CHARLES: FIRST OUR TOP STORY,
GENERAL MOTORS ANNOUNCING A
MAJOR RESTRUCTURING MOVE HOPING
TO GENERATE CASH.
THEY WILL SPEND IT ON
INNOVATION.
DESPITE U.S. AUTO SALES NEAR
HISTORIC HIGHS.
THE WHITE HOUSE OBVIOUSLY NOT
TOO HAPPY.
>> THERE IS DISAPPOINTMENT IT
SEEMS LIKE GM WOULD RATHER BUILD
ITS ELECTRIC CARS IN CHINA
RATHER THAN THE UNITED STATES.
WE ARE GOING TO BE LOOKING AT
CERTAIN SUBSIDIES REGARDING
ELECTRIC CARS AND OTHERS,
WHETHER THEY SHOULD APPLY OR
NOT.
I CAN'T SAY ANYTHING FINAL ABOUT
THAT BUT WE'RE LOOKING INTO IT.
AGAIN THAT REFLECTS THE
PRESIDENT'S OWN DISAPPOINTMENT
REGARDING THESE ACTIONS.
CHARLES: JOINING ME NOW,
BELLPOINTE CHIEF STRATEGIST
DAVID NELSON, SENIOR FELLOW AT
THE NATIONAL TAXPAYER UNION,
MATTIE DID YOU HAVE LETTER AND
PATRIOTIC CEO, ERIC SHIVER.
THE NEWS ITSELF, NOT A SURPRISE.
LOOK AT EARNINGS REPORTS, SALES,
CARS.
NO DOUBT THEY ULTIMATELY HAD TO
DO THIS.
MY PROBLEM IS THE HAM-FISTED WAY
THEY HAVE GONE ABOUT IT.
THE FACT GM DID THIS MAYBE A
YEAR TOO LATE.
THEY COULD HAVE DONE THINGS
PUTTING THEM ON BETTER
TRAJECTORY WHERE PEOPLE ARE
BUYING CARS AND PUBLIC RELATIONS
IMAGE, NOT CARS BUT VEHICLES?
>> KIND OF A SHOCKER IN A SENSE.
THEY'RE COMING OFF THE HEELS OF
THEIR BEST QUARTER EVER.
THEY'RE TRYING TO LOOK FORWARD
HERE ON THIS.
ABOUT 70 MILLION CARS MADE EVERY
YEAR.
THAT IS PROBABLY A CONSERVATIVE
ESTIMATE.
I THINK IF IT WAS ANY OTHER
COMPANY I THINK MOST OF US WOULD
SAY YEAH, THIS MAKES SENSE.
BUT YOUR TAX DOLLARS, MY TAX
DOLLARS, EVERYBODY OUT THERE,
THEIR TAX DOLLARS HELPED BAIL
THIS COMPANY OUT.
IT KIND OF STICKS IN OUR CRAW.
I CAN UNDERSTAND FRUSTRATION ON
BOTH SIDES OF THE I'LL.
CHARLES: MATTIE, LAST QUARTER
COMPANY HAD RECORD EARNINGS,
RECORD AVERAGE SELLING PRICE,
DESPITE THE FACT VOLUMES WERE
DOWN.
VOLUMES WERE DOWN ON CARS.
NO DOUBT THEY HAD TO MAKE THE
ANNOUNCEMENT.
WHAT ABOUT NOTION MAKING MORE
SUVs AND CROSSOVERS, THINGS
LIKE THAT?
ARE THEY BRACING FOR SOMETHING
ELSE?
SEEMS TO ME MARY BARRA THINK
THIS IS IS PEAK AUTOS AND THEY
WOULD RATHER FOCUS ON CASH FLOW
THAN PRODUCT?
>> I DISAGREE.
CEO, EFFECTIVELY BEEN A
TAXPAYER-FUNDED CONSERVATIVESHIP
LAST PART OF THE DECADE.
THIS IS A COMPANIES THAT
PREVIOUS GUEST STATED INOCULATED
FROM MARKET FORCES.
NOT BEEN ALLOWED BECAUSE OF
RESTRUCTURING FROM THE BAILOUT
HAS NOT BEEN ALLOWED TO RESPOND
TO MARKET FORCES.
CHARLES: THEY COULDN'T DO THAT A
YEAR AGO?
>> I DON'T KNOW WORKINGS OF GM I
DON'T KNOW WHETHER THEY CAN
RESTRUCTURE IT.
PEOPLE ARE NOT BUYING PLANTS.
AMERICANS ARE BUYING AMERICAN
SUVs.
AUTO COMPANIES NEED TO RECOGNIZE
THAT.
NEED TO PIVOT WHAT THEY NEED TO
BUILD IN PLANTS.
THAT IS RECIPE FOR DISASTER GOT
GM IN THE MESS IN 2008 TO BEGIN
WITH.
CHARLES: I'M NOT DISPUTING THAT.
LET ME REITERATE WHAT I'M
SAYING.
THEY COULD HAVE DONE THIS A
COUPLE YEARS EARLIER.
GENERAL MOTORS STOCK TWO YEARS
AGO TO TODAY UP 37%.
FIAT CHRYSLER IS UP 38%.
BOTTOM LINE THEY DID NOT ADDRESS
THIS.
TO COME OUT AT THIS TIME, ERIC,
I THINK POLITICAL RAMIFICATION
IT WILL HURT HEM.
THE REASON THE STOCK IS FLAT,
PEOPLE WERE OFFENDED AND A LOT
OF AMERICANS DID NOT BUY THIS
PRODUCT.
>> THEY SHOULD BE HE OAF --
OFFENDED CHARLES.
THIS IS PRETTY DISGUSTING.
HAD AMERICANS NOT STEPPED UP IN
2008.
IT WOULD BE DEAD.
WE SAVED THIS COMPANY.
FRANKLY THEY HAVE GOT A VERY
SHORT MEMORY.
THIS COULD HAVE BEEN DONE A YEAR
AGO.
THEY COULD HAVE WORKED WITH THE
ADMINISTRATION.
THEY COULD HAVE THOUGHT THROUGH
WORKERS BEST INTERESTS BUT
INSTEAD WHAT THEY'RE DOING IS, I
THINK VERY UNFAIR.
IT IS VERY DISLOYAL TO AMERICANS
WHO SAVED THIS, THIS COMPANY
WHEN YOU HAVE GOT A CEO WHO IS
MAKING $22 MILLION A YEAR.
WHEN THEY COULD HAVE PLANNED
THIS A LONG SOMETIME AGO.
YOU'RE PROVIDING A PLATFORM.
THIS IS MY BIGGEST CONCERN,
YOU'RE PROVIDING A PLATFORM FOR
FURTHER ANTI-CAPITALISM, WITH
SOCIALISTS LIKE CORTEZ FROM
NEW YORK WHO WILL USE THIS AS
FURTHER EVIDENCE THAT YOU CAN'T
TRUST CAPITALISM, YOU CAN'T
TRUST BUSINESS.
CHARLES: RIGHT.
>> AND TO ME THAT'S JUST NOT
RIGHT.
CHARLES: THERE WAS ALREADY ONE
ARTICLE I SAW, OUT OF
"THE WASHINGTON POST" SAID AS
MUCH.
BUT WE'RE GOING TO SEE A WHOLE
LOT MORE OF THESE.
AGAIN, THERE IS SOME BUSINESS
ISSUES.
I DON'T DOUBT THAT.
BUT THE WAY IT HAS BEEN
ARTICULATED.
FOR INSTANCE IN THE LAST QUARTER
THEY LOST MARKET SHARE
EVERYWHERE.
IN CARS THEY WENT TO 10.6% FROM
11%.
TRUCKS WENT TO 24% FROM 27%.
THE COMPANY HAS SERIOUS ISSUES.
INSTEAD OF SAYING HEY, YOU KNOW
WHAT?
WE KIND OF BLOWN IT LAST FEW
YEARS, WE GOT CAUGHT FLAT
FOOTED.
TALKING ABOUT THINGS LIKE
TARIFFS AND STUFF LIKE THAT.
THAT WILL HURT THEM WITH PEOPLE
LOYAL TO THE BRAND.
>> EVERYTHING YOU'RE SAYING
EVERYTHING YOU SAID ON THE SHOW
SO FAR IS TRUE.
BUT THERE IS LARGER DYNAMIC
GOING ON OUT THERE.
I THINK EVERY OTHER AUTO COMPANY
WILL HAVE TO MOVE INTO THIS.
WE'RE MOVING INTO A NEW SOCIETY.
WE'LL HAVE AUTONOMOUS CAR.
WE WON'T NEED 70 MILLION CARS A
YEAR.
THE AVERAGE CAR SITS DORMANT 2
IT HOURS OF EVERY DAY.
I THINK THIS IS THE COMPANY
STARTING TO RECOGNIZE THAT.
I THINK YOU WILL SEE OTHERS
FOLLOW SUIT.
FORD MIGHT BE THE FIRST TO GO.
CHARLES: MATTIE, THE C.A.F.E.
STANDARDS, YOU KNOW ALSO THE
LARRY KUDLOW TALKED ABOUT THE
SUBSIDIES FOR ELECTRIC VEHICLES,
TO WHAT DEGREE SHOULD GOVERNMENT
BE INVOLVED WITH THIS INDUSTRY
RIGHT NOW?
>> CHARLES, I THINK WHAT WE NEED
TO ASK FROM GOVERNMENT TO HAVE
AN ECOSYSTEM WHICH BUSINESSES
CAN INNOVATE AND THEY CAN
PROVIDE FOR THE INDUSTRY OF THE
FUTURE.
THAT MEANS FOR WORKERS AND FOR
CONSUMERS.
THE POINT MADE BY YOUR LAST
GUEST IS SO IMPORTANT.
AUTO COMPANIES ARE NO LONGER CAR
COMPANIES.
THEY ARE TECH COMPANIES.
THEY NEED TO BE INVESTING IN A
WAY THAT MAKES THEM COMPETITIVE
IN THE FUTURE.
THAT IS WHY, I DON'T SHARE THIS
NONSENSE ABOUT CEOs BEING PAID
TOO MUCH OR NOT MAKING RIGHT
MOVE AT RIGHT TIME.
WE'RE RIGHT NOW IN A ECOSYSTEM,
IN AN ENVIRONMENT WHERE WORKERS
CAN LOSE THEIR JOB AND FIND A
NEW ONE THE NEXT DAY.
WE HAVE 3.7% UNEMPLOYMENT.
THIS IS EXACTLY THE KIND OF
BUSINESS RESTRUCTURING YOU WANT
TO HAPPEN IN A ECONOMY WORKING
THE WAY IT IS SPOUSED TO RIGHT
NOW.
>> TELL THAT TO WORKERS JUST GOT
LAID OFF.
TELL THAT TO THE WORKERS ON THE
STREET.
>> THEY CAN GO WORK AT ANOTHER
GM FACTORY.
>> GET SERIOUS.
>> THEY CAN WORK AT ANOTHER GM
FACTORY MAKING DIFFERENT CARS.
>> THERE ARE 3,000 OF THEM WILL.
THE REST ARE NOT GOING TO BE
WORKING.
ONLY 3,000.
CHARLES: THERE IS TREMENDOUS
DEMAND FOR SUVs, FOR
CROSSOVERS, FOR PICKUP TRUCKS,
IN FACT THAT IS WHY THEY JUST
HAD ONE OF THE MOST PROFITABLE
QUARTERS IN THE HISTORY OF THE