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Last Chance for General Motors, Chrysler?; Flood Area Facing Snowstorm; What Do Autoworkers Think; Average Gas Price at $2.05; Chrysler, Fiat Reach Deal; Unemployment Office Perks; How to Navigate a Job Fair; White House Briefing
Aired March 30, 2009 - 12:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
TONY HARRIS, CNN ANCHOR: Well, President Obama tells struggling auto companies to rev up their restructuring plans. At stake, billions of your tax dollars and the future of the auto industry.
Within the past hour, the president spelled out his administration's plan to help turn General Motors and Chrysler around. GM's CEO, Rick Wagoner, is resigning. The president says the auto company needs a new vision for the future.
GM has 60 days to restructure. The administration will provide money for the company to operate during that time. The president says Chrysler needs a partner to survive. It has 30 days to finalize a deal with Fiat.
CNN's Kate Bolduan has more details on the administration's plan for the auto industry. She joins us live now from the White House.
And Kate, you were hinting at this last hour. The president clearly offering a solid commitment in words and dollars to Chrysler and GM, but with some real strings attached, and really a date certain for Chrysler to make a deal.
KATE BOLDUAN, CNN CORRESPONDENT: You said it very well. Some very big strings attached.
President Obama says he wants to help the American auto industry. He says, "I'm here fighting for you," talking about the autoworkers. But he also goes on to say we need to see some real concessions.
He did not see that in the plans that were presented from the top, down. From the top brass, all the way down to the autoworkers in the unions, he wants to see -- they have to see this plan, a better plan for viability.
Listen here to a bit of what the president said today.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: And while Chrysler and GM are very different companies, with very different paths forward, both need a fresh start to implement the restructuring plan they developed. That may mean using our bankruptcy code as a mechanism to help them restructure quickly and emerge stronger.
(END VIDEO CLIP)
BOLDUAN: The president very quickly saying, but let me tell you one thing -- we're not talking Chapter 11 bankruptcy. He wants to say that they want to use bankruptcy in a more surgical way, as one administration official has put it, in order to help them along to do what the president wants to see in part of these concessions, Tony -- consolidate, clean up their balance sheets, and get a business model that can survive in the future. He says, come on, let's get in the 21st century.
HARRIS: Get a move on it, yes. Yes. Hit the accelerator, let's get it going.
BOLDUAN: Yes.
HARRIS: But there was more, as I heard it, and I'm curious if you heard it this way too. More than just tough talk here for the automakers.
BOLDUAN: There definitely was tough talk. You could hear it. But throughout, you could clearly notice that the president was trying to quell fears. He was trying to offer some reassurance to consumers. I'm sure the message was straight to every household that was watching on our air...
HARRIS: Absolutely.
BOLDUAN: ... saying, listen, no matter what, we're here. We don't want these companies to fail. We're going to do what we can. We're going to finance them for the next short term.
HARRIS: Right.
BOLDUAN: We're also going to back your warranties. So go out and buy those cars. You can be assured that we are here, we're going to fight for you.
But in the end, there is going to be a deadline when some major decisions are going to have to come. Either you made those concessions or not.
HARRIS: Well, I need my job to be secure, if I'm going to buy that car, Mr. President. And I also need to be able to get a loan if I'm going to -- and we know the president is working on all those areas.
BOLDUAN: Consumer confidence, consumer confidence, consumer confidence.
HARRIS: Is huge.
All right, Kate. Appreciate it.
Kate Bolduan for us at the White House.
BOLDUAN: Of course. HARRIS: Let's take a closer look now at Rick Wagoner.
In June, 2000, he became GM's youngest ever CEO at the age of 47. He had climbed through the ranks after joining the company as an analyst in 1977.
Wagoner agreed to a salary of $1 this year, you may recall. In 2007, his total compensation was valued at about $24 million.
So the future of the auto industry, a lot of jobs and the health of the U.S. economy at stake. So let's drill down on the latest auto industry plan.
Christine Romans of our CNN money team, as promised, is back. And Peter Valdes-Dapena of CNNMoney.com with us from New York.
And Christine, let me start with you. The auto companies' current plans got a failing grade from the administration. Why? And beyond the "why," I'm just sort of curious, what is it that they could be doing that they aren't already in the process of doing now? And maybe it's just a question of just get it done faster, quicker.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Everything faster, quicker.
HARRIS: Yes.
ROMANS: Speed up the process of, you know, closing down some brands, of closing maybe some plants, of speeding up the pace that deals with labor and with the bondholders, and the whole thing. And it sounds like, Tony, frankly, that the White House is determined that Chrysler doesn't have a future unless it ties up with someone, that it can't survive alone.
So it's GM here that's getting a lot of the focus today of how quickly it can move over the next 60 days to prove that it is a new GM, not the old GM, going through a slow and lumbering restructuring.
HARRIS: Yes.
And Peter, good to talk to you. First time with us in these hours. Good to talk to you, Peter.
Why is Wagoner out at GM?
PETER VALDES-DAPENA, CNNMONEY.COM: I think a lot of that has to do with symbolism, as much as anything else. They wanted to make a change, they wanted to show that they're making a serious change.
Obama mentioned in his speech -- President Obama mentioned that he does not want to, you know, make it look like Rick Wagoner is a bad guy. And a lot of people say that he's actually made a lot of significant changes and he understands this company's challenges. But it just wouldn't look good, I don't think, to have the same guy in charge. And you'll notice they're moving Fritz Henderson, who's currently... HARRIS: Yes, who is he?
VALDES-DAPENA: ... CFO of the company. Was CFO before he was president of General Motors. And so they're moving somebody who is a longtime GM executive, somebody who also understands the problems.
I mean, that's part of the big thing here. When we've talked before about change at the top, there's a real question -- do you want to change -- you know, change the captain of the boat in the middle of the stream here? And that's a real challenge.
HARRIS: Well, but let me push you on this, Peter. I mean, this Henderson guy, we don't know him, we're getting to know him. I mean, I don't know how long he's been there.
Is it clear that he is part of the solution?
VALDES-DAPENA: I think he could be. A lot of people say that he has sharper elbows, someone who is a little more politically willing to push people around than perhaps Rick Wagoner.
HARRIS: Yes, but what does that mean practically here? What, to strike a harder -- and Christine, let me bring you in.
What does that mean, to strike a harder bargain with the unions, with the bondholders? What does that mean, sharper elbows and...
ROMANS: Well, he's been around since '84, I think, with this company, if I'm right, Peter. And he's somebody who's turned around other failing units before. So he's seen more as like a kind of a guy who can try to turn things around and maybe make some friends, but also make some enemies along the way.
Am I right?
VALDES-DAPENA: Right. I think, most importantly, he is simply not Rick Wagoner. He is someone who is not Rick Wagoner, but at the same time understands the complex, inner workings of General Motors. If you just brought someone in from outside, they'd have a hard time finding all the levers to pull at this company.
HARRIS: And knowing the culture and everything else. And maybe the culture is not the most important thing right now when you're trying to hang on and survive.
But I'm curious, Christine, do you believe that Wagoner leaving, resigning is a clear indication that this administration is willing to do just about anything to keep GM alive and viable?
ROMANS: I agree with Peter that it is symbolism. They were sending a strong message -- look, we are tough. This is tough love to GM. But, yes, we are going to do everything we can to make sure that this is a viable company.
Look, it's very clear they think that Chrysler doesn't have as many options. Ford, remember -- we keep talking about the future of the big three. Ford has not had to take these low-interest loans, these low-interest payments. They've been out of this fray.
What I'm interested in, Peter, is your perspective. What I'm hearing from some people in Detroit is that they think this might put Ford at a little bit of a disadvantage if indeed the White House is going to put all of its weight behind GM. Where does that leave Ford?
HARRIS: What do you think about that, Peter?
VALDES-DAPENA: That's an interesting point and something that's come up before. If GM is getting all this attention and they're going to get all these concessions, potentially it could leave Ford at a disadvantage.
I think, however, that Ford, just being in a better position to begin with, is still standing to gain here. And many of these concessions, when GM gets concessions, Ford will demand many of these concessions as well, simply saying, look, you know, you don't want to weaken us...
HARRIS: Got you.
VALDES-DAPENA: ... you don't want to put us at a disadvantage. And we're going to need some of the same treatment too.
HARRIS: And a final note here, and maybe the most important thing, at least as I sit here, is all of the people -- Christine, we talked about this last hour -- the number of people who, for decades, have been able to move into the middle class because of that auto industry and the people who were able to just improve their lives. And the president's comments this morning, does it give them more confidence that their jobs may in fact be around?
ROMANS: Gosh, I don't know, Tony. You know? I mean, that's the tough part of this.
I think he talked about sacrifices, and I think sacrifices means not all of you are going to have your job. Not all of the industries, the people that work around the auto industry. I mean -- and I don't know, Peter, if this is a controversial statement. We are looking at a fundamentally smaller American auto industry...
HARRIS: Yes.
ROMANS: ... and in five years than we saw five years ago. Am I right?
VALDES-DAPENA: Yes. We are looking at a smaller industry.
Clearly, part of the reason that GM is more likely to survive, I think, in the view of the administration officials, is because of its size. It's a bigger company and has more resources to draw on. At the same time, it has to streamline and cut jobs and cut units and things like that. So, yes, in that sense, we are looking at a smaller industry in the future.
HARRIS: Thank you both. Peter, we're going to have you back, if that's OK with you.
ROMANS: But not me?
HARRIS: Yes, of course. Come on. You're a staple here. If you're not going to be here, I'm not going to be here.
Thank you both. We appreciate it.
ROMANS: Bye.
HARRIS: Their jobs are on the line, literally. We will find out what autoworkers are saying about the administration's plans for the industry. A live report from Susan Candiotti. She's in Warren, Michigan. We'll get to Susan at the half-hour.
A quick check of the markets right now. And it has been a rough ride all day long for stocks, as you can see.
The Dow down 269 points. We'll check in with Susan Lisovicz, who is following all the numbers, of course, what investors are thinking of the plan from the administration, a little later this hour, right here in the NEWSROOM.
First the flooding -- boy -- and now the snow. Another blow for the already-soggy Midwest.
(COMMERCIAL BREAK)
HARRIS: North Dakota bracing for a snowstorm -- can you believe it? -- after a weekend of record flooding. CNN iReporter John Kenney sent us these pictures of a friend's home. It is in the city of Briarwood. That is just south of Fargo. John tells us 3.5 feet of water flooded this house.
Sandbagging saved many homes in the area. CNN iReporter Greg Cook was one of thousands of volunteers sandbaggers who braved freezing temperatures to help hold back the Red River. Greg sent us these pictures from Fargo. He describes the community effort as absolutely amazing.
And we have a video account from another CNN iReporter. Take a look at this from just across the river in Moorhead, Minnesota. Take a look.
(BEGIN VIDEO CLIP)
EMILY KJONAAS, IREPORTER: This is the Red River, up by Moorhead Center Mall on First Avenue -- or Center Avenue, one of the two. There are some ducks completely unfazed by it, some newsperson. And over there is the mall. Water is all the way up, just exactly like 1997.
And over there is Fargo. I'm on the Moorhead side right now. And the water is all the way up to here.
There's some apartments. That is the Veterans Memorial Bridge, the new one we have here in Fargo and Moorhead.
(END VIDEO CLIP)
HARRIS: Emily, thank you for your iReport. Nice job. Tough story to tell.
Staying on the front lines throughout the flood disaster, CNN's Susan Roesgen. And she joins us now from the soaked city of Moorhead.
And Susan, if you would, talk to us about the new storm that we're hearing about now. And for folks who weren't with us last hour, make the point again about the real danger this new storm poses.
SUSAN ROESGEN, CNN CORRESPONDENT: Well, the new storm, Tony, as you might be able to tell here, is the winter storm that's coming. It's still very cold here.
The water that I'm in here in Moorhead, Minnesota, is freezing. Not what I'm used to in a flood. And usually you're in warmer floodwaters.
But what we are expecting here tonight, Tony, is this winter storm with anywhere from six to 14 inches of snow. And with it, very high winds. And the fear is that the winds will just push the water from the Red River, where it's already flooded, and make waves in the water, and that that could weaken the dikes around the city.
So I've seen more people actually out, Tony, today with pictures, cameras, taking pictures of things like this road closed, taking a look at things, because this is an historic event for Fargo and for Moorhead. I've seen more people with cameras than with shovels out today, because really, if your dikes are set, there's not much you can do, Tony, except wait, see what the storm does.
HARRIS: Yes, absolutely. You know, I'm wondering if folks are talking about this and comparing this storm, and comparing it to the storm -- what was it, in '97.
Are you hearing a lot of conversation about that that?
ROESGEN: Yes. What I'm hearing is that it's a very touchy subject here, Tony, because Grand Forks, was just about wiped out. You know, Fargo and Moorhead are here, Grand Forks is here, then you've got the Canadian border.
In '97, Grand Forks was just about wiped out. And after that, the feds cape up with $400 million so that people could get really serious there about flood protection, about flood protection year- round.
Fargo and Moorhead have been complaining as communities that they didn't get any of that federal money for flood protection, and now look at this. But of course nobody can predict the future, and after Grand Forks got it so badly, of course they got some flood protection so that it wouldn't happen again. And look -- now it's happening south of Grand Forks, in Fargo and Moorhead, where people didn't think they would get this kind of flooding. So they're already talking to their congressmen and senators, Tony, talking about, what can we do when the water goes down to keep it from ever getting this high again?
HARRIS: You just can't predict where these storms are actually going to go.
Susan Roesgen for us in Moorhead, Minnesota.
Susan, as always, good to see you.
(WEATHER REPORT)
HARRIS: Thousands of protesters ready to take on President Obama and other world leaders in London tomorrow. So what's their beef?
(COMMERCIAL BREAK)
HARRIS: The Obama administration playing hardball with General Motors and Chrysler. President Obama announcing last hour that the two automakers will have a limited time to restructure. The administration also forcing out GM's CEO, Rick Wagoner.
Earlier this morning, Heidi spoke with former "Car and Driver" magazine editor Csaba Csere about the effects of the White House action.
(BEGIN VIDEO CLIP)
HEIDI COLLINS, CNN ANCHOR: GM has the 60 days and Chrysler has the 30 days. Is that enough time to make a significant difference for these companies?
CSABA CSERE, AUTO INDUSTRY ANALYST: Well, the administration is playing hardball here. What they're basically signaling is that the various stakeholders haven't given enough. The bondholders haven't been flexible enough to take a financial haircut. The union hasn't given enough. And the car companies have given enough.
So they're really holding their feet to the fire. They're giving them one last chance. And they're also, by lopping off Rick Wagoner's head, just showing how serious they are. And again, by hitting management that hard, they're going back to the union and the bondholders and saying, look, you know, we're not kidding around. We just killed the chairman of GM, you guys are next if you don't come across.
COLLINS: Well, in fact, listen to this with me. This was the president on CBS's "Face the Nation" over the weekend. Listen.
OBAMA: Everybody's going to have to come to the table and say, it's important for us to take serious restructuring steps now in order to preserve a brighter future down the road.
COLLINS: I wonder, Csaba, what exactly has GM done for the last four months?
CSERE: Well, they've done quite a bit. Keep in mind that GM has been restructuring for some time.
They've shed roughly half their workers in North America in the last five years. So they've done a tremendous amount. But these are also enormously complicated companies.
You know, they're planning products, not six months out and a year out, but six years out. And you don't turn that stuff around very quickly.
Also, you know, I think they had a moving target. The automotive task force wasn't even fully staffed until the end of January, so they didn't necessarily know what was expected of them. It's very difficult to restructure these companies.
COLLINS: It sounds like you think they deserve another chance.
CSERE: Well, I think they absolutely deserve another chance. In fact, you know, GM was in a pretty good turnaround mode before this huge recession hit. If they'd had another few years of good economy, the company wouldn't be in this circumstance today. But the problem is they ran out of time, and you cannot fix this stuff very quickly. GM today is suffering for the sins of the past 30 years.
(END VIDEO CLIP)
HARRIS: And just a note here. The president pointed out in his remarks this morning that both GM and Chrysler might need to file for bankruptcy as they restructure their operations.
So who is Fritz Henderson, the man now at the helm of General Motors?
Henderson was already considered the heir apparent to succeed Rick Wagoner. Henderson has been serving as the company's president and chief operating officer. In announcing his resignation, Wagoner praised Henderson as the ideal person for the job. Fritz Henderson began his career at GM in 1984.
And we just received just moments ago a statement from the new CEO of GM, Fritz Henderson. I'll read just one quick paragraph for you.
"The United States Treasury has said that it strongly believes that a substantial restructuring will lead to a viable GM. Over the next 60 days, we will work around the clock with all parties to meet the aggressive requirements that have been set by the task force, and to make the fundamental and lasting changes necessary to reinvent GM for the long term."
A statement just moments ago into CNN from Fritz Henderson, the new CEO of General Motors.
We get reaction from some of the GM workers on a production line in Warren, Michigan. That is next.
(COMMERCIAL BREAK) HARRIS: President Obama says struggling auto companies need to turn things around. And fast. Today, the president spelled out his administration's plan for the industry.
General Motors' CEO, Rick Wagoner, is resigning. Let's start there.
The president says the company needs a new vision for the future. GM has 60 days to restructure with the administration providing money to operate during that time. The administration says Chrysler needs a partner to survive and has 30 days to finalize a deal with Fiat.
And since we just got this statement just a short time ago, let me just read another paragraph from Fritz Henderson, who is the new CEO of General Motors, who says, "The administration has made it clear that it expects GM to expand and accelerate its restructuring efforts."
Again, this idea moving quickly. "I want the American people to know that we understand and accept this guidance. The road is tough, but the ultimate goal, a leaner, stronger, viable GM, is one we share." Another bit, a small bit of a statement from Fritz Henderson, who is the new CEO of General Motors.
President Obama had a message for auto workers during his announcement last hour. He says he knows they've been going through difficult times for a while.
(BEGIN VIDEO CLIP)
OBAMA: 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.
(END VIDEO CLIP)
HARRIS: National correspondent Susan Candiotti has been talking with auto workers, getting their reaction to the administration's plans for GM and Chrysler and she joins us now live from Warren, Michigan.
Susan, what are you hearing?
SUSAN CANDIOTTI, CNN CORRESPONDENT: Well, Tony, of course, the workers are still holed up in the factory, so we're waiting for a shift change. But we can say this. Just before President Obama announced his plans about what GM will have to do within the next 60 days, employees did tell us this. Their message to the president is, help us, please. But the question is, will workers be willing to make enough concessions? One union activist said, enough is enough. No more job cuts.
(BEGIN VIDEO CLIP)
PETER MORICI, UNIVERSITY OF MARYLAND: A bankruptcy judge can evaluate the situation, impose a new labor contract, force the unions to take a hair cut on health care benefits, force the bondholders to convert to equity and zero out the shareholders and even make changes in the management.
MICHAEL FERGUSON, UAW LOCAL 160: We need customers. We need people with money in their pockets to buy products. We don't need any broke (ph) auto workers that can't buy their own products.
(END VIDEO CLIP)
CANDIOTTI: So, of course, that you heard secondly from one of the employees. And before that, that was an economist suggesting that the company might have to enter a short bankruptcy.
In the end, these workers do know that they're going to have to make some tough decisions, and eventually vote on whatever plan it is that GM comes up with. The president's message, of course, is they'll have to suffer some painful decisions here in the next 60 days or so. But in the end, the president has said that pain comes with a benefit. It's called survival -- Tony.
HARRIS: Yes. All right. Susan, appreciate it. Thank you.
We're getting a bit of breaking news here. You know, we've been telling you all morning that the president has put some sort of massive strings -- attached them to both GM and also to Chrysler to get additional funding from you and from me. One of the conditions on Chrysler is that essentially Chrysler had 30 days -- talk about being under the gun -- Chrysler essentially had 30 days to strike a deal with Fiat. And once that deal was struck, the administration would make, I believe, another $6 billion -- would at least consider making another $6 billion of assistance available to that combined company.
We've just received word here, breaking news right here in the CNN NEWSROOM, talk about making things happen quickly. Chrysler LLC has reached a deal with Fiat. The two companies have 30 days. They've done it apparently in one. Just minutes ago. The announcement coming down that Chrysler LLC has reached a deal with Fiat. We'll get more from our money team on this announcement. Pretty striking, huh? Just in minutes ago here in the CNN NEWSROOM. We'll talk to maybe Christine Romans in just a couple of minutes about the significance of this announcement from Chrysler and Fiat.
Let's take a look at the numbers. What investors are thinking about all that is going on with the auto industry and word from Treasury Secretary Geithner that the banks may still need further assistance. It's been a rough day for investors and for the Dow. The Dow down 262 points. Just past three hours into the trading day. We will continue to follow these numbers, at least slightly off of the session lows, but not by much. Susan Lisovicz is following the markets for us throughout the day right here in the CNN NEWSROOM.
Gas prices are up for 13 straight days now. Averaging nearly $2.05 a gallon. And U.S. automakers are struggling to stay in business. Now proposed legislation could help you and Detroit at the same time. How is this going to work? Cnnmoney.com's Poppy Harlow has our "Energy Fix" out of New York. Good to see you, Poppy.
POPPY HARLOW, CNNMONEY.COM: Hi, Tony.
Well, when you look at GM and Chrysler needing some help more than ever, really, a bill that is nicknamed "crash for clunkers" could help consumers and could help GM/Chrysler and the entire beleaguered U.S. auto industry.
Here are the details. The House bill would give $3,000 to $5,000 in vouchers to people who want to trade in their old car to buy a new, more fuel efficient one. The idea here, the more fuel efficient the new vehicle, the bigger the voucher. The clunker you trade in, though it has to be at least eight years old to qualify, Tony, the new car can't cost more than $35,000. But again, just another incentive if this is passed for people to buy those U.S. cars -- Tony.
HARRIS: All right. What's the reaction so far, if we know, from Detroit?
HARLOW: Right. From Detroit. Well, as far as we know from today's headlines, the big three need all the help they can get. Last week General Motors told us this legislation could really jump-start its sales. We heard Ford and Chrysler are also on board.
But keep in mind, there's a bigger voucher for any car built in this country. Bigger than those that are made in Mexico or Canada, even if they're GM, Chrysler or Ford vehicles that are made in Mexico or in Canada.
And foreign automakers, keep in mind, take issue with this bill because cars that are made outside of North America, Tony, they don't qualify at all. So it's kind of ironic. You wouldn't be able to use this voucher on a Toyota it on a Prius, because it's made in Japan, but you would be able to use it on some other Toyota vehicles made in this country.
HARRIS: Well, I want to know -- bottom line this for me, Poppy, how much will this bill cost?
HARLOW: Yes, it's not going to be cheap. No official price tag yet, Tony. Some estimates around $1 billion or $2 billion a year. That's tough to swallow when our budget deficit is at an all-time high. But this is not the first time. This is interesting to find out that this sort of "cash for clunkers" proposal has been seen lately from Washington. There was actually one in the original stimulus bill but it got pulled along with other things. However, the situation for GM and Chrysler can't get much more dire than it is now. So we'll see what happens with this. But it could be a hefty price tag -- Tony.
HARRIS: Yes. And we'll see what happens with the announcement just moments ago of we have a merger, huh?
HARLOW: Right, Chrysler and Fiat. We'll see.
HARRIS: Yes, we'll see.
HARLOW: We'll see many details, yes.
HARRIS: OK. Poppy, appreciate it. Thank you.
And how about this. A deadly sign this morning of the overwhelming security problems in Pakistan. Militants, some dressed in police uniforms, stormed a police training center in LaHore. They killed eight and wounded 52 others in an eight-hour long standoff. Four of the militants were killed and three others arrested. Our correspondent in Pakistan tell us some of the militants blew themselves up to avoid capture.
And tens of thousands of protesters, including anti-war activists, environmentalists and union workers crowding the streets of London. They're waiting for the leaders of the world's economic powers to arrive for the G-20 Summit later this week. President Obama heads there tomorrow. He hopes to get some of the countries to pass their own stimulus packages to help create jobs and turn around the economy. That's still a tough sell, especially for Germany, which refuses to take on any more debt.
We're back in a moment with the news just breaking here in the CNN NEWSROOM of a deal between Chrysler and Fiat. More in a moment.
(COMMERCIAL BREAK)
HARRIS: Authorities in North Carolina investigating events surrounding a shooting spree that left eight dead at a nursing home. Police say an armed man shot and killed seven patients and a nurse in Carthage Sunday before he was wounded in a shootout.
(BEGIN VIDEO CLIP)
HARRIS BLAKE, NORTH CAROLINA STATE SENATOR: And he just went around shooting people. People in wheelchairs. And this, I think, this could not be any more barbaric.
TAMMY CLARK, MOTHER IN NURSING HOME: To my understanding, he went into some of the rooms and shot some of the people right there in their bed.
(END VIDEO CLIP)
HARRIS: Police say the gunman's estranged wife worked at the Pine Lake Health and Rehab Center. Three people were injured, including the police officer hailed as a hero for shooting the gunman before more people could be killed.
Across the country, in California, six people are dead in what police call a family on family murder/suicide. It happened last night in an upscale neighborhood of Santa Clara. Police initially found five bodies in a townhome, two of them children. One of two people found wounded has since died. This is the sixth mass death of a family by murder or suicide in southern California in the past 13 months. Let's get the latest now on this deal for a merger between Chrysler and Fiat. Peter Valdes-Dapena of cnnmoney.com is with us in New York.
And, Peter, what do you think of this? I mean, look, the two sides have 30 days to work this out and they got it done seemingly within hours of the president making the announcement.
VALDES-DAPENA: Well, if what we're looking at -- if this is correct and this is the deal that under the terms that Treasury could abide by, well then I would think that they understood what was going to be needed to do this and they were able -- they've been working for some time on this. So if we've got a deal here, and it's correct that we -- and if it's correct we have a deal that Treasury has signed off on, then great. They have an opportunity to . . .
HARRIS: You don't sound convinced of the new -- of the deal.
VALDES-DAPENA: I've seen -- I've seen -- I'm just like, I...
HARRIS: You've been around long enough to know, right, a deal is not a deal...
VALDES-DAPENA: I'm being extra cautious here. I want to hear it from all sides involved in this. I'm just being extra cautious here. You know, clearly they knew going into this, I'm sure that, you know, last night and this morning is not the first that Chrysler and Fiat have heard of what is going to be asked of them.
HARRIS: Of the 30 days, right? Yes. Yes.
VALDES-DAPENA: And they've had time to think about it. And clearly, you know, when it become evident, look, this company -- we're not going to support this company without an agreement. We're not going to support this company unless you work out this kind of deal. And here are the kind of terms we need. Then, you know, it's pretty much you either -- it's a yes or no and you pretty much move forward with it.
HARRIS: Why is the company -- Peter, why is the company, Fiat and Chrysler, what -- if this turns out to be, in fact, what is going to take place here, why is this a company, together, that can survive and thrive?
VALDES-DAPENA: Because what Chrysler needs, basically -- the feeling is that Chrysler has -- Fiat, rather, has what Chrysler needs, particularly technology for fuel efficient small cars that they sell in Europe and they can bring that technology here. Bring those engines and powertrans (ph) to this country and help Chrysler out in an area that Chrysler badly needs.
HARRIS: Peter, are you talking that -- this is technology that Fiat has that Chrysler hasn't been -- this is just amazing to me that this is technology that Fiat has that Chrysler needs. I mean, hasn't Chrysler been working on this technology? VALDES-DAPENA: No, they haven't been working on it nearly long enough. I mean for a long time Chrysler, you'll remember, was a division -- was in a merger with Daimler.
HARRIS: Yes.
VALDES-DAPENA: By the way, I want to -- you know, where they were restricted to working on certain kinds of products as part of a larger company.
HARRIS: I see.
VALDES-DAPENA: That left Chrysler without the ability, as these folks at the Obama administration have stated, without the ability to exist as a stand-alone company because so much of the capacity was taken away from them. They were working on big SUVs and trucks. They were not working on small, fuel efficient engines that are better and smoother and nicer to drive. That's what Fiat has and that's what Fiat can offer. And in terms of what Fiat gets from this, Fiat can get an entre into the U.S. auto market, which Fiat very badly wants and needs.
HARRIS: All right, Peter, appreciate it.
Peter's with our cnnmoney.com team.
Peter, thanks for your help on this.
Out of a job? Heading to a job fair? There may be thousands there just like you. So how do you stand out?
(COMMERCIAL BREAK)
HARRIS: The unemployment office is a popular spot lately. It is the place to go to apply for benefits. But in states like Georgia, it is actually a full-blown career center, too. And it could be your key to landing your next job.
Here's CNN's Fredricka Whitfield.
(BEGIN VIDEOTAPE)
FREDRICKA WHITFIELD, CNN CORRESPONDENT (voice-over): The doors don't open until 7:30 a.m., but lines start forming at this suburban Atlanta career center sometimes an hour before, even in the rain.
UNIDENTIFIED MALE: Good morning to you, sir.
UNIDENTIFIED MALE: Good morning to you.
WHITFIELD: Nationwide, it's at centers like this where that road back to employment often starts.
UNIDENTIFIED FEMALE: I'm here to file unemployment.
UNIDENTIFIED FEMALE: OK. WHITFIELD: First, there's the request for benefits. Not always a guarantee.
UNIDENTIFIED FEMALE: Will my claim start as of today?
UNIDENTIFIED FEMALE: Yes.
UNIDENTIFIED FEMALE: OK. If I choose to walk out the door now and wait till the severance pay comes back, that's when my claims start.
UNIDENTIFIED FEMALE: After the severance ends.
WHITFIELD: And in Georgia, where the unemployment rate was 9.3 percent for February, in some cases, no benefits allowed unless you attend seminars and workshops geared toward finding work. Even if that means a new career.
That's OK with Don Sanders (ph). He's already learning something new. Sanders was laid off after 17 years with the same company. He's now studying to become a Gwinette (ph) County police officer.
DON SANDERS, UNEMPLOYED: It didn't bother me much because I think I had been -- 17 years for me was long enough. It's motivation for me to do what I wanted to do.
WHITFIELD: First day in the center for a very nervous Dominic Granada (ph), laid off two weeks earlier after 16 years with a telecommunications firm. That nervousness, he says, is for his two daughters.
DOMINIC GRANADA, UNEMPLOYED: The toughest part is not for you. You know, I could live on peanut butter sandwiches. The toughest part is for the kids. It's just -- they haven't seen tough times. So it's a bit of an adjustment for them. But they're resilient.
WHITFIELD: People like Granada are getting help through centers like these nationwide, offering things like resume critiques, interviewing tips, free access to computers and copying machines.
This was also the first day at the career center for Rhoan Tucker (ph), laid off in January.
RHOAN TUCKER, LAID OFF: I'm 40 years old. I do have a college degree. But to go back and relearn something is something that I don't know if it's --- right now I'll do what I have to, but I would prefer not to.
WHITFIELD: And he might not have to. Georgia has been recognized by the U.S. Department of Labor as one of the more efficient in the nation.
(END VIDEOTAPE)
HARRIS: That was our Fredricka Whitfield. Look, if you're looking for a job right now, we don't have to tell you it's pretty brutal out there. In addition to social networking, online sites and good old fashioned pounding the pavement, a career or job fair is a pretty good way to meet a lot of potential employers in a short amount of time. Career savvy expert Tory Johnson -- there she is -- is joining me now and she's the founder and CEO of Women for Hire.
Tory, good to see you.
All right, look, let's get to this. Let's drill down on this.
TORY JOHNSON, FOUNDER & CEO, WOMEN FOR HIRE: Yes.
HARRIS: You know, I was going to say, it's a great way to find a job. But I'm not convinced as I sit here. You're going to convince me that these career and job fairs are a great way to find a job. Look, I -- we we're showing the pictures of thousands of people in line. Never mind the people in the room, but in line.
JOHNSON: That's right.
HARRIS: How do I stand out? And I need to because I need a job.
JOHNSON: That's right. And it's important to recognize that. So it's not just good enough to show up because we see thousands of people are doing that, but thousands aren't going to get jobs from those events. So the very first step is, research in advance. To your homework before you even get there.
HARRIS: What does that mean? What am I researching?
JOHNSON: Well, that means you're researching the participating employers. I know for the events that I put on throughout the country, we list all the employers online in advance. And so on my website, womenforhire.com, you can get a list of those employers so that you can research them. So when you walk up to somebody and say, you know, not what do you have for me, I'll take anything, but I've done my research on your company, I know what you're looking for, here's why I'd be an ideal match.
HARRIS: Well, do you find that people are too often going to these career job fairs not knowing who's going to be there?
JOHNSON: Many times. Many times. People will walk up . . .
HARRIS: Well, that's not a plan. That's not even smart to do that. I mean, come on.
JOHNSON: It's not. But you know what? Nobody prepares people for being unemployed.
HARRIS: Right. Good point. Good point.
JOHNSON: Nobody ever educates you on what do you do at a job fair? So a lot of people simply show up and they think that they'll deal with it right there.
HARRIS: OK. Well, talk about this introduction because this has to be key. You talk about, you need to know, you need to do your research and then you need to prepare, you tell us.
JOHNSON: Solid introduction. When I walk up to you, you know, am I going to walk up to you with . . .
HARRIS: Hi, I'm Tony Harris.
JOHNSON: Hi. It was like weak handshake. Barely looking at you. No, I'm going to have a firm handshake, fabulous eye contact.
HARRIS: Yes, give me one. Give me one.
JOHNSON: Yes, I'm going to like, you know, and I'm going to look you in the eye and I'm going to say, I'm Tory Johnson, here's what my background is, here's why I'd be an ideal asset to work for your organization. And that's how we're going to strike up a conversation.
HARRIS: Yes.
JOHNSON: And talking about conversation. It's important to talk to everybody when you go to these events. So not just . . .
HARRIS: And that's tip three.
JOHNSON: That's essential.
HARRIS: Yes, talk to all of the atendees.
JOHNSON: Not just to the employers. So maybe you're coming because there's one or five or 10 of the companies that you're interested in, but the person who's standing next to you, behind you, in front of you could be your best connection. When you've got so many people in a room like that, share leads, share information, share ideas.
HARRIS: You also tell us to take advantage of any and all seminars.
JOHNSON: That's right. I know at our events and at most of the career fairs these days, there are things like free resume criticing, seminars that can help you to really feel empowered in your job.
HARRIS: Nice.
JOHNSON: Very important. And the last and probably most important of all, follow up. So you don't go to a job fair, pass out resumes and then go home and wait for your phone to ring. You need to make the phone ring by following up on all those leads of the people that you met. So when you talk to an employer, write down the name of the person that you spoke to. You want to be able to then call them the next day, e-mail them the next day and say here's who I was among that sea of all those people, here's why you need me.
HARRIS: Boy, I tell you what, we're just going to . . .
JOHNSON: You want to lose your job so you can come to a job fair?
HARRIS: No, no, no.
JOHNSON: You're not that excited about it.
HARRIS: No, no, no, no. I've got babies. I've got to put food on the table.
JOHNSON: Yes, so do many of the people who I will see tomorrow in Atlanta, Thursday in Chicago, and I want all those people to be super prepared. And if they're not, we offer as much advice as we can to help them to navigate it successfully.
HARRIS: (INAUDIBLE).
JOHNSON: You need two hands -- we need like two hands for this, right?
HARRIS: Tory, that was awesome.
Has the White House briefing started? All right. Let's take you to the White House briefing.
ROBERT GIBBS, WHITE HOUSE PRESS SECRETARY: I do notice that class has started a little early today and not everybody is in their seats.
QUESTION: We trust the two-minute warning.
(LAUGHTER)
GIBBS: Do you? Ah. Huh. A little fiendish of me to actually abide by it today, wasn't it?
Well, I have no particular announcements, and so take us away.
QUESTION: Robert, the president said in his remarks that he had no intention or no desire to run these auto companies. But the way this is moving along, hasn't the government and the administration effectively set itself up as a proto board of directors by all of the decisions it's going to make about how these companies do, in fact, proceed or at least the veto power it has over these plans?
GIBBS: Well, I think what -- the determination that the president's auto task force and that the president have made denotes the seriousness by which companies are asking for extraordinary assistance.
And the president and the task force, understanding the request for that assistance, are going to take measures and steps to protect -- to protect the taxpayers, as well as seeking the best solution to put these companies back on firmer footing and on a path towards long- term viability. I don't -- I don't think in any way is the federal government running -- running these companies or this industry. I think that's not fair. I think you've seen -- if you want to talk specifically about management changes, this is not the first entity that's receiving -- that's received extensive assistance that has seen a change in management or a composition structure of their board of directors.
QUESTION: (OFF-MIKE)
GIBBS: Well, I'd -- without getting real specific about what's happened in the past -- some of which we weren't here for -- I'm not entirely sure that some of the board and the CEOs of companies that we've talked about extensively in the past few weeks all together might have gone willingly.
QUESTION: Could you -- just to follow up, could you clarify on the warranty issue? Because the language is a little bit unclear in the document you put out. Does it apply -- the government backing of these warranties -- apply only to automobiles and vehicles made by Chrysler and GM? Or is there a buy-in of some sort, other automakers, including foreign automakers, with plants here?
GIBBS: Let me double check -- let me double check the specifics of that. I will -- we'll get that (inaudible) everybody to ensure that there's no confusion there.
Yes, sir?
QUESTION: Thanks. And a follow-up on cars. A couple questions on cars. Who does -- and related to management, as well. Does Wagoner's resignation -- is that a one-time thing? Or does that suggest that a change in approach from the White House for companies that are getting bailout money?
GIBBS: Well, again, I think if you go back and look at -- let me just say two things. One, I think as we -- as we look at all these individual circumstances, I would look at them exactly that way, as -- as individual.
Secondly, as I said a moment ago, I think if you look back at -- and, again, some of which this administration wasn't here for -- there are -- there have been management and board of directors changes in the past.
QUESTION: But you're tying this to the -- to the plan. You're tying this to aid.
GIBBS: Well -- but, again, I think -- and this was, I think, pretty clear yesterday -- this was, as -- as we've said, this was something that the task force asked for. It's something that was agreed to. So I think this notion somehow of been set up as a quid pro quo isn't correct.
QUESTION: Follow-up, specifically on GM, why Fritz Henderson? Why did he end up being the new CEO, when he actually designed a plan that's been rejected by the task force?
GIBBS: Well, look, obviously, I think there is -- and I don't want to presuppose anything going forward, because, again, to build on the original question, we're asking for a plan over the course of the next 60 days that we think meets the test of viability.
We want to see -- the president strongly wants to see these companies do well and the communities that these companies are rooted in recover and do well. We've had generations of -- generations of people working in some of these plants.
So, in the interim, as the president said in his remarks, that this was a -- a good way to start anew in that -- in this 60-day period and -- and, again, without getting too far forward as to what might happen beyond 60 days.
QUESTION: But I just want to understand how it's starting anew if you're choosing the CEO who rejected -- who submitted the plan that's being rejected.
GIBBS: Well, again, I think you've got some management changes. You've got some board of director changes. And I think you have -- we believe, at least, the beginnings of a new beginning.
QUESTION: (OFF-MIKE)
GIBBS: Yes.
QUESTION: Can you explain to Americans who -- who heard the president today why there seems to be this disconnect, a lot of tough talk and tough demands from the administration when it comes to the auto industry, but that doesn't seem to be carried on when dealing with Wall Street or the banking industry?
GIBBS: Yes, well, I think -- initially I think the first thing I would say to anybody, including the American people, is understand that we have -- have taken and are prepared to take extraordinary steps to help the auto industry get back up on its feet, to put it on firmer ground, and to see it return to a stronger position to support the companies, the workers, and the communities they're in.
I think if you look at -- and I think this question was asked over the course of the last sort of 12 hours -- you know, the original -- original agreements contemplated a March 31st deadline whereby you would either do -- you would either give additional assistance or call the loans.
So I think what the president and his task force are doing are taking a step forward to help these companies, at the same time expecting a term, a plan for viability in the future.
I would also say that the decisions that are made on -- on any entity receiving assistance is done in a way that we think will help stabilize the economy, create jobs.
In some cases, it's to protect jobs and create -- and to -- to have a manufacturing base, like with GM and Chrysler. In others, it's to -- to get lending moving again.
But I think that this administration is -- is rightly matching and balancing the notion for responsibility, at the same time understanding that we want to be a partner in ensuring a strong and viable auto industry as we move forward.
QUESTION: Just a brief follow-up. On Friday, you had a bunch of bank CEOs meeting with the president in the -- in the State Dining Room, and then they came out, and they talked, and obviously it was a -- it was an amicable, but honest and frank meeting. At the same time, Rick Wagoner was being told at the Treasury Department, "You need to step down."
Even if you don't support the premise of my question, there at least is an appearance, optics of the administration being nice to one industry and tough with another one.
GIBBS: Yes, and let me...
QUESTION: That's what it looks like. Whether or not you agree with it, that's what it looks like.
GIBBS: Right, well, let me -- let me -- I guess, let me answer -- let me answer -- ask -- answer your question with a bit of a question. Who represented at the meeting on Friday Merrill Lynch and Wachovia?
QUESTION: I guess they weren't there. Is that right?
GIBBS: Because those entities no longer exist. I think we've taken some tough measures, and this includes expanding -- on different administrations. I'm not -- we think that the decision that the task force and the president made today present the very best opportunity to move these companies forward, to create and protect these jobs, to ensure that America has a strong and viable auto industry in the future, and that's exactly what the president wants to see.
I think you heard him talk today about insuring -- insuring warranties, ensuring through additional staffing that people will be in auto communities and talking to workers about ensuring that they have the benefits that they need and that the communities that support these auto industries get what they need going forward.
We've talked about in the past week or so help for auto suppliers who have also been part of the downturn that has seen jobs go away. So I think all of the steps that the administration has taken are to put us on a path back toward viability.
KYRA PHILLIPS, HOST: CNN.com/live if you want to continue to watch Robert Gibbs there at the White House.
