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Early Start with John Berman and Zoraida Sambolin

Largest Auto Recall in History; The War on ISIS; Deadly Biker Gang Brawl. Aired 4-4:30a ET

Aired May 20, 2015 - 04:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

[04:00:14] JOHN BERMAN, CNN ANCHOR: The largest auto recall ever: 34 million vehicles carrying air bags that could be deadly. Takata admitting its defective product could be linked to five deaths and more than 100 injuries. We're live with the very latest this morning.

CHRISTINE ROMANS, CNN ANCHOR: Does the White House need a new strategy in fighting ISIS? The terrorists making new gains in Iraq. The very latest on the American strategy, ahead.

BERMAN: Also, new information on what might have caused this deadly biker brawl in Texas. We have the latest from that remarkable scene.

Good morning, everyone. Welcome to EARLY START. I'm John Berman.

ROMANS: Nice to see you, everybody. I'm Christine Romans. It is Wednesday, May 20th. It is 4:00 a.m. in the East.

Developing this morning: a huge recall of Takata airbags -- an already large recall nearly doubling in size. The Japanese auto parts giant recalling airbags from -- get this -- 34 million vehicles. Nearly one in every seven cars on the road in the U.S., one in seven cars on the road will need to be recalled. It's expected to be the biggest, most complex consumer products recall in U.S. history.

This will cost billions of dollars. It will take years to get those cars off the road and fixed and returned to service. At least five deaths, dozens of injuries are tied to these faulty airbags which can fire shrapnel into drivers' faces when those airbags deploy.

Now, the recall affects dozens of different makes and models, including BMWs, Fords, Toyotas. Although a majority of these cars that are being recalled are made by Honda.

CNN's Will Ripley is standing by live for us in Tokyo with the latest.

Will, this company I think has been I think negotiating is the word -- been pressured by a regulators to do this recall, even pressured by its own customers, those are the carmakers to do this recall, and now says, yes, it will do it.

How long is it going to take them to make the replacement kits and get these cars fixed? WILL RIPLEY, CNN REPORTER: Well, they simply can't get the kits out

fast enough, Christine, because as you mentioned, this new announcement now, nearly doubling the recall to 34 million vehicles, making it the largest auto recall in history, it's going to be very difficult for Takata and all the automakers to keep up with all the customers that are going to be calling, wondering if their airbag fixed as quickly as possible. And so, some automakers -- including Honda -- are looking now perhaps alternate suppliers to try to get new airbags into these vehicles.

This is has been going on. There have been concerns about this airbags for a better part of a decade. Even some of Takata's own technicians, according to "The New York Times", sounded the alarm and basically, their concerns were unheeded.

And you had a situation where, you know, at least five deaths in the United States, minor accidents, a fender bender may cause the air bag to go off. And people are getting horrifically injured or killed. One man bled to death in front of his 17-year-old and yet, Christine, when we have gone to the company headquarters here in Tokyo trying to get answers, they've never granted us an interview. They've turned us today.

Even today, while confirming the numbers for the recall, they wouldn't put anything in context. Unlike Toyota who had a similar acceleration problem, after the initial response, they took ownership and really transparent, we're still not seeing that from Takata here in Japan, Christine.

ROMANS: All right. A lot of American consumers are wondering how long it's going to take and whether these cars are safe to drive.

What are they saying if you have a Takata air bag in your car right now, what are you supposed to do?

RIPLEY: People don't even know necessarily if their vehicles are affected because this information is just breaking. Hondas, Nissans, Chrysler, Ford, Toyota, BMW, the best thing customers can do right now is reach out to their had dealership, find out if their vehicle is affected and what the next step is.

And there, of course, the United States government has tried to make information available online. They'll be updating that as well. Just the bottom line, people need ask questions. If you're driving a vehicle, there's a 1 in 7 chance now that it could have an affected air bag in it.

ROMANS: Will Ripley, thanks for that.

In some cases, people asking if they should disable their air bags in the interim. Thank you so much for that, Will.

BERMAN: Happening now in Iraq, ISIS launching small attacks in the city of Khalidiya, just east of Ramadi. Ramadi, of course, fell into ISIS hands over the weekend. The Iraqi government sending Shiite militia fighters into Anbar province, largely Sunni dominated. It's also promising to arm Sunni tribesmen.

But local officials who are in Ramadi as it was it falling say the Shiite-dominated central government has failed to keep its promises to send enough support and weapons.

CNN's Jomana Karadsheh is following all the latest developments for us -- Jomana.

(BEGIN VIDEOTAPE)

JOMANA KARADSHEH, CNN CORRESPONDENT: John, Iraqi forces say that they have managed to repeal a number of small scale attacks by ISIS on al Khalidiya.

[04:05:03] This is an area east of Ramadi, between the cities of Ramadi and Fallujah. This at the same time as the Iraqis say that they are prepping and amassing their forces, that its Iraqi security forces and members of the popular mobilization unit, the PMUs, that are primarily made up of Shia militias with some Sunni tribal fighters. They say they are preparing for a counter offensive to regain controls of Ramadi. But no timelines have been set.

One thing is for certain, this is going to be a very complex operation. Anbar is unlike other areas where they have managed to regain control of cities like Tikrit, for example, from ISIS within a month. The landscape, the sectarian dynamics are going to play a huge role, when it comes to Anbar deploying these Shia forces into the Sunni heartland. Although Iraqi officials say that this came at the request of Sunni leaders and political leaders from the province. It is very risky.

A lot of concerns about the sectarian tensions with that. These forces have been accused in the past accused of carrying out attacks. Some of them in have been accused of carrying out attacks against Sunni population in areas. And, of course, as we saw in the past, the U.S. helped -- really having U.S. forces on the ground in 2006 and 2007, also recruiting these Sunni tribes in Anbar is what allowed them to gain control of Anbar at the time and win back that province from al Qaeda.

But so far, reluctance from the Sunni tribes, to join the fight, not all of them are joining the fight because of mistrust issues between the Shia-led government. And they say they've heard the promises from the Iraqi government to arm them in the past. And so far, they have not seen that happen -- John.

(END VIDEOTAPE)

ROMANS: All right. Thanks for that, Jomana.

The U.S. making adjustments in the ISIS strike in the wake of Ramadi's fall to the militant group. Officials say the president may accelerate training and weapons for Sunni fighters. U.S. strategy is hinged on Iraqi troops and local fighters standing up and stopping the ISIS advance. And that did not happen in Ramadi. It is a failure some Republicans are laying at the president's feet. (BEGIN VIDEO CLIP)

REP. JOHN BOEHNER (R-OH), SPEAKER OF THE HOUSE: We know that hope is not a strategy. The president's plan isn't working. It's time for him to come up with a real overreaching strategy to defeat the ongoing terrorist threat.

ROBERT GATES, FORMER SECRETARY OF STATE: I think even had there been no ISIS, that it would have been far better for us to maintain some presence, some troop presence in Iraq, for a much longer period of time.

(END VIDEO CLIP)

ROMANS: So what about a potential change in strategy?

CNN's Jim Acosta has more from the White House.

(BEGIN VIDEOTAPE)

JIM ACOSTA, CNN SENIOR WHITE HOUSE CORRESPONDENT: John and Christine, the president met with his national security team on the battle with ISIS. The meeting was only scheduled to include Defense Secretary Ash Carter, but ended up involving every security official from the vice president to the secretary of state and the CIA director.

And even though the White House is calling the terrorist group's capture of Ramadi over the weekend a, quote, "setback," officials say they're not conducting a formal review of the strategy for defeating ISIS.

But aides are saying they're looking at options for what they're calling an Iraqi-led mission to retake Ramadi. And pressed repeatedly on the mounting bipartisan criticism of the president's strategy, White House Press Secretary Josh Earnest lashed out at all the second guessing.

Here's what he had to say.

JOSH EARNEST, WHITE HOUSE PRESS SECRETARY: The thing is, we have to sort of decide what our approach to these issues is going to be. Are we going to light our hair on fire every time there's a setback in the campaign against ISIL? Or are we going to take very seriously our responsibility to evaluate those areas where we succeed and evaluate where steps are necessary for us to change our strategy where we sustain setbacks?

ACOSTA: The White House is not indicating that any U.S. ground forces will be going into Anbar province. Instead, White House officials say the assistance will come in the form of more air strikes on ISIS positions in Ramadi. Earnest points to other past battles in Kobani and Mt. Sinjar, where the U.S.-led coalition racked successes after questions were raised about the president's strategy.

As for Ramadi, the White House says its' the president's goal to see ISIS driven out of that city -- John and Christine. (END VIDEOTAPE)

BERMAN: All right. Jim Acosta at the White House.

Hillary Clinton is now addressing the questions about her e-mails during her tenure as secretary of state. She, of course, used a private account to conduct government business. At a campaign stop in Iowa, she urged the speedy release of the records.

(BEGIN VIDEO CLIP)

HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: I have said repeatedly, I want those e-mails out. Nobody has a bigger interest in getting them released than I do. I respect the State Department. They have their process that they do for everybody, not just for me, but anything that they might do to expedite that process, I heartily support.

(END VIDEO CLIP)

[04:10:02] BERMAN: It's remarkable she was answering questions at all. It's been sometime since the former secretary of state has taken question from reporters. The comments come after a federal judge rejected a State Department proposal to release 55,000 pages of Clinton e-mails by next January. The judge said the department should consider releasing the e-mails in batches.

Also this morning, "The Wall Street Journal" reports that when Mrs. Clinton was secretary of state, her staff scrutinized and sometimes blocked the release of politically sensitive documents that were requested as public records. They were FOIA-ed by news organizations.

ROMANS: Wisconsin Governor Scott Walker has still not revealed his presidential intentions but he appeared to be in full campaign mode during a visit to Capitol Hill. Walker was courting House Republicans, showcasing his gubernatorial credentials and asking a group of GOP lawmakers to imagine what they could do with majorities in Congress and a bold conservative in the White House. Walker says he expects to announce his 2016 plans at the end of June after finishing the Wisconsin state budget.

BERMAN: He said he's the most scrutinized politician in America, which is something I think Jeb Bush and Hillary Clinton might take issue with. Not to mention Barack Obama as the most scrutinized politician, Scott Walker does (ph).

There is new concern this morning about the health of Vice President Joe Biden's son Beau. Forty-six-year-old Beau Biden, the attorney general of Delaware, was being treated at a military hospital outside of Washington, D.C. It is not known specifically what he is being treated for. But a source with knowledge of the Biden family, close to the Biden family, calls it, quote, "serious".

In 2013, the former Delaware attorney general had surgery for a brain lesion. Three years earlier, he suffered a mild stroke.

ROMANS: We wish him well.

Time for an early start on your money this morning. U.S. stock futures barely moving. But stocks -- look at this -- a record territory. Yesterday, the Dow inched up to a closing record of second in a row.

Big news from Los Angeles this morning. It's boosting its minimum wage to $15 an hour. Lawmakers in the country's second largest city voted to boost the minimum wage to 15 bucks by the year 2020. The hike will affect about 600,000 low wage workers. Wages will start gradually rising next July. Small businesses with fewer than 26 employees, they will get an extra year to phase in that had minimum wage increase.

Seattle and San Francisco have already raised their minimums to $15 an hour. But Los Angeles the biggest city to do this.

Companies are rising wages as well. Walmart, the nation's biggest private employer, started boosting pay in April. Just yesterday, Walmart blamed higher wages for hurting profits, and the stock sank more than 4 percent.

BERMAN: New information on what may have caused a deadly biker brawl in Texas. Police identified the nine people who were killed.

(COMMERCIAL BREAK)

ROMANS: A bloody shoot-out between rival biker gangs in Waco, Texas, may have been triggered by a minor parking lot incident. Nine people were killed, 18 others wounds in what was absolute chaos at that Twin Peaks restaurant.

Police say a biker may have had his foot run over right before those bullets started flying. Investigators have already recovered dozens of weapons and they're still processing what is basically a huge crime scene.

We get more from CNN's Kyung Lah in Waco.

(BEGIN VIDEOTAPE)

KYUNG LAH, CNN CORRESPONDENT: Good morning, Christine and John.

Investigators have continued to go car to car, and what they're pulling automatic are even more weapons. We saw them pulling out long rifles, handgun, even a bulletproof vest. This is adding to the cache of weapons they've already recovered here at the scene, some 100 weapons, they say, that number now continuing to climb.

Meanwhile, a manhunt today ended up in a peaceful resolution. There were three suspects, according to the sheriff's department that were released on a lower bond. Their bond was set at $50,000 because they weren't arrested here in this parking lot. They were arrested just outside the perimeter.

But when the police found out they had a lower bond, their bond was revoked. There was a previous manhunt. Those three suspects were brought in. Their bond now set at $1 million just like the other 170 suspects.

And we're also learning more details from the police about how all of this began. They mentioned this started over a parking spot. Well, it may turn out that one of the bikers had his foot run over. That it could have started from something that simple. Nine people killed, according to a preliminary autopsy report. All of them killed with gunshot wounds. They were between the ages of 27 and 65 -- John, Christine.

(END VIDEOTAPE)

BERMAN: Kyung Lah for us in Texas.

New information this morning about a mysterious Washington, D.C. murder. Four victims found dead in their burned out Washington, D.C. home last week were reportedly held overnight by more than one attacker.

Sources tell WRC that whoever killed Savvas and Amy Savapoulos, their 10-year-old son and the family housekeeper knew a lot about their daily routine. Police have released a video of the family's Porsche. It was found burning in the parking lot of a Maryland church. Investigators are using bloodhounds to track down whoever set it on fire.

ROMANS: Prosecutors in Baltimore releasing new details supporting their position that the arrest of Freddie Gray was illegal. Statements and court papers from the state's attorney office say Gray was arrested before police even knew he had a knife. And they de didn't find the weapon until Gray was already handcuffed and placed in a prone position. Police lawyers maintain Gray's arrest was proper because he possessed an illegal weapon.

BERMAN: An Amtrak conductor critically injured in the deadly train derailment last week in Philadelphia is now suing the railroad for negligence. An attorney for 33-year-old Emilio Fonseca says he was taking a bathroom break when the train derailed, killing eight people and injuring more than 200. The conductor suffered a broken neck and back. He's one of five people hospitalized, in critical condition.

ROMANS: Breaking overnight, an oil spill in part of the central California coastline. Officials say an oil pipeline ruptured near Santa Barbara, creating an oil slick that stretched for miles in that popular beach area. An estimated 21,000 gallons of oil spilled. The coast guard and the emergency crews are working to contain it and clean it up.

BERMAN: The cruise ship Norwegian Dawn has finally been freed after running aground while trying to leave Bermuda. Officials say a malfunctioned in the steering system forced the ship slightly off course and it ran up on a coral reef. High tide helped to push it off the reef and into deeper water, 3,500 passengers on board. No injuries have been reported. They will inspect the cruise ship before it sets off again, headed for Boston and others. Bermuda is very, very nice.

ROMANS: New England Patriots quarterback Tom Brady --

BERMAN: Also very nice.

ROMANS: Yes, appealing his deflategate suspension. But his team will not. Patriots owner Robert Kraft says the team will reluctantly accept its punishment from the NFL, Berman. Kraft saying he wants to see the deflategate rhetoric that is going on for months, he wants it to end.

[04:20:02] The Patriots will pay $1 million. They will forfeit a fourth round pick in 2016, and a fourth round pick in 2017.

What does it mean that Kraft is parting ways, at least on this issue, with his top talent?

BERMAN: It's the opposite of what's happening here. My suspicion is there's some kind of back room wink-wink, that he will drop their appeal and perhaps Brady will have his suspension reduced some. I imagine it's somewhat in conjunction officially at least, unofficially.

Twenty minutes after the hour.

New arrest this morning in a major London jewel heist -- the theft of possibly hundreds of millions of dollars. Now weeks later, how police tracked down the suspect. That's ahead.

(COMMERCIAL BREAK)

BERMAN: New threatening rhetoric from North Korea, claiming the country has nuclear weapons enriched. Pyongyang's national defense commission warns the country now has the ability of miniaturizing nuclear war heads as a key step to fitting on them on missiles. North Korea is warning other countries not to challenge North Korea. Recent assessments form the Pentagon has suggested Pyongyang does indeed have the capability to shot a nuclear tipped missile.

ROMANS: The showdown brewing off the coast of Yemen. The Pentagon says an Iranian cargo ship flanked by two Iranian warships is heading towards a Yemeni port. Iran says the vessel was carrying humanitarian aid. Saudi Arabia and other Middle East nations accusing the Iranians of supplying weapons to the Houthi rebels in Yemen. The Iranians say they will not allow the Saudis or anyone else to inspect the humanitarian ship.

[04:25:05] BERMAN: More than 400 migrants reportedly stranded at sea for months have been rescued by a flotilla of fishing boats and taken safely to shore in Indonesia. They are the latest victims of a humanitarian crisis in Southeast Asia. The rescue comes after the Indonesian foreign minister said the country had given, quote, "more than it should" to help migrants stranded on boats by human smugglers.

ROMANS: Nine men ranging in age from 43 to 76 arrested in connection with that brazen Easter weekend heist in London, that drew comparisons to a Hollywood thriller, taking a major haul of valuables from safe deposit boxes, Scotland Yard saying a number of large bags of money have been recovered. More than 200 police officers helping arrest those suspects.

BERMAN: Happening now: the largest otter recall ever -- not otter, it's an auto recall, I said otter. It's not like a beaver.

(CROSSTALK)

BERMAN: It's a very big auto recall, 34 million vehicles in danger of having a deadly defect. We're live right after the break.

(COMMERCIAL BREAK)

ROMANS: The largest auto recall ever. Takata recalling nearly 34 million vehicles, one in seven cars on the road right now for a faulty air bag linked to five deaths and more than 100 injuries. We're live with what you need to know about your car this morning.

BERMAN: Terror gaining ground in Iraq. Is it time for the United States to change its strategy in the battle against ISIS? We're live.

ROMANS: And new information on what could have caused that deadly biker gang brawl in Texas, as police warned about the future attacks. The very latest, ahead.