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Obama Lays out Auto Plan; Auto Stocks Drop as Worries About Bankruptcy Continue; Celebrating Earth Hour; More Dads Acting as Mr. Mom During Unemployment

Aired March 30, 2009 - 11:00   ET

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

TONY HARRIS, CNN ANCHOR: It is Monday, March 30th. And here are the top stories in the CNN NEWSROOM. The White House tells the CEO of General Motors to hit the road and says the auto industry is not doing enough. We will hear from the president any moment now.

Fargo, on the edge of disaster. Flood waters are going down, but a storm moving in today could spell more trouble for the already weary community. We will take you live to the danger zone.

Good morning, everyone. I'm Tony Harris and you are in the CNN NEWSROOM.

Struggling automakers under new pressure today to prove they can survive. At stake, billions of your tax dollars and the future of the entire industry. We expect President Obama to lay out his latest plans for the auto bailout shortly. We will have those remarks for you live right here in the NEWSROOM.

But here is what we know right now. General Motors CEO Rick Wagoner resigns at the direction of the White House. GM has 60 days to restructure and prove it can remain viable, Chrysler has 30 days. The administration is pushing Chrysler to finalize its merger with Italian automaker Fiat.

The Obama administration gives GM and Chrysler failing grades on their restructuring plans. So far, future bailout dollars depend on whether they can turn things around and pretty quickly, too. The mayor of Lansing, Michigan, backs the president's effort.

(BEGIN VIDEO CLIP)

MAYOR VIRG BERNERO, LANSING, MICHIGAN: I'm upbeat and optimistic today, this morning. The president has made a clear statement he believes in the auto industry. He believes the auto industry is crucial to the country's future. And now is the time to support the president and get behind this program.

So I'm actually hopeful that this is one bump in the road on the way to the cleaner, greener, automobile company that will be making the exciting new cars of the future.

(END VIDEO CLIP)

HARRIS: OK. Kate Bolduan, live from the White House with more on the president's plan.

And, Kate, great to see you. Basically, the president, in just a few minutes or so, is going to tell the nation what we just told everyone. But do we know whether the president is going to make a statement of commitment to the auto industry?

KATE BOLDUAN, CNN CORRESPONDENT: That's interesting, Tony. I wouldn't -- of course we never know exactly what the president is going to say, but I would expect that you're going to hear a commitment from President Obama.

I mean, if you just take what we've heard in remarks leading up to this, and what we've heard from senior administration officials, they say, look, they wouldn't be giving this extra time period and floating these companies in this 60- and 30-day period if they didn't want them to survive.

We've heard over and over again, the American auto industry is so important, such a critical part of the American economy that they do not want to see these companies fail. They reach out to too many different sectors, manufacturers, suppliers, car dealers.

And we've even heard from administration officials who, trying to offer a little optimism, saying that they're confident that GM can survive and thrive after major restructuring and concessions. They also continue to say, Tony, and I think you even mentioned it, two different companies, two different situations. Chrysler is in a much more difficult situation.

But they're still saying if they partner up with possibility the Italian carmaker Fiat, there will be still a Chrysler that we'll see here in the States in the future.

HARRIS: You know, I'm sort of curious -- Kate, I think we're inside the two-minute window here, so let's stay with you on this. I'm just sort of curious as to what specifically the administration wants. Does it just want the automakers to move more quickly on plans that they're already pursuing?

BOLDUAN: I think they -- these companies had quite a bit of time to put these plans together.

HARRIS: Absolutely. Yes.

BOLDUAN: Even before -- I mean, their deadline isn't even until tomorrow and the president and the administration is coming out to say, you know what? You get a failing grade, you have not proven your viability, as we keep hearing, in these plans.

I think the administration is saying, you didn't do what we asked, you are not proving that you have a path to viability, therefore, we want to give you one more shot to make this work before we have to talk about what's next.

HARRIS: Yes. And you're talking about two different companies here. Obviously, Ford seems to be in pretty decent shape, at least right now, so the focus is on General Motors and Chrysler. And yet, there are two different timetables being given to both of those companies.

Chrysler has a shorter window to turn things around, doesn't it?

BOLDUAN: Yes. And we've been asking about that. And the reason given to that is it's a different situation. They're not asking Chrysler to really look at restructuring their business plan any more because they've come to an agreement on purpose, an agreement and understanding with Fiat that they are looking into this partnership. They say they're far enough along in those discussions that they think 30 days will be enough to find out if this deal with Fiat is going to happen or not.

With GM, they say they need more time because they really need to get back to a fresh page, a clean start, really looking at more aggressively restructuring.

HARRIS: Yes. OK. Kate, if you would, stand by. I want to bring in Susan Candiotti into this conversation. She's in Warren, Michigan.

And, Susan, I'm interested to know whether or not the people that you're talking to in Warren, what their expectations might be for the president's comments this morning. I asked Kate a moment ago if the president is likely to make some kind of overall commitment to the auto industry. I would guess that would be something that workers there would like to hear.

SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT: Sure, they would. They would love to hear that because, for them, it's not about cutting jobs. It's about trying to save as many jobs as is possible. Now realistically, the union is very well aware that they're being asked to make difficult sacrifices.

They have got to be willing to give up health care benefits, some vacation benefits, as well as retirement benefits. Remember, GM is probably -- has the largest legacy of any, if not the largest, one of the largest legacies of any industry in the United States.

More retirees than any other company. And so that's a lot of people that have to be taken care of. So the president has already given some indication that there are going to have to be some painful, painful decisions that will be made in the coming days and months. And the union members are bracing themselves for that.

HARRIS: And I'm wondering, Susan, do you get a sense that what the Obama administration is really asking for is for you to -- we understand that you are making plans and some things you're pursuing right now, but we want you to hurry up already?

CANDIOTTI: Oh, sure. And so they know that this has been -- that they have been working on this for a long, long time. And the employees here are well aware that they weren't expecting this decision of forcing Wagoner to step down. But, frankly, some of them are saying if it's going to mean some new blood at the top to give us some new direction, while they certainly were satisfied with what Wagoner had done, they note that some new steps have to be taken.

HARRIS: And, well, that brings us to Rick Wagoner, who has been running GM for, what, how many years now? Eight years or so?

CANDIOTTI: Eight years.

HARRIS: Eight years. So why is he out? Is it part of a legacy and he's part of the legacy that has to go, out with the old and in with new?

CANDIOTTI: I think that that certainly is part of it. And while the employees know that he has done a good job, still they acknowledge, as do other analysts, that all of his decisions have not been perfect. There have been critical errors along the way with the choices, the plans for the future, what directions their cars, what models should be built.

And he spent a lot of time concentrating on SUVs, on pickup trucks, and that hasn't been the way. People have been looking for smaller, more...

(CROSSTALK)

HARRIS: All right. Susan, I appreciate it. Thank you so much. Let's take you to the president.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: ... what to do with the state of the struggling auto industry. In recent months, my auto task force has been reviewing requests by General Motors and Chrysler for additional government assistance as well as plans developed by each of these companies to restructure, to modernize and to make themselves more competitive.

Our evaluation is now complete. But before I lay out what needs to be done going forward, I want to say a few words about where we are and what led us to this point.

It will come as no surprise that some Americans who have suffered the most during this recession have been those in the auto industry and those working for companies that support it.

Over the past year, our auto industry has shed over 400,000 jobs, not only at plants that produce cars, but at the businesses that produce the parts that go into them, and the dealers that sell and repair them.

More than one in 10 Michigan residents is out of work, the most of any state. Towns and cities across the great Midwest have watched unemployment climb higher than it has been in decades.

The pain being felt in places that rely on our auto industry is not the fault of our workers. They labor tirelessly and desperately want to see their company succeed. It's not the fault of all the families and communities that supported manufacturing plants throughout the generations.

Rather, it's a failure of leadership from Washington to Detroit that led our auto companies to this point. Year after year, decade after decade, we've seen problems papered over and tough choices kicked down the road even as foreign competitors outpaced us.

But we've reached the end of that rope. And we as a nation cannot afford to shirk responsibility any longer. Now is the time to confront our problems head on and do what's necessary to solve them.

We cannot and must not and we will not let our auto industry simply vanish. This industry is like no other. This industry is like no other. It's an emblem of the American spirit, a once and future symbol of America's success.

It's what helped build the middle class and sustained it throughout the 20th Century. It's a source of deep pride for generations of American workers whose hard work and imagination led to some of the finest cars the world has ever known.

It's a pillar of our economy that has held up the dreams of millions of our people. Now, we cannot continue to excuse poor decisions, we cannot make the survival of our auto industry dependent on an unending flow of taxpayer dollars.

These companies and this industry must ultimately stand on their own, not as wards of the state. And that is why the federal government provided General Motors and Chrysler with emergency loans to prevent their sudden collapse at the end of last year, only on the condition that they would develop plans to restructure.

In keeping with that agreement, each company has submitted a plan to restructure. But after careful analysis, we've determined that neither goes far enough to warrant the substantial new investments that these companies are requesting.

And so today, I'm announcing that my administration will offer GM and Chrysler a limited additional period of time to work with creditors, unions and other stakeholders to fundamentally restructure in a way that would justify an investment of additional taxpayer dollars. During this period they must produce plans that would give the American people confidence in their long-term prospects for success.

Now, what we're asking for is difficult. It will require hard choices by companies. It will require unions and workers who have already made extraordinarily painful concessions to do more.

It will require creditors to recognize that they can't hold out for the prospect of endless government bailouts. They'll have to -- it will require efforts from a whole host of other stakeholders, including dealers and suppliers.

Only then can we ask American taxpayers who have already put up so much of their hard-earned money to once more invest in a revitalized auto industry.

But I'm confident that if each are willing to do their part, if all of us are doing our part, then this restructuring, as painful as it will be in the short-term, will mark not an end, but a new beginning for a great American industry, an auto industry that is once more out-competing the world, a 21st Century industry that is creating new jobs, unleashing new prosperity, and manufacturing the fuel- efficient cars and trucks that will carry us towards an energy independent future.

I am absolutely committed to working with Congress and the auto companies to meet one goal, the United States of America will lead the world in building the next generation of clean cars.

Now no one can deny that our auto industry has made meaningful progress in recent years, and this doesn't get talked about often enough. Some of the cars made by American workers right now are outperforming the best cars made abroad.

In 2008, the North American car of the year was a GM. This year, Buick tied for first place as the most reliable car in the world. Our companies are investing in breakthrough technologies that hold the promise of new vehicles that will help America end its addiction to foreign oil.

But our auto industry is not moving in the right direction fast enough to succeed in a very tough environment. So let me discuss what measures need to be taken by each of the auto companies requesting taxpayer assistance. And I'll start with General Motors.

GM has made a good-faith effort to restructure over the past several months, but the plan that they've put forward is, in its current form, not strong enough. However, after broad consultation with a range of industry experts and financial advisers, I'm absolutely confident that GM can rise again, providing that it undergoes a fundamental restructuring.

As an initial step, GM is announcing today that Rick Wagoner is stepping aside as chairman and CEO. This is not meant as a condemnation of Mr. Wagoner, who has devoted his life to this company, and has had a distinguished career. Rather, it's a recognition that it will take new vision and new direction to create the GM of the future.

In this context, my administration will offer General Motors adequate working capital over the next 60 days. And during this time, my team will be working closely with GM to produce a better business plan.

They must ask themselves, have they consolidated enough on profitable brands? Have they cleaned up their balance sheets or are they still settled with so much debt that they can't make future investments?

Above all, have they created a credible model for how not only to survive, but to succeed in this competitive global market? Let me be clear, the United States government has no interest in running GM. We have no intention of running GM. What we are interested in is giving GM an opportunity to finally make those much- needed changes that will let them emerge from this crisis a stronger and more competitive company.

The situation in Chrysler is more challenging. It's with deep reluctance, but also a clear-eyed recognition of the facts that we've determined after careful review that Chrysler needs a partner to remain viable.

Recently Chrysler reached out and found what could be a potential partner, the international car company Fiat, where the current management team has executed an impressive turnaround.

Fiat is prepared to transfer its cutting edge technology to Chrysler, and after working closely with my team, has committed to building new fuel efficient cars and engines right here in the United States.

We've also secured an agreement that will ensure that Chrysler repays taxpayers for any new investments that are made before Fiat is allowed to take a majority ownership stake in Chrysler.

Still, such a deal would require an additional investment of taxpayer dollars. And there are a number of hurdles that must be overcome to make it work. I'm committed to doing all I can to see if a deal can be struck in a way that upholds the interests of American taxpayers.

And that's why we'll give Chrysler and Fiat 30 days to overcome these hurdles and reach a final agreement. And we will provide Chrysler with adequate capital to continue operating during that time.

If they are able to come to a sound agreement that protects American taxpayers, we will consider lending up to $6 billion to help their plan succeed. But if they and their stakeholders are unable to reach such an agreement, and in the absence of any other viable partnership, we will not be able to justify investing additional tax dollars to keep Chrysler in business.

Now, while Chrysler and GM are very different companies with very different paths forward, both need a fresh new start to implement the restructuring plan they develop. That may mean using our bankruptcy code as a mechanism to help them restructure quickly and emerge stronger.

Now, I want everybody to be clear about this. I know that when people hear the word "bankruptcy," it can be unsettling. So let me explain exactly what I mean.

What I'm talking about is using our existing legal structure as a tool that, with the backing of the U.S. government, can make it easier for General Motors and Chrysler to quickly clear away old debts that are weighing them down so that they can get back on their feet and on to a path to success, a tool that we can use even as workers staying on the job, building cars that are being sold.

What I'm not talking about is a process where a company simply is broken up, sold off and no longer exists. We're not talking about that. And what I am not talking about is a company that's stuck in court for years unable to get out.

So it's my hope that the steps I'm announcing today will have a salutary effect, will go a long way towards answering many of the questions that people have about the future of GM and Chrysler.

But just in case there are still nagging doubts, let's me say it as plainly as I can, if you buy a car from Chrysler or General Motors, you will be able to get your car serviced or repaired just like always. Your warranty will be safe.

In fact, it will be safer than it has ever been because starting today, the United States government will stand behind your warranty. But we must also recognize that the difficulties facing this industry are due in no small part to the weaknesses in our economy as a whole.

And therefore, to support the demand for auto sales during this period, I'm directing my team to take several steps. First, we will ensure that Recovery Act funds to purchase government cars get out as quickly as possible and work through the budget process to accelerate other federal fleet purchases, as well.

Second, we'll accelerate our efforts through the Treasury Department's consumer and business lending initiative. And we are working intensively with the auto finance companies to increase the flow of credit to both consumers and dealers.

Third, the IRS is launching a campaign to alert consumers of a new tax benefit for auto purchases made between February 16th and the end of this year. If you buy a car any time this year, you may be able to deduct the cost of any sales and excise taxes. And this provision could save families hundreds of dollars and lead to as many as 100,000 new car sales.

Finally, several members of Congress have proposed an even more ambitious incentive program to increase car sales while modernizing our auto fleet. And such fleet modernization programs which provide a generous credit to consumers who turn in old, less fuel efficient cars and purchase cleaner cars have been successful in boosting auto sales in a number of European countries.

I want to work with Congress to identify parts of the Recovery Act that could be trimmed to fund such a program and make it retroactive starting today.

Now let there be no doubt, it will take an unprecedented effort on all of our parts, from the halls of Congress to the boardroom, from the union hall to the factory floor, to the auto industry through these difficult times.

And I want every American to know that the path I'm laying out today is our best chance to make sure that the cars of the future are built where they've always been built, in Detroit and across the Midwest, to make America's auto industry in the 21st Century what it was in the 20th Century, unsurpassed around the world.

The path has been chosen after consulting with other governments that are facing this crisis. We've worked closely with the governments of Canada on GM and Chrysler as both of those companies have extensive operations there.

The Canadian government has indicated its support for our approach and will be announcing their specific commitments later today.

While the steps I'm taking will have an impact on all Americans, some of our fellow citizens will be affected more than others. So I'd like to speak directly to all of those pollen and women who work in the auto industry or who live in countless communities that depend on them.

Many of you have been going through tough times for longer than you care to remember. And I won't pretend that the tough times are over. I can't promise you there isn't more difficulty to come. But what I can promise you is this.

I will fight for you. You are the reason I'm here today. I got my start fighting for working families in the shadows of a shuttered steel plant. I wake up every single day asking myself: What can I do to give you and working people all across this country a fair shot at the American dream?

When a community is struck by a natural disaster, the nation responds to put it back on its feet. Well, the storm that has hit our auto towns is not a tornado or a hurricane. The damage is clear and we must, likewise, respond.

That's why today I'm designating a new director of recovery for auto communities and workers to cut through the red tape and ensure that the full resources of our federal government are leveraged to assist the workers, communities, and regions that rely on our auto industry.

Edward Montgomery, a former deputy labor secretary, has agreed to serve in this role. And together with Labor Secretary Solis and my auto task force, Ed will help provide support to autoworkers and their families, and open up opportunity to manufacturing communities in Michigan, and Ohio, and Indiana, and every other state that relies on the auto industry.

They will have a strong advocate in Ed. He will direct a comprehensive effort that will help lift up the hardest-hit areas by using the unprecedented levels of funding available in our Recovery Act and throughout our government to create new manufacturing jobs and new businesses where they're needed most, in your communities.

And he will also lead an effort to identify new initiatives we may need to help support your communities going forward. Now, these efforts, as essential as they are, are not going to make everything better overnight. There are jobs that won't be saved. There are plants that may not reopen. There's little I can say that can subdue the anger or ease the frustration of all whose livelihoods hang in the balance because of failures that weren't theirs.

But there's something I want everybody to remember. Remember that it is precisely in times like these, in moments of trial and moments of hardship that Americans rediscover the ingenuity and resilience that makes us who we are.

That made the auto industry what it once was and what it will be again. That sent those first mass-produced cars rolling off the assembly lines. That built an arsenal of democracy that propelled America to victory in the Second World War. And that powered our economic prowess in the first American century.

Because I know that if we can tap into that same ingenuity and resilience right now, we can carry one another through this difficult time and do what must be done. Then we will look back and say that this was the moment when the American auto industry shed its old ways, marched into the future, remade itself and once more became an engine of opportunity and prosperity, not only in Detroit, not only in our Midwest, but all across America.

I'm confident we can make that happen. But we've got a lot of work to do. Thank you. Thank you, everybody.

HARRIS: And there you go, President Obama from the Grand Foyer of the White House, laying out his plan for the automobile industry, essential 30 days for Fiat and Chrysler, really, to merge and 60 days for GM to clean up its books and present a plan to not only survive, but thrive.

Let's bring in Kate Bolduan at the White House, and Susan Candiotti is in Warren, Michigan.

And, Kate, let's start with you. I asked you a question at the top of this newscast wondering whether the president would offer a clear-eyed statement of support for the auto industry and it sounds like we got that.

He said: "We cannot and we must not and we will not let our auto industry simply vanish." But it's going to look different, isn't it?

BOLDUAN: Yes. I think the answer to your question is a resounding yes. He said in several different places in this speech, he made it very clear that he is making a statement, a commitment not only to the auto industry, but to the autoworkers and the communities that are so affected by the auto industry.

But it comes with but, hang on a second. It's not just more money throwing at a problem which he says is the problem right now. They don't have viable plans. If we give them more taxpayer dollars, it's not going to be put to good use. And that's why he says with the clear eye, he said at one point, that I understand with Chrysler, they're not going to be able to stand alone. They need a partner. They've found a partner. Hopefully that deal can be struck in 30 days.

And with GM, they're going to be talking about major concessions and he ticked that off. They need to figure out how to unload -- how to clear up their balance sheets. They need to figure out if they're producing the right vehicles, all of those things. So you heard a definite commitment of yes.

I think it's also interesting, if I could just quickly note, I think there was a tone, you know, other than what we heard, getting the information out there, of what the plan is. There's a tone that you heard throughout this speech of trying to boost confidence or a tone of he was trying to reassure the American public at several different places, let me be clear, we're not going to let them go into bankruptcy.

HARRIS: Right. And explaining the process that could happen and how bankruptcy could be a way for this company, and particularly Chrysler to survive and come out a bit stronger.

BOLDUAN: If we've learned anything, consumer confidence, when it comes to the American economy and businesses, is so key. And I think that's the note that he was trying to hit right there. We've got a rough road ahead, but believe me, we're going to get there...

(CROSSTALK)

HARRIS: And, Kate, did you hear the other note? He is really sort of trying to reassure people that if you buy these American cars, if you buy these cars from Chrysler, if you buy a car from GM, look, we've got you, we will support you, we will guarantee the warranty. Let's listen to the president making that very point just moments ago.

(BEGIN VIDEO CLIP)

OBAMA: If you buy a car from Chrysler or General Motors, you will be able to get your car serviced and repaired just like always. Your warranty will be safe. In fact, it will be safer than it has ever been, because starting today, the United States government will stand behind your warranty.

(END VIDEO CLIP)

HARRIS: And, Kate, important for the president, in your view, to have made that statement?

BOLDUAN: It's very important. It was a point that senior administration officials were really trying to drive home. Listen here, even if they really fall into trouble in the next 60 and 30 days, don't worry, we are backing up your warranty. You can still get your car serviced.

Basically trying to say, don't hold off on buying cars. If you were thinking about going to get one, go get one. We are backing your warranty, trying to boost that consumer confidence to get that economy going.

HARRIS: Kate Bolduan, at the White House for us. Kate, appreciate it. Thank you. Let's bring in our Susan Candiotti. She is in Warren, Michigan.

And, Susan, I really was struck by the comments from the president. He was talking about how this industry has been so important to so many Americans, raising their standard of living for decades upon decades now.

The president saying, look, it is not the fault of all of the families and communities that supported manufacturing plants throughout the generations, rather, it is a failure of leadership from Washington to Detroit that led our auto companies to this point.

CANDIOTTI: Well, I think, Tony, that you will not hear any argument about that, about what the president said. You won't hear any arguing about that from any of the union workers here.

And they have maintained all along that they have been working as hard as they could to try to keep the company afloat, doing their job to try to buy the very same cars that they manufacture.

And one thing that they said -- some of the workers did, before the president's remarks, I asked, do you have a message for him? And they said, help us, please. And then they added that they are convinced in their own mind before hearing the remarks that the president would not let the big three -- and certainly GM in particular, allow this company to fail after being in business for so many years.

HARRIS: Yes. Well, Susan...

CANDIOTTI: Now, of course -- yes.

HARRIS: Well, Susan, it sounds like, then, the music to their ears would have been the same comment that I read to Kate just a moment ago. "We cannot, we must not and we will not let our auto industry simply vanish."

CANDIOTTI: That's correct. And so, I think that as soon as these workers get out of the plant and, frankly, take a lunch break or at the end of their shift, because we have not been able to talk to them to get their reaction, I'm sure that once they hear what the president said, that they would likely react favorably.

But still, there's that - that thing that they have to worry about -- the hard, painful cuts that they know they're going to have to make. And so far, the union has given some back, but certainly not enough, according to most analysts.

HARRIS: Well, there she is, Susan Candiotti, for us in Warren, Michigan. Susan, appreciate it. Thanks for your help on the story.

Billions of dollars to save the U.S. auto companies. Will it save jobs? Will it work?

(COMMERCIAL BREAK)

HARRIS: So the government has unveiled new plans to rev up Detroit. The reaction on Wall Street? Where are those numbers? We usually squeeze them in the corner - oh, there it is. The numbers? Well, a big sell-off is what we have going on right now. Susan Lisovicz is - thanks, guys - is at the New York Stock Exchange with details.

And Susan, with the news, I guess it was yesterday that broke that the administration government was not happy with the recovery plans from GM and Chrysler and also the indication from the U.S. Treasury that the big banks may need more help. You know, this - this was always going to be a difficult day for stocks. Am I right in that?

SUSAN LISOVICZ, CNN CORRESPONDENT: You're so right, Tony. I mean, it's not only the fact that the government is getting more involved, it's the fact that Secretary Geithner addressed the looming concerns about the banking industry. We're also coming off three straight weeks of gains.

And finally, we're at this sensitive period. I don't want to get to wonky here, but we're right at the end of the first quarter and companies are going to start talking about how tough it was. And so it's a very nervous time, anyway.

And what you're seeing a huge sell-off. We saw it happening in Asia, that Asia and Europe were selling off. And auto stocks leading the way down. Right now, GM shares are down 22 percent or trading under $3.00 a share. This is a stock that was approaching $80 at one point and the forced resignation of CEO Rick Wagoner shows that Uncle Sam is getting more involved in Motor City.

In the meantime, what you're seeing, yes, Blue Chips are down nearly 300 points. Basically, three major averages all down about 3.75 percent so it's a very sharp sell-off, Tony.

HARRIS: How likely, in your estimation, Susan, is it that GM, Chrysler or both could, might go bankrupt?

LISOVICZ: I think it's very possible. I mean, just think about the time we're in, one of the worst recessions ever, the worst financial crisis since the Great Depression, they're trying to sell big ticket items when they had problems when times were good. And the Obama administration is giving them a very short leash - 30 days for Chrysler, 60 days for GM. Yes, sure, structured bankruptcy is indeed possible.

These companies, by the way, like most other companies, would continue operating while they are in bankruptcy. There is more confidence about GM's future. Why is that? GM sells a lot of cars overseas, more cars overseas. Chrysler, meanwhile, more reliant on U.S. sales. And President Obama just said something that is pretty clear. If it doesn't have a partner and that partner is Fiat, it's going to find another partner or it's going to be allowed to fail.

HARRIS: Or it's gone, yes. Yes.

All right, Susan, appreciate it. Thanks for the help.

LISOVICZ: You're welcome.

HARRIS: We want to get to our other big story right now and we're talking about flood-ravaged North Dakota now bracing for a major storm. The last thing that community needs.

These images from CNN iReporter Greg Cook. He's in Fargo. He's one of thousands of volunteer sandbaggers helping to hold back the Red River as it reached its highest level in history over the weekend. Greg describes the community effort in Fargo as absolutely amazing.

Problem now, the sandbag dikes could be tested by the snowstorm that is headed their way. Our Susan Roesgen joins us now by phone from the other side of the Red River in Moorhead, Minnesota.

And if you would, Susan, let's start with you sort of discussing this new storm and the real danger it poses.

SUSAN ROESGEN, CNN CORRESPONDENT (via telephone): Well, the danger, Tony, is not so much from the snow. Even if it's as much as six inches or a little bit more than that, whatever they're predicting, they don't think the snow melt is going to be a factor. What they're worried about is the winds. This is a very powerful storm and if the winds are as strong as they expect, that could actually create waves in the flood waters and those waves could hammer the dikes and possibly make them unstable.

HARRIS: Susan, if you would, I think I saw you earlier in Heidi's show, you were walking - am I correct here, you were walking through a home. Won't you set that up? I believe we have a bit of a chunk of that.

ROESGEN: Well, sure. This is a very typical scene here, Tony, whether you're in Fargo or in Moorhead. The homeowners who lived - actually, very far from the river, more than a football field away as this particular gentleman's home is situated, they are finding that the dikes are not enough. It's not enough of a defense. So they have pumps in their backyards up and down these neighborhoods. And the pumps are working 24/7, electric pumps, to push water back out. Whatever water seeps in, they're trying to push it out.

Again, these are electric pumps and you can imagine electricity and water, they don't mix. Besides the danger, there's a possibility, always, that the pumps could fail, the power could go out. So what we're finding is people, Tony, are not even sleeping. They're doing this in shifts; neighbors watching out for neighbors. Taking breaks and while one neighbor sleeps, the other neighbor will check his neighbor's pumps. And they're really getting to know each other, Tony. I think in a crisis, no one is a stranger.

HARRIS: Susan, appreciate it. Stay safe. I know you're moving your location and maybe we'll get to see you next hour right here in the NEWSROOM. Susan Roesgen for us. Susan, thank you.

And let's get you quickly to our meteorologist Rob Marciano at the CNN Severe Weather Center.

(WEATHER REPORT)

HARRIS: For now, he's Mr. Mom, but a laid-off electrician is hoping the stimulus can actually spark construction projects and get him rehired.

(COMMERCIAL BREAK)

HARRIS: Prep work begins today on the next official counting of Americans, more than 125 million addresses need to be verified for the 2010 census. Some 140,000 workers are actually - 45,000 census workers will actually go to work in pulling all of the numbers together. They'll actually go door to door to ensure every household gets a questionnaire next April since this data is used to allocate more than $300 billion in federal funds. That happens every year.

OK. Millions of people from around the globe went dark all in the effort to go green for the Third Annual Earth Hour. Let's take a trip to CNN.com's iReport desk and check in with producer Tyson Wheatley; "Tyson's Corner."

TYSON WHEATLEY, CNN.COM PRODUCER: Hey, Tony.

HARRIS: Good to see you, sir.

If this works out the way I believe, this could be pretty cool. You've got iReports from folks from all around the world?

WHEATLEY: All across the globe. Yes.

HARRIS: How about that?

WHEATLEY: It's really great. You know, of course, we're talking about Earth Hour. And this Saturday, millions of homes and businesses went dark for one hour.

HARRIS: Yes?

WHEATLEY: It was a symbolic gesture to basically to highlight global concerns over climate change. And more than 2,800 cities and towns took part.

Basically, we're talking about at 8:30 p.m. local time all across the globe, a day-long energy saving marathon in 83 countries and 24 time zones. And some of our iReporters were there on the scenes to show us what they did during this 60 minutes without power.

This first one comes to us from New York City. Obviously, we're looking at the Empire State Building. These were photos snapped by Darren Philip. He took a minute before and a minute after 8:30.

HARRIS: That's pretty cool. WHEATLEY: Great shot right there.

Meanwhile, another iconic image coming from New York. This is one, however, stayed relatively bright. This is from Parker Roe. He took this photo by candlelight from his apartment in Hell's Kitchen which overlooks Time's Square.

HARRIS: Boy, that's nice, huh?

WHEATLEY: He says that Times Square was actually a bit of a bust. You can see some areas there dark around it, but some billboards still clearly very bright.

HARRIS: I just love the shot. That's a great shot.

WHEATLEY: He's got a great view.

All right, let's head to Paris where another iconic image. The, of course, the Eiffel Tower completely dark. This comes to us from Tiago Marques, he's a sound engineer who says Earth Day is an important, global call to action.

In Dubai, we heard from iReporter Sharad Agerwall. And he turned out the lights and sat down with a candlelight dinner with his family. He says that going green, he believes it's everything and he believes in everything that goes with it.

And let's head to Sweden.

HARRIS: I'm with you.

WHEATLEY: You know, a lot of folks decided to switch off their lights and go for a walk. That's what Kari Eklumd did. And he used his mobile device to snap these before and after shots at the Royal Castle of Stockholm.

And if we want, let's come back home, back to Los Angeles, actually, where Marie sager spent Earth Hour atop the Griffith Park Observatory overlooking L.A.

HARRIS: Yes.

WHEATLEY: And she sent some great photos. The first one is before the sun went down. And this next image she sent to us right as the clock was hitting 8:30. The lights at Griffith Park Observatory are off at this point, but there's still a lot of lights in the valley. A few minutes later, she sent another photo and you can see it's gone very dim.

HARRIS: Wow.

WHEATLEY: Very cool. Nice work, Marie.

HARRIS: You just wonder how many people actually participated in that. I don't know if there's any way to know. But that - judging by the iReports, that's a pretty good response, huh? WHEATLEY: Yes. Well, the organizers of this event, the World Wildlife Fund, they said that actually -- they're saying that millions of people took part in this and they're calling it a huge success today. Environmental activists are saying this is a clear mandate that nations need to address global climate change.

But if you participated in Earth Hour, we want to know how you spent those 60 minutes. Go to iReports.com, share your photos, share your videos, tell us what you did.

HARRIS: Good stuff. That's awesome. All right, Tyson, good to see you, sir.

WHEATLEY: Good to see you. Take care, Tony.

HARRIS: Your tax dollars, hard at work, trying to keep America's auto industry afloat. We break down just how many workers rely on the big break.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: When a community is struck by a natural disaster, the nature responds to put it back on its feet. While the storm that has hit our auto towns is not a hurricane or tornado, the damage is clear and we must likewise respond.

(END VIDEO CLIP)

HARRIS: President Obama on the future of the auto industry and the bailout. A lot of jobs, obviously are riding on the outcome of all this. Christine Romans of our CNN Money Team live from New York.

I was so struck by the president making the comments about the number of people in this country who, through the auto industry, had their shot at the American dream, saw their incomes just continue to go up and up and up because of that industry. And the thought that this industry is in such crisis right now, I can't tell you how many members of my family, if not for the auto industry, I have no idea where they'd be.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: And, Tony, that's millions of American families. And you're right. The American auto industry is essentially the blueprint for the middle class lifestyle. A blueprint that other countries around the world are trying to emulate by building up their own manufacturing base, quite frankly, so they can build up their own middle classes. And here ours is in decline, as everywhere around the world they're trying to build it up.

I mean, this is a place where you could get your foot in the door and you could work hard and you could make enough money to put your kids through college so that they could make the next step up, but that there was always a place to get in. And you'll hear from some people, you know, oh, it's an old manufacturing sector, it didn't innovate. There's an awful lot of innovation frankly in the American manufacturing in the auto industry.

And when you look, Tony, I've got a map for you here of the ten states with auto jobs. I mean, this is not Detroit. This is not the big three. There are ten states that have a big concentration of auto jobs. According to the Center for American - Automotive Research, rather, there are 500,000 jobs that are suppliers, that supply to these things that are outside of the three major U.S. auto workers. There are two million jobs overall, so spread out around the country. The auto parts makers, by the way, got their own, quote, unquote, "bailout," low interest loans earlier this month, about $5 billion.

So, you know, it's a very difficult situation all across the country for people tied to the auto industry.

HARRIS: You know what, Christine, I want to talk about this more, but we don't have the time. But you're back with us next hour, correct?

ROMANS: Yes. Yes.

HARRIS: OK, great. OK, we'll see you then.

ROMANS: OK.

HARRIS: Again, we're going to dig a lot deeper into the auto crisis next hour. So as just mentioned, Christine will be back with us, along with Peter Valdez Depena of CNNmoney.com. Our discussion is forward thinking, including what more can GM and Chrysler do to save themselves.

We've also got help for you on how to land a job at a job fair. Don't miss this, if you're among millions of Americans looking for work or if you know someone who is, I will be joined by career savvy expert Tori Johnson who specializes in helping women get top notch jobs, but her advice is good for everyone.

And, of course, we're staying on top of the flood situation in North Dakota, people bracing there for a big snowstorm just as the Red River starts receding from its record high. We will take you there live.

(COMMERCIAL BREAK)

HARRIS: Unemployment is up in all but one of the 50 states. Michigan took the biggest hit as well as the Carolinas and California. See where your state ranks by clicking on to CNNmoney.com.

The layoff was shocking, the future uncertain, but an electrician now has hope stimulus money can create projects so his former employer can rehire him.

CNN's Kara Finnstrom reports.

(BEGIN VIDEOTAPE)

PEDRO HARO, UNEMPLOYED ELECTRICIAN: I'm Mr. Mom. I'm taking the kids to school, picking them up, I get their lunches ready, I cook dinners. You know, my wife's working, not me now.

KARA FINNSTROM, CNN CORRESPONDENT (voice-over): Pedro Haro's family has undergone radical changes since November when he was laid off from seven years with an electric contractor.

HARO: I went from $6,000 a month income to $1,600 a month. It's hurt a lot.

Let's get a batter up.

FINNSTROM: The only bright side? More time to coach his son's little league team.

HARO: It's making me a better father, you know, because I'm with them more.

FINNSTROM: But the family is struggling. They've dropped medical insurance, a huge worry. And the hardest changes may be yet to come. In three months, Haro's unemployment checks will stop.

HARO: I don't know what we're going to do. You go from $30-plus an hour, I'm going to have to go to a $10-an-hour job just to, you know, bring food into the house.

FINNSTROM: Haro's big hope? The stimulus bill and what it may mean for companies like his former employer, Bergelectric. Berg works on big projects like office buildings, hospitals and water treatment plants.

THOMAS ANDERSON, BERGELECTRIC CORPORATION: We understand that there are at least 12 projects that we've been tracking in California that could benefit from the stimulus moneys.

FINNSTROM (voice-over): If that happens, Bergelectric hopes to hire back some of the more than 300 workers it's laid off in southern California, close to half its construction force.

ANDERSON: You have projects such as a Ritz-Carlton hotel in Palm Desert, where the financing absolutely collapsed, and in one day we had to clear 60 workers off of the project. In other words, the work stops overnight.

HARO: I think when some of the stimulus money starts flowing through, more buildings are being built, I think that I probably will go back to work.

FINNSTROM: But there are no guarantees if or when those stimulus dollars will create new electrical jobs. And while the Haros are hopeful, they can't afford to wait long.

HARO: We had it all planned, and everything was going just right until -- I just never saw it coming.

FINNSTROM (on camera): Haro feels extremely fortunate that his wife had just got her teaching credentials before he was laid off and is substitute teaching. But the family had planned to start saving for a home and is now struggling to keep their apartment.

Kara Finnstrom for CNN, Los Angeles.

(END VIDEOTAPE)