Thank you, Mr. Chairman.

If the U.S. automakers didn't play such a central role in the

American...

Well, thank you, Mr. Chairman. I appreciate your

willingness to go out of regular order to allow...

We've never disagreed on anything, I think, in our

entire life. We're not disagreeing on this...

That's the one thing that we disagree on as a matter

of fact. Mr. Chairman and members of the...

Thank you Mr. Chairman, it's good to

be here. And I'm glad you're having the hearing.

Let...

Let me just summarize the points that I would

like to make today.

Clearly the automobile...

Thank you very much, Mr. Chairman,

the ranking member, as well as all the members of the committee.

I...

Thank you Mr. Chairman, and ranking

member Bachus and all of my colleagues.

I was in the...

Thank you, Senator. I appreciate

your -- or Congressman -- I appreciate your remarks. Let me...

I would just note -- and I know -- get the

gentlemen's point -- but Lehman Brothers is probably...

But there were others who --

The gentlewoman from Michigan.

I thank the gentlewoman. I thank all of my

colleagues for testifying quite succinctly on the...

No, we're not going to be having any questions to

the panel so if you could just make --

Thank you. In fairness to all the witnesses --

You're welcome and we'll now call on our next panel.

The next panel will come forward I will...

The witnesses will now begin with their opening

statements. We had no further requests for an...

Next, Mr. Robert Nardelli from Chrysler.

And now, Mr. Alan Mulally, of Ford.

Mr. Ron Gettelfinger, from the United Auto Workers.

Thank you, Mr. Gettelfinger.

Let me just at this point ask unanimous consent to insert into

the...

No, sir. I think it's completely due to the credit

crisis. And I just give you as an example,...

Congressman, we'd glad. And I think in our various

comments, we've commented on the kind of...

I don't believe, Congressman, that we have the

luxury of a lot of time. And if I could --

I can't tell you that for certain because a lot

depends on whether our suppliers will continue...

Yeah. The needs are urgent. If everybody who lent

money to the industry suppliers asked it to...

We have talked about this 25 billion (dollars)

bridge loan. And while --

We have talked about an allocation of the 25

billion (dollars) that would be approximately based...

Congressman, it's going to depend on what happens

with suppliers and the market.

Worst-case scenario, the amount of money would be

significant. I mean, we have supplier --

-- 4 (billion dollars) or $5 billion every month.

The analysis that we've done is based on an

assumption that the U.S. market continues at about...

Thank you, Mr. Chairman.

Gentlemen, before I lost my mind and went into politics, I spent

25...

Yes, sir. For us, you mentioned, relative to

the private equity, we did publicly disclose that...

I think your question, Congressman, is very, very

important. As you well know, having a clear...

And the best value.

Thank you very much, Mr. Chairman.

Again, I thank you for this hearing. It is extremely important

that...

Well, GMAC has a letter here to your dealers that

says, "In response to difficult credit, market...

Mr. Nardelli, would you be willing to dedicate $1

billion of this money to help the dealerships.

Mr. Nardelli, we've got to be more specific than

that. We don't have time for --

I think the question has been put. We really have

to --

-- be on time. Let's have the (answer ?).

So your answer is yes?

Your answer is yes?

The gentlewoman from West Virginia.

Regulations were promulgated recently and I think

all of us now have filed our first applications....

Well, from my side, to be honest, we've been, or at

least from GM's side, we have been clear...

Yes. I'd like to make a comment on that. You

know, when we did that last year during the 2007...

Well, for Chrysler we did -- we looked at an

assumption of what the balance of the year will...

Performed a similar sort of analysis and came up

with an estimate of 10 (billion dollars) to...

In Ford, we're in a little different position

because we believe that the actions that we have...

Ms. Maloney?

I think as we said in our testimony bankruptcy

would be devastating. I know from Chrysler's...

I would also like to add the point, there'd be a

massive loss of revenue under any scenario....

Thank you. From what I can understand and you

correct me if I'm wrong, there are two problems...

Well, let me ask you this then. I'm assuming that

the other two gentleman agree that have --...

And that would help, wouldn't it?

And that's something we can do without legislation.

I'm not suggesting that there won't be legislation...

And that's something we could do without

legislation. I'm not suggesting that there won't be...

Yeah, I would --

-- there's some sense of urgency, yeah.

I mean -- you know, I'd be disappointed if that

wasn't a top priority of the Fed today.

Let...

Let me say that --

And I agree with you. And let me say this, I think

it would be helpful as you sell the public...

Mr. Gettelfinger, there's a lot of that going

around. The gentleman from New York.

Well, sir, I can tell you what we've done at

Chrysler in the last 18 months. We've installed...

Mr. Chairman, thank you very much.

Gentlemen, thank you for being here -- to your left, I'm...

(Chuckles.) Well, I'm somewhat independent -- thank

you, Mr. Chairman. The budget should be...

I would say the auto business has become somewhat

more global over the years. And, you know,...

If the gentleman would yield. I think one of the

(answers ?) did have, however, a real problem...

Yeah, Mr. Gettelfinger.

Mr. Chairman, may I make my statement and then

close, sir?

The Thursday after the Tuesday election at East

Carolina University in Greenville, North Carolina,...

Thank you, Mr. Chairman. And let me

start by thanking the chair and the Senate yesterday for...

Well, overcapacity suggests that a number of them

will go out of business. And my experience...

Now, a number of them are also experiencing

challenges with the financial services sector because...

Thank you, Mr. Chairman.

Thank you very much. I appreciate

the opportunity that we have this afternoon. Especially welcome...

Those are local credit unions and local banks?

Sir, we have gone to two major banks. We have

given one of them half of our country, four of...

The reason I asked that is you're asking for

taxpayers funds for people to buy cars when, in...

But where would -- where would it go?

Where would the money go?

Alright. The -- I presume it would be the same

answer, it's going for general operating expenses....

The reason I asked the question is, isn't it

better to give a 3 (thousand dollar) or $4,000...

The consumer has access to a loan, Mr. Nardelli.

It's the local credit union and the local bank....

Well I -- I thank you.

No I just -- the comment that -- Mr. Chairman,

thank you, you're very generous -- is the fact...

It would be insane if this country

stopped designing and building automobiles and trucks. It...

Let's hear from General Motors.

If I have time, Ford as well.

So we're talking, roughly, five times the number

of warrants called for in the current draft...

Thank you, Mr. Chair.

I was listening to some of the questions by Mr. Watt, and I'm

trying...

And encourage mergers. I mean, this is the day and

age of mergers.

Yesterday at the Senate committee hearing, I think I

heard a number of senators reference Honda...

Before I go to the next questioner, let me say --

assuming the indulgence of the witnesses,...

It's just such an important question. And I think

from a lessons learned point of view, being...

And be competitive. And actually -- and like

you've -- like I mentioned this morning, we are...

Thank you.

Thank you. I think I tried to address the business

restructuring, the cost restructuring, in...

No, I'm talking about the fact that we have

restructured labor agreements, reduced labor rates...

We are going to continue our focus on new product

launches, and particularly -- and in line...

Yeah. We have -- we're not going to do Super Bowl

ads this year, frankly, because we're cutting...

And I think it's fair to say every part of our

business, cutting back expenses dramatically,...

Yes. There is a --

Yes.

Well, as I said in my comments, that Cerberus

Capital Management has made it clear that they...

Yes. We've already decided to forego any merit

increases on the base salary and also any bonuses....

-- we're in a very competitive marketplace. But we

have a very -- (inaudible) -- motivated team.

(Cross...

You bet.

May I answer?

We did select a single technology. Because of our

financial situation, we could not afford to...

I thank the chairman. Thank you

for your indulgence, and I will have an opening statement and...

Thank you, Mr. Chairman. And my

comments are not as passionate as my friend from Michigan, but...

Excuse me for interrupting, but on the point of the

credit market and in freeing up credit,...

Okay. Mr. Nardelli how do we stop the bleeding of

jobs in the industry? How do we save some...

Thank you.

Thank you, Mr. Chairman. I will try

to just summarize a bit of an opening statement.

I,...

I think you really hit on the key parts. And just

two areas I'd like to focus on in response...

With the agreement that we've made the UAW and our

productivity improvements, we can make cars,...

Thank you, Mr. Chairman.

Well, thank you for the question.

As far as asking the Chinese government. We haven't. To be

honest,...

In China, basically, almost everything that we sell

in China is made there. We export almost...

Mexico is integrated completely in our U.S.-

Canadian production system. So we build many cars...

Okay. Thank you, Mr. Chairman.

Thank you, Mr. Chairman. I appreciate

that.

And to save time, I will associate my remarks...

I thank you, Mr. Chairman.

I was a cosponsor, back in 1979, of the Chrysler loan guarantee

and...

Thank you, Mr. Chairman.

I thank the panelists for being here today and I apologize if any

of...

Sir, I wonder if I could just offer one

thought -- is what makes this different from the examples...

Thank you, Mr. Chairman.

Thank you, Mr. Chairman.

Much of the debate today and in the country in the last few weeks

has...

Anyone? Mr. Nardelli?

Sure. Clearly, as a publicly traded company, our

number one priority is to create value over...

Well, I think what we do if we look back at

the conclusion of negotiations last year -- and...

Thank you, Mr. Chairman.

Like Mr. Ehlers that just asked a question, for years many of us

in...

But that's still two years.

Mr. Wagoner?

Mr. Mulally.

Then what -- would a bailout loan to your

companies go to your finance or to the operations...

Okay. What percentage of a loan would go towards

financing consumer auto loans, to start moving...

Okay. Well I've heard that some of the loans that

are being made are 9 percent loans, but that...

Wouldn't that -- then how are you going to sell

cars?

Well, how would you do that? And I mean, if

you're going to take a bailout to make sure that...

Just one other quick question. How many of your

dealers are not getting paid? Are they all being...

They're all being paid on time?

Okay. Thank you.

I yield back.

Thank you, Mr. Scott.

Mr. Hensarling, you are allotted seven minutes.

I, prior to your being here, commented on that

matter, that we, like all businesses, build our...

We have developed a detailed plan, I think, the

nature of it. Traditionally those kind of things...

(We have ?) detailed plans, sir.

Thank you, Mr. Chairman.

Mr. Chairman, in a metaphorical sense, I rise to speak on behalf

of...

Mr. Chairman, thank you. And

thank -- (audio break) --

Thank you, Mr. Chairman.

Most large corporations that would be facing similar situations

that...

That's not my question. So you do have plans,

yes?

All right. Mr. Wagoner.

So you have no plans for how you go through that

process -- either Chapter 7 or Chapter 11,...

So therefore, you have studied it?

Okay. Mr. Mulally.

A far more positive comment from you. But -- so

as a potential vote on whether or not to lend...

Well you said you have plans for Chapter 7 --

Okay, reclaiming my time, I would submit to you

that there are many industries in America that...

Thank you, Mr. Chairman. I have

six questions, I think we can get through them if you cooperate...

Okay, thank you. So are we going to divide three

into 25 (billion dollars)?

So we're going to do --

No, no, Chrysler, General Motors, Ford -- 7

billion (dollars) a piece that's 21 (billion dollars).

Okay what is General Motors --

Ford? Sir?

(Laughs.) This is a -- I mean we're just spending

$25 billion loosely. I mean this is loosey-goosey...

I can say not in -- relative to his comments

Chrysler, I think, has made pretty public that...

Okay. GMAC receives a part of this money although

they are a non-depository institution -- I...

Okay. But you ought to be really angry with them

or some -- I mean, whether you control it or...

The gentlewoman from Minnesota is recognized for

seven minutes, combining an opening statement.

There's seven seconds left for the response.

The gentleman from Colorado.

Third quarter of 2007 I don't remember the specific

quarters but I believe that's the quarter...

We also recorded a loss.

The total was, as I recall, about $2.9 billion net-

net.

We don't provide financial guidance in earnings.

I would say it looks like at this point industry

sales are running about the same level.

Well ours aren't' down quite as much. We had a

strong prior September so we had a little weaker...

We lost money in the third quarter.

We burned about three billion dollars in cash.

On a monthly basis relative to --

We have about a 4 (billion dollar) to $5 billion

obligation.

Yes, sir.

Well our total expenses in let's say North America

maybe in a normal industry would run around...

We lost ($)4 billion.

In the third quarter we had a run rate of seven

point seven, but we think that going forward,...

That was an industry forecast, U.S. industry

forecast, light vehicles, yes.

Hope it's better than that but --

It was 10.8 in October, right, which is

significantly the worst month of the year but obviously...

I think if there's a Chapter 11, first of all

one of the companies it will drag at least one...

The gentleman from Illinois.

Five minutes.

We had talked about an interest bearing loan, five

percent for the first four years I think...

Well I think things are difficult today. It is the

lowest level that the industry has run in...

Yeah. We expect to stay there for awhile but yes.

We're taking I think within Chrysler a more...

Yeah, I'm willing to continue to do what I've been

doing. I've had no cash bonuses three of...

I don't have a position on that today.

We have eliminated all of our bonuses also and also

any salary increases. We think that's absolutely...

I think it's, I understand your point about the

symbol and clearly the intent of what you're...

Understand.

I think I'm okay where I am.

The gentleman from Indiana. We have three more,

gentlemen.

Yes, sir.

Well, the legislation as written for 136

doesn't permit that --

I think it could work, yes.

A lot of the spending that we'll do under 136,

we're sort of starting right now. So it's not...

Well, I can tell you what we've said, when we

had a chance to talk to the speaker and her leadership...

Yes, sir. I would say that the 25 billion

(dollars) that we're asking for is to meet the immediacy...

We are doing everything humanly possible to

survive this current period.

Thank you, Mr. Chairman.

I want to thank you all for being here and for weathering a

almost...

Mr. Nardelli?

I understand that. What I'm saying to you is if we

linked the 2015 date to this bailout, would...

Thank you.

Mr. Mulally?

The gentleman from Massachusetts will be the final

questioner.

Well -- (chuckles) -- I personally -- I couldn't be

more aligned with you. I've dedicated my...