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[0:07] ..." out of Motown these days. And in Detroit the center of the auto industry in this country is CBS's Jeff Gilbert Jeff first of all about the General Motors. Closings of factories not -- assembly. Lines but also stamping factories and some of the other General Motors facilities Khomeini UAW employees are going to be affected."...
[1:07] ..." of other people affected here is well and not just suppliers who. General Motors but also moved local people -- on the convenience store. Cut the grass for people who are busy at the factory and"...
[1:23] ..." this would be bigger battle -- the UAW members be protected. But GM also has some protection for the salaried workers were laid off because of this as well but if you work for a company that supplies General Motors you may not have that data protection. And if you ought to lay off -- You don't get -- Same thing a"...
[1:55] ..." And once those of vendors shut down their lines even if GM blows a whistle and says okay lets -- start making. Upon Nixon -- again it'll take awhile to perhaps that the the"...
[2:51] ..." the dealers have -- what's causing this problem I've read yesterday that GM figures they probably have. 85 months' supply of unsold pickup trucks between their GM unit and their -- lines. And what they want to do is to cut production of about 200000. Overall units that had"...
[4:23] ..." red now via Wall Street Journal front page story says this morning Chrysler is preparing to file for chapter eleven as soon as next week. And that Fiat is in alliance talks with. General Motors -- about Ford."...
[5:19] ..." And finally back to Chrysler for a loan which also has been in talks with -- the big Italian auto maker. If the journal is right and they file for chapter eleven what does that mean for Chrysler buyers dealers and the owners now."...
[5:34] ..." Well I would think for Chrysler buyers at first you might cease fire sale prices on some vehicles and in the journal story in particular he could take"...
[6:12] ..." anything at all that we're trying to do -- Clinton debt. If Chrysler can't get a deal with its lenders unions and Fiat by that time and everything fall apart. That could be a problem war for buyers because Chrysler court essentially go away as the car company. That would make it harder for future vehicles serviced the government will stand behind"...
[6:38] ..." CBS is Jeff Gilbert in Detroit this morning."...
[0:00]" Dickens wrote it was the best of times it was the worst of times in Detroit he got that half Floyd and a much good news coming out of Motown these days. And in Detroit the center of the auto industry in this country is CBS's Jeff Gilbert Jeff first of all about the General Motors. Closings of factories not -- assembly. Lines but also stamping factories and some of the other General Motors facilities Khomeini UAW employees are going to be affected."
[0:28]" We're talking in the yet tens of hundreds of thousands you wouldn't give as the number but still what what we're talking about it's kind of ruling closings at first. The initial reports were that we're going to shut most of their plans for nine weeks that would have been a lot worse than what really happened what we're seeing is about thirteen plants. Clothes for between two and three weeks to -- nine weeks. And that is -- impact of the area's economy people will be auto and employment that's -- to hurt some of the state state treasury role but many of the individual workers were laid off look at what's called supplemental benefits so -- take their -- to about 7080."
[1:05]" That would that is the UAW contingent there are plenty of other people affected here is well and not just suppliers who. General Motors but also moved local people -- on the convenience store. Cut the grass for people who are busy at the factory and everybody."
[1:20]" Exactly and it's it's -- collateral damage as you mentioned earlier this would be bigger battle -- the UAW members be protected. But GM also has some protection for the salaried workers were laid off because of this as well but if you work for a company that supplies General Motors you may not have that data protection. And if you ought to lay off -- You don't get -- Same thing a convenience store nearby may have delays somebody off a travel agent who worked for the plant does somebody -- supplies. Paper to a plant they have to eliminate jobs seek a multiplier is huge errors -- is. Ten jobs in the private sector or in other sectors for a Everett assembly line job."
[1:55]" And once those of vendors shut down their lines even if GM blows a whistle and says okay lets -- start making. Upon Nixon -- again it'll take awhile to perhaps that the the lifeblood of the factories that supply lines up who have where they ought to be."
[2:11]" What on that part of the issue of the suppliers at least have a time tape also saying no win their suppliers will be needed again but the problem is. Bagel and in the year anticipating a certain level production may anticipate they're going to have to make X numbers of mufflers or spark plugs. Our work whatever it is -- individual company makes for a vehicle if they're making less that means they're going to get it lasted -- a look at the triple what it takes so. That -- of their budget their bottom line what they expected. And many suppliers are all right on the -- they're living. Abruptly from bankruptcy so analysts I talk to receive this could sense of suppliers the bankruptcy."
[2:48]" That Jeff Gilbert the the inventory that the dealers have -- what's causing this problem I've read yesterday that GM figures they probably have. 85 months' supply of unsold pickup trucks between their GM unit and their -- lines. And what they want to do is to cut production of about 200000. Overall units that had been had been planned this year. What does that mean for people who were looking to buy. Vehicles will there be additional discounts or are. The disgusted have been announced whether it's in financing or cash back from the factory is that about his lucrative for buyers is is going to yet."
[3:25]" What that is that's really what the heart of this is is the companies are trying to not have to put as many discounts on vehicles so for consumers. That means there won't be as many left overall nine models that have. Big rebates on them like you saw last year. There won't be as many deals in the marketplace because traditionally these deals hurt the auto companies they cost them dearly -- way of doing things with the pop up the vehicles. And if people bitten by the people more sort of on the on the foot and that that's one of the things forgot the auto companies into the trouble that -- right now."
[3:57]" So for people there on the sidelines right now I think you all wait maybe it'll get better that probably is not -- yen less expensive."
[4:03]" You know I always -- to use the expression now it was a time to -- because everything rhetorical -- were real -- that's what they tell you. But truly at this particular point the analyst I talked Tuesday. The car companies are trying so hard to get their production in line with demand so they can cut incentives so these who would be the best deals we've seen some time."
[4:22]" Aren't -- in the red now via Wall Street Journal front page story says this morning Chrysler is preparing to file for chapter eleven as soon as next week. And that Fiat is in alliance talks with. General Motors -- about Ford."
[4:36]" Even though they're not asking for federal money. By no means means they're healthy big -- a look at how much cash to they've burned through. Ford is expected to say that the -- about four billion dollars in cash and the first quarter but a lot of money but they say their cost cut just starting to take effect. And they're doing everything they -- we're taking federal money they're doing everything -- candle of the public know the recording taking federal money. Because they're hoping that will separate them their competition. That will make people think of for his unique car company. Bottom line is in some ways forty is unique because. If -- or candy access to a line of credit before hand but and other ways it's still on the same messes everybody else because people just aren't buying --"
[5:19]" And finally back to Chrysler for a loan which also has been in talks with -- the big Italian auto maker. If the journal is right and they file for chapter eleven what does that mean for Chrysler buyers dealers and the owners now."
[5:34]" Well I would think for Chrysler buyers at first you might cease fire sale prices on some vehicles and in the journal story in particular he could take a look at its intriguing possibility. It says that they would have to file for bankruptcy protection even if they do get the deal with Fiat. Because that would let them cleanse themselves of some debts. What what it really means is that the message that debt holders who are trying to strike the best deal that they -- that. -- maybe we'll just go through bankruptcy it will shed as much of that that is possible and you better take the offer were giving you so that's what the big issue was there for bar areas. It probably wouldn't mean anything at all that we're trying to do -- Clinton debt. If Chrysler can't get a deal with its lenders unions and Fiat by that time and everything fall apart. That could be a problem war for buyers because Chrysler court essentially go away as the car company. That would make it harder for future vehicles serviced the government will stand behind the warranty but what that does for. -- residual value and go to sell the car the government can't do anything to protect."
[6:38]" CBS is Jeff Gilbert in Detroit this morning."
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