |
|
SAME. |
| 02:28:12 |
|
I WOULD AGREE WITH THOSE THREE POINTS AND ONLY ADD THAT CERTAINLY PROVIDING JOB OPPORTUNITIES FOR... |
| 02:28:38 |
|
THE ONLY THING I WOULD ADD IS THAT IS YOUR REAL QUESTION IS HOW QUICKLY CAN WE GET THE ECONOMY GOING... |
| 02:29:01 |
|
DOCTOR? |
| 02:29:02 |
|
I KNOW YOU LIKE TO TALK ABOUT STRINGS, AND I WOULD ADMONISH YOU WHATEVER SOLUTION YOU COME UP WITH,... |
| 02:29:33 |
|
THAT IS A VERY GOOD POINT. THE LAST POINT IS IN YOUR OPINION, THE $HAS THE $300 BILLION SPENT SO FAR... |
| 02:29:50 |
|
WE HAVEN'T SEEN ANY MEASURABLE CHANGE EXCEPT FOR WE HAVE HAD THE CAPABLE TO USE THE COMMERCIAL PAPER... |
| 02:29:59 |
|
NOT AT THAT TIME. |
| 02:30:00 |
|
AGREED. |
| 02:30:01 |
|
THANK YOU, GENTLEMEN, VERY MUCH. WE APPRECIATE YOUR TIME. |
| 02:30:04 |
|
JUST A COUPLE OF POINTS I WANT TO RAISE. YOU ARE VERY PATIENT, AND I THANK MY COLLEAGUES AS WELL.... |
| 02:30:49 |
|
MR. CHAIRMAN, WE HAVE HEARD THAT IDEA. OBVIOUSLY WE WOULD BE THE LAST TO TURN DOWN ANY OFFER OF HELP.... |
| 02:35:32 |
|
ALASKA SENATOR TED STEPHENS HAS LOST HIS RACE FOR RE-ELECTION. WITH ALL BUT A FEW ABSENTEE BALLOTS... |
NOTE: The transcript for this program was compiled from uncorrected Closed Captioning.
