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Search for Air France Flight; GM on Road to Recovery?; Abortion Provider Killed

Aired June 01, 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: And good Monday to you, everyone. It is Monday, June 1st.

Buckle in for a very busy couple of hours. Here are the facings of the stories driving the headlines in the CNN NEWSROOM.

General Motors chief Fritz Henderson steering his company in the nation's largest industrial bankruptcy ever. Will the move put GM on the road to recovery?

Plus, controversial abortion provider Dr. George Tiller shot dead in his church. The alleged gunman behind bars. The shooting intensifying the abortion debate.

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

First, breaking news, the search for a passenger jet that was due to land in Paris about six hours ago. The Air France flight was carrying 228 people from Brazil. Contact with air traffic control was lost after the plane ran into lightning and thunderstorms over the Atlantic Ocean.

Let's get right to CNN's Richard Quest. He is following developments from London.

And Richard, I sent you a note a short time ago, because I just -- I want to ask the question that I can understand why we're avoiding asking it this way, but I believe it's a question that has to be asked at this point. If this plane had landed safely anywhere, we'd know it by now, wouldn't we?

RICHARD QUEST, CNN CORRESPONDENT: There is absolutely no question. If this plane, bearing in mind the data, Tony, of what we know of where the plane was, where it was last recorded on radar off the coast of Brazil, the direction it was heading, the last known contact with the plane, there is -- it is just about inconceivable that it landed anywhere other than the water at the moment. So, the answer to your question -- and at the time we know about it, it was at 35,000 feet, traveling at over nearly 400 to 500 knots. So, the answer to your question is this has been a catastrophe and the plane has basically left the sky.

HARRIS: All right. So let's take a big step back, Richard, and let's share with everyone everything that you've been learning over the last couple of hours about this flight. QUEST: The plane took off from Brazil, from Rio, and headed up north. It then went oceanic over the Eastern Seaboard of Brazil, and that was the last known contact of the plane as it went over one of the islands.

About half an hour after that, about, I don't know, 2:30 in the morning, 2:00 in the morning, apparently the plane reported hitting turbulence, severe and serious turbulence. Thereafter, Air France says it received an automatic message of systems -- of electrical problems and pressurization problems.

After that, the plane failed to make any further reporting in. The next thing we know is, several hours later, the air and sea search began.

Tony, it is basically this -- the plane takes off, it flies up, it starts to head out into the ocean. It goes over several of the islands. And that's the last we know of it.

HARRIS: Hey, Richard, why -- you mentioned several hours. I don't know how many hours constitutes several in this case, but why several hours between the last contact and the onset of the search?

QUEST: You know, I looked at that, and I'm still looking at it. It's exactly three hours, according to the Brazilian Air Force.

I posed that question to experts. One expert, if I can just reply, has replied saying that, "It seems a fairly fair response time. The Air Force would have to call in a crew and maintenance, brief a mission. Three hours is a pretty good response time," according to one person who's responded to me on this question.

I just don't know.

HARRIS: Yes.

QUEST: It seems a long time. All I can say is that I would have thought if it was over the north Atlantic or the western part, that would be quicker.

But, Tony, let's just remember that this plane was flying at altitude. It had over 200 people on board. It had a catastrophic failure. And this is the sort of thing that happens when -- you know, we remember at this point flying is dangerous.

HARRIS: That's right.

QUEST: But not that dangerous.

HARRIS: Well, Richard, thank you for taking on what I think is at least one of the critical questions at this point.

Richard Quest for us in London.

Richard, thank you, as always. The end -- boy, this is something, the end of an era for a giant of the U.S. auto industry. General Motors files for bankruptcy protection.

Our correspondents are covering every angle of this developing story -- the nuts and bolts of the bankruptcy, the ripple effect on the economy, and what it means for you taxpayers, you and me.

We have reports from our money team, the White House, and a GM dealership and plant. Boy, let's get started here.

The government and you, the taxpayers, have a huge stake in GM's future. The hope is that a leaner, more competitive company will emerge from this bankruptcy.

To talk about the road ahead for GM, let's bring in our chief business correspondent. There he is. Ali Velshi is in Toronto for us. And Stephanie Elam is with our money team, and she's joining us from New York.

And Ali, let's start with you.

What's your take on this bankruptcy filing? Glass half empty or half full for GM at this point?

ALI VELSHI, CNN CHIEF BUSINESS CORRESPONDENT: That's a tough one to call. It was an entirely necessary move. GM tried everything possible to avoid it.

You know, this was a company that was emerging, perhaps, from some of its problems before gas prices started to go up. And it really hobbled them because they didn't have enough of a market share in smaller vehicles to make up for the lack of sales in trucks and SUVs. And then just as those gas prices started to moderate, we got into a credit crisis which really stopped everybody else from buying cars.

To give you some perspective on this, back in 2007 there were 16 million-plus cars sold in the United States. We're now on track, if things carry on the way they are, to sell fewer than 10 million in 2009. So that's the problem. The wheels really did come off a recovery that was going on at GM.

Absolutely necessary. GM is going to merge into a smaller, leaner company. Perhaps the example that Ford has set over the last few years.

Ford started this restructuring to make itself a smaller company a few years ago. That might be what we start to see out of GM, a smaller, full-line automaker. Not just trucks and SUVs, but good, smaller cars as well.

HARRIS: Yes.

Stephanie, smaller and leaner, but a big hurdle would still remain -- getting buyers to buy those cars that the new GM makes. STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: Right. And that is a fundamental problem that the U.S. automakers have really had here, Tony.

You've got this perception among many Americans that the U.S. cars are just not as strong, not as reliable as foreign-made cars. And so that's something that they're going to have to beat out.

And then another interesting thing to point out here, too, according to J.D. Power and Associates, when it comes to college- educated buyers, they tend to go for European cars. In fact, 70 percent of cars sold in the U.S. to college-educated folks are of European make. So if you look at that, and then you look at the fact that the Detroit cars make up about 39 percent for that same demographic, then it lends to the idea they also have to get that idea of style changed in the minds of the consumers.

And, you know, you heard Ali talking about that fact that the car sales are under 10 million. That is a huge issue. Some people think that before sales come back, maybe there's some pent-up demand because of the economy, and if the economy comes back those sales will go up. But clearly, a big issue here is you've got to get people in the United States buying cars again.

HARRIS: Yes, jump in, Ali.

VELSHI: Stephanie, keep one thing in mind. GM had the "Car of the Year" last year with the Malibu, which is meant to compete against the Camry. And when you sit in it for a lot less money, it does feel like that good a car. They do very well.

The "Truck of the Year" was the Silverado. Again, a great truck.

They make a Corvette, they make these Cadillacs which are really, really eye-turning. So, they seem to have the ability to design the cars, they just haven't applied that to the smaller, more fuel- efficient cars.

If they can create those small cars that have that sexiness and that feel -- this is the challenge that Ford has as well -- then they'll bring people because, ultimately, this isn't about financial engineering, Tony. This is about can you sell cars that people want to buy? Because if you can, then you have a company.

HARRIS: Yes. And really, this is the hand you're dealt with, so you have to make it work.

But let me turn to another area here. The government owning -- what's the number here, Ali, 60 percent...

VELSHI: Sixty percent.

ELAM: Sixty, yes.

HARRIS: Sixty percent of this company.

VELSHI: Yes.

HARRIS: A lot of folks are uncomfortable with that idea. Was there any other way?

VELSHI: Well, let me tell you, 60 percent is the U.S. government; 12 percent is the Canadian government; 17.5 percent is the United Auto Workers; 10 percent are the bondholders. And guess what? None of those people want to own shares of GM. None of those people want to be part of it.

So, if you're uncomfortable about the government owning it, apparently so is the government. They don't want to own it. They don't want to run it. They've made it very clear.

They've put a consulting team in place, one of the best consulting businesses in America, in place to find the right people to run this company. They would like it to get back, get listed again, get profitable, and they want to get out of it. So, we're all in the same boat that we don't like the idea that the government's owning General Motors.

HARRIS: Boy, and...

ELAM: And they do.

HARRIS: Go ahead, Stephanie.

ELAM: They want do want to come out of that and make sure that the taxpayers try to recoup their money, but they do want to get rid of their stake in GM as quickly as they possibly can.

HARRIS: How do you do that? I mean, we know we're in it now. And maybe the question is, what's the exit strategy? You remember that line, the exit strategy?

What is the exit strategy for the federal government to get out of the car business? Do you have an answer on that or...

VELSHI: I'll tell you what's interesting to me. The government -- and Stephanie knows this -- the government really emphasized they don't want to be involved in the day-to-day planning of this. I think government knows it's not necessarily a good business runner, good business manager, and they might not do any better than the private sector can do.

So, they want to concentrate on getting the right people into GM and doing what has to happen to get the right kind of cars manufactured, because that's the only way. That's the only exit strategy, is for General Motors to become a profitable business.

HARRIS: Well, I was wondering when the producers would pull the plug on our discussion. It just happened.

Guys, appreciate it. Ali, Stephanie, thank you very much.

ELAM: Sure. HARRIS: You know, we expect to hear from President Obama within the hour on the GM bankruptcy. The president will make the case that bankruptcy and additional federal help were necessary.

Live coverage of his remarks scheduled for 11:55 Eastern. That's 8:55 Pacific, right here in the CNN NEWSROOM.

The bankruptcy filing means uncertainty and anxiety for tens of thousands of GM workers. CNN's Deborah Feyerick is at a General Motors plant in Warren, Michigan. She has reaction form workers there.

You know, Deb, it is one thing knowing something is likely to happen, and another to see that thing actually take place. The emotions can be quite different.

What are people there saying to you?

DEBORAH FEYERICK, CNN CORRESPONDENT: Well, that's exactly right, Tony. As a matter of fact, the uncertainty now giving way to a greater sense of certainty. Twenty thousand people scheduled to lose their jobs in nine states, including Indiana, Ohio, Virginia, and Michigan, where we are right now, just to name a few.

You know, you talk about the exit strategy, what is the exit strategy? Well, the exit strategy is simply to build the right kind of cars, make sure they sell so that stock prices go up and that the company once again becomes viable. That's the whole point of trying to declare this bankruptcy for these workers, so that there are workers who will be able to keep their jobs and maybe get this company back on its feet again, back up and running.

And that's what's going to happen, and the workers here know that. Yes, there was a lot of anxiety. Yes, they were worried. They know that not all of them are going to survive this. But at the same time, they realized that there simply was no other option.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: You don't know what to expect. I mean, it's about time that things are happening. It's been a long time coming, but I have seen a lot of changes in my lifetime through General Motors, and it's like -- it's just an unseeable situation. You don't know what's going to happen.

Hoping we will be going for the better. You know, we've been giving up a lot of concessions throughout the years and stuff. And people say, well, the taxpayers are paying all the loans. Well, I'm a taxpayer. I'm paying it back, and this is my job.

(END VIDEO CLIP)

FEYERICK: And that's one of the most important things to remember, is that now the taxpayers, U.S. citizens, own 60 percent of this company. So, it's in everybody's best interest that it gets back up and running so that it can become profitable once again. And that's why the government is investing a total of $50 billion to make sure that that happens.

What ultimately will shake out, the more profitable parts of the company, Cadillac, Chevrolet, those will become the new GM. The old GM, the brands that were not selling well like Hummer and Saab and Pontiac, those will likely be liquidated. And so, really, what they're doing is cutting the fat and they're creating the kind of company that they believe can survive and, perhaps, redefine the American auto industry -- Tony.

HARRIS: All right. Fingers crossed on that.

CNN's Deborah Feyerick for us at a General Motors plant in Warren, Michigan.

Deb, good to see you, as always. Thank you.

GM bondholders are also reacting strongly to this bankruptcy. Earlier on CNN's "AMERICAN MORNING," John Roberts spoke with a Florida teacher who has $70,000 invested in GM.

(BEGIN VIDEO CLIP)

JOHN ROBERTS, CNN ANCHOR: What was your reaction, then, when you heard that General Motors was going to go into bankruptcy? You said you had resisted this plan, you didn't agree with it. The major bondholders were the ones who said, yes, go ahead and do this debt for equity swap.

What did you think when you heard they were going into bankruptcy and that was the deal?

DEBRA JUNE, GM BONDHOLDER: Well, I'm in shock. When I bought into GM, I thought, you know, it's a safe thing. I bought six years ago.

I always thought it was safe, even when the government came in. I was so excited. I said, well, they're going to take over.

But Obama's task force, these people came in. They didn't negotiate. We had no say.

The private investor had no say in the matter. They dealt with the big corporations.

Obama's for the people, he said. How can he be for the people? How can he do this?

(END VIDEO CLIP)

HARRIS: Wow. All right.

This bankruptcy was certainly no surprise to Wall Street. GM taken off the Dow Industrial Average list this morning. Delisted. But right now, what's happening with the stock?

Oh, that print is too small. I can't read that. (STOCK MARKET REPORT)

HARRIS: And still to come in the NEWSROOM, a controversial doctor who performed late-term abortions is gunned down at his church.

(COMMERCIAL BREAK)

HARRIS: In Kansas, a 51-year-old man has been arrested, charged with shooting and killing a doctor who performed abortions.

CNN's Ted Rowlands is in Wichita.

And Ted, good to see you.

You know, there are so many thoughts on this story that I have. Boy, for those watching who maybe have been away for the weekend or are just hearing about this story, what happened yesterday? And it's amazing when you think about the fact that here is a doctor who was gunned down in his church yesterday.

TED ROWLANDS, CNN CORRESPONDENT: Yes, Tony. Dr. George Tiller was the victim in this, and he's, quite frankly, had a target on his back, if you will, for decades.

He had an abortion clinic that was bombed back in 1985. And he's really been the focus of a lot of anti-abortion foes, if you will, in this ongoing battle.

But on Sunday morning he's at his church. He's serving as an usher, so he's out sort of in the foyer area in front of the church, greeting people as they come in.

The service had already started. His wife was singing in the choir. And according to police, the gunman came in and shot him and killed him with just one shot.

They have not disclosed where he was shot, but Dr. Tiller was pronounced dead on the scene as soon as paramedics arrived. And they were there very quickly.

There were a few witnesses there. They did get a chance to ID the gunman, and they got a license plate number. And that led authorities to making an arrest about four hours later.

The gunman, as you mentioned, a 51-year-old man, Scott Roeder. He was arrested on I-35 near Kansas City, pulled over without incident. They didn't find the gun when they arrested him, but they did have one thing of note. In his car was a red rose, a single rose, and that is a sign that a lot of anti-abortion folks have.

Now, who is this guy? He is known in the anti-abortion community, and he also made some headlines back in 1993. He was arrested for a weapons charge. He basically had explosives in the back of a car at the time he was a freeman.

Still, people on both sides reacting to this. Just can't believe the brutality of the act that took place on Sunday.

HARRIS: Hey, Ted, and I understand you have a producer working with you who is at a press availability right now in Wichita, but it's unclear that we will learn any additional information about this suspect or about the shooting yesterday. Is that what you're hearing?

ROWLANDS: Here's basically what's going on here. They're trying to figure out a couple things. Do they charge him in federal court or state court? Do they bring him in right now and have his initial court appearance today or wait until tomorrow?

They're deciding those details. We expect that he will make a court appearance today, this afternoon at the earliest. But that's sort of where it's leaning.

And then the other thing is the charging. Do they go for the death penalty? That will be a decision made later. It is -- in Kansas there is a death penalty, so that also most likely part of the discussion.

HARRIS: Got you. All right.

CNN's Ted Rowlands for us in Wichita, Kansas.

Ted appreciate it, as always. Thank you.

The shooting death of Dr. George Tiller is likely to reignite the abortion debate. Tiller performed rare late-term abortions. That's usually when the pregnancy is terminated in the second trimester due to complications.

Tiller was one of just a handful of doctors in the United States who, under special circumstances, anyway, performed abortions in the third trimester. Under Kansas law, late-term abortions can be performed on a viable fetus if two doctors agree that giving birth would cause irreparable harm to the mother.

You know, a number of voices are reacting to this story. Nicole Lapin is back with us and she is monitoring those reactions.

Nicole, good to see you.

NICOLE LAPIN, CNN.COM CORRESPONDENT: Good to see you, Tony.

The reaction, of course, is coming in fast and furious. The president chiming in, saying however profound our differences as Americans over difficult issues such as abortion, they cannot be resolved by heinous acts of violence. Also, the attorney general joining in, talking about some of the precautionary measures taken to prevent related acts from occurring. He's also saying that he's directing the U.S. Marshals to serve and offer protection to other appropriate people and facilities around the nation, Tony.

And then we have two sides of this issue. The NARAL pro-choice president is joining the conversation, saying, "The murder will send chills down the spines of the brave and courageous providers of reproductive health centers that serve women across the country." And also, David O'Steen, the executive director of the National Right to Life Committee, is saying the pro-life movement works to protect the right of life and increases respect for human life. The unlawful use of violence is directly contrary to that goal."

Tony, this isn't the first time we've seen this from abortion providers. Take a look at this graphic we have.

During the 1990s, three doctors who performed abortions were killed in high-profile cases. In 1998, a sniper killed Dr. Barnett Slepian in his Amherst, New York, home. An anti-abortion activist was later arrested in France and is serving life in prison.

In '94, a doctor and a volunteer escort, Tony, were shot and killed outside an abortion clinic in Pensacola, Florida. Paul Hill, a former minister, was convicted in those killings and executed in 2003. In '93, another. Dr. David Gunn was shot to death outside another Pensacola clinic.

So, Tony, this isn't the first time we've seen this. Also, you'll remember the case out of Alabama. A nurse was maimed and an off-duty police officer was killed in that 1998 bombing by Eric Rudolph, who included abortion among his list of anti-government grievances.

So, putting the story in perspective for you.

HARRIS: OK. Nicole, appreciate it. Thank you.

LAPIN: You're welcome.

HARRIS: You own a General Motors car, truck or SUV. Now what do you do? Our Personal Finance Editor Gerri Willis has her "Top Tips" next.

(COMMERCIAL BREAK)

HARRIS: GM's bankruptcy filing, what does it mean for your warranty? OK. And is now a good time to buy?

CNN's Gerri Willis, your personal finance editor, live from New York.

And Gerri, good to see you. Where do we start here? Maybe dealerships?

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: You bet.

Well, Tony, look, if you own a GM car, one of your bigger issues might be the dealership that you're used to going to may shut down. And that means you may have to travel farther to get your car serviced, wait times may be longer.

And to find a new place to get your car serviced, to GM's dealer locator tool. It's located on their Web site. Look, if it's just routine maintenance you need, maybe an oil change, you might want to consider going to an independent shop for that. Not only would it be more convenient, but "Consumer Reports" says you'll spend less on it. Just make sure you hang on to those receipts.

HARRIS: Yes, that's a good call there.

What's your advice for people who just want to get a GM car on the cheap, dare I say?

WILLIS: Well, the time is right. You know?

Look at the incentives on GM cars. They're historic.

For example, $4,500 cash back on a 2009 Cadillac Escalade; $7,000 back on a 2009 Chevy Tahoe; $6,000 back on a Chevy Impala from 2009. There's also low-interest financing. All of this before dealer discounts, which depends on where you live, the type of car you want, and your dealer.

And as we mentioned, the warranties shouldn't be a problem since both the company and Uncle Sam are standing behind them. So, yes, yes, yes, you can get a good deal.

HARRIS: On the cheap.

What is the best strategy, then, for getting that rock-bottom deal on a GM car, Gerri?

WILLIS: All right. If we're going to strategize here...

HARRIS: Let's do that.

WILLIS: ... find a dealer that's going out of business. The deal you get is more dependent on how the dealer is doing rather than how GM is doing. Dealerships going out of business will be obviously more desperate to get cars off the lot.

Call, don't visit, the dealership first. Ask if they have the car you're interested in before you go there. This way you avoid getting persuaded into buying something that you didn't want.

Also, know the incentives and the price the dealer paid for it. Twenty-five percent -- 25 percent -- of vehicles are sold below what the dealer paid for it across the board. Seventeen percent of GM vehicles are sold that way. Check out truecar.com -- truecars.com. They have that kind of data.

Negotiate, but don't bully. Don't go in asking half off the value. But do have leverage. You do have leverage in this market because the whole market for auto sales weak right now.

Keep in mind, too, you may have to wait a few weeks or even months to get the very best deals. Availability of these cars are going to go down, down, down over time. So, you may have to contend with a car with a color you don't like or maybe features you're not crazy about. But, yes, you can get a deal.

Wait a few months is my advice, before you get in there and really start your hard-core negotiating. Because the longer these dealers have these cars on the lot, the more they're going to want to get rid of them.

HARRIS: Well, if that's your advice, I'm following you, Gerri. Thank you, Gerri. See you tomorrow.

WILLIS: My pleasure.

HARRIS: Thank you.

And you can track the history of GM and Chrysler bankruptcies by logging on to CNNmoney.com.

Cities, towns and communities across the country hear the news from General Motors. Some plants will be shut down.

(COMMERCIAL BREAK)

HARRIS: Michigan's governor says the GM bankruptcy means her state can only go up from here. She appeared earlier on CNN's "AMERICAN MORNING."

(BEGIN VIDEO CLIP)

GOV. JENNIFER GRANHOLM (D), MICHIGAN: We can finally see that we are hitting bottom. We've been -- these auto companies, Chrysler, too, Ford, too, have been in the middle of restructuring plans since the year 2000. So, we have lost hundreds of thousands of jobs.

And the uncertainty of not knowing when bottom was going to arrive had made it much more difficult. So now, we know that we've got an administration that's behind a viable American auto industry. It's going to be a tough summer, but we're going to emerge. We'll have a new GM, a new Chrysler and ultimately a new Michigan.

(END VIDEO CLIP)

HARRIS: How about this. Take a look at this map here. All those blue dots are GM facilities. Now look. This shows where GM is closing plants. GM's decision to shutter these plants will have a ripple effect on all kinds of businesses in those affected area.

The GM plant in Spring Hill, Tennessee, is being put on stand-by capacity. Twenty-five hundred workers told: Wait. Wait. We will call you if we need you. Our Sean Callebs is in Spring Hill, about 30 miles south of Nashville. And Sean, first of all, good to see you. What happens to all those workers?

SEAN CALLEBS, CNN CORRESPONDENT: Yes, it's a bitter pill for folks here to swallow. Stand-by capacity simply means it will be shutting down at the end of the year, poised to reopen if and when the economy turns around. You see the Saturn sign behind me. This was supposed to be the factory that revitalized GM. Well, the hype never lived up to what really happened. This factory hasn't made a Saturn in two years. They've been making the Chevy Traverse.

Now, what happens to the employees here? Some of the 2,500 who will lose their jobs can move on to Lansing, Michigan and continue to make the Chevy Traverse there. The other ones? Tehy are going to have to live on a severance.

But before you shed too many tears, Tony, I want to point out that a severance from the UAW means they could receive 100 percent of their pay for one year, 50 percent of their pay for the next year.

So, without question, this tremendous financial dire straits that GM is in is being felt from the production line to the sales floor. With more on that, let's go to Maggie Lake, who is in New Jersey at a dealership.

MAGGIE LAKE, CNN INTERNATIONAL BUSINESS CORRESPONDENT: Sean, that's right. We are here in Green Brook, New Jersey. The fate of this dealership is unknown. Of course, the company has announced about 1,000 dealers will be closing. But there are more to come. And that news is going to come out in the next days and weeks.

The reaction here is really mixed. A lot of the folks, the owner very heartbroken for their colleagues that are finding out and have found out that they'll be losing their jobs. But I have to tell you, there's also a lot of relief. They feel they've been operating under a black cloud with the threat of bankruptcy. It's really been holding them back.

They believe that GM is now building the cars that consumers want to buy. I'm standing right between a Buick Enclave and GMC Acadia. They've been selling very well. But the owner here feels like only in bankruptcy, a speedy bankruptcy, will they be able to get the balance sheet in the kind of financial shape to be able to compete and get the word out and get consumers through the door.

So, surprisingly a little bit of relief. But clearly, this is a tough day for everyone -- Sean.

HARRIS: OK. Maggie, appreciate it. Sean, thank you as well.

The mayor of Lansing, Michigan calls the bankruptcy of GM an American tragedy. He blames free trade and the outsourcing of jobs. On CNN's "AMERICAN MORNING," John Roberts asked the mayor what role the auto companies played in their downfall.

(BEGIN VIDEO CLIP)

JOHN ROBERTS, CNN ANCHOR, "AMERICAN MORNING": Is this really all about giving away the store, or is this at least partially because you've got some big companies here who failed to look into the future, failed to build cars that people really wanted to buy, failed to adapt? We're saddled with these legacy costs through deals that they kept on crafting with the auto workers that were just unsustainable?

VIRG BERNERO, MAYOR, LANSING, MICHIGAN: You know what, John? A legacy cost is my father, 84 years old, worked hard every day of his life. And thousands like him who earned their pensions and got health care because our government didn't provide it.

But governments for those other companies, for the competitors, they provided health care. So, that's again part of that unfair playing field. You know, you can try to blame the company. You can try to blame the union. I'm not saying you are, but people have.

And the reality is, look, we're certainly no more -- we're as productive as any people on the face of the planet. We created the whole process that other countries learned from. We're making excellent cars, better cars than ever before. Cars like the Chevy Malibu, the Cadillac CTS. We're making more hybrid vehicles, GM, than any other company on the face of the planet.

The fact is, it's an unlevel playing field. It's a race to the bottom that's been set up. And if you look, John, industry after industry in this country, whether you're talking about textiles or steel or electronics or furniture, all of these jobs have been outsourced.

Could it really be the managers and workers in all those fields are incompetent compared to the competition? I tell you, it gets back to free trade. We have set up a field that is unfair that puts the American worker at a disadvantage. You know, the Japanese government puts their workers first. The French government recently put their workers first with Renault. We need a policy that puts American workers first.

(END VIDEO CLIP)

HARRIS: OK. Just another reminder, the president is going to be making a statement in just a couple of minutes. About 15 minutes from now is when it is scheduled on the bankruptcy filing of GM. Of course, we will have those remarks for you when the president begins.

You know, we are also following the new developments on air france Flight 447. We also have new information on Flight 1549, that January splash landing, people were calling "The Miracle on the Hudson." Boy, you've got to see this one.

(COMMERCIAL BREAK)

ROB MARCIANO, AMS METEOROLOGIST: Hello, again. I'm Rob Marciano in the CNN severe weather center, or on this day and for the next six months, your hurricane headquarters. The beginning of the Atlantic tropical season or hurricane season is today.

We're looking at the Atlantic Ocean. This area, generally speaking, is not quite warm enough to sustain hurricanes. And the winds aren't quite right, at least for this time of year. Where we typically look for action is in the northwest Caribbean, the Gulf of Mexico. And these are the climatologically favored tracks if we do see development. And we haven't seen any today, although we did have a depression last week.

Named storms expected by NOAA, nine to 14. Hurricanes, four to seven. Major hurricanes, one to three. That's about average. And that's good news. And we'll hope that certainly those storms that do develop don't formulate into much of anything.

All right, well, we have today across much of the Midwest, thunderstorms, some of them heavy at times across parts of Chicago. Likely some air travel delays there. This will probably hang around there. And unseasonably cool air across parts of the Northeast, and pretty warm and sunny down across parts of the South.

That's the latest on weather. The CNN NEWSROOM with Tony Harris will be right back.

(COMMERCIAL BREAK)

HARRIS: Well, it is an absolutely unforgettable story, one of the stories of the year so far. Flight 1549 landing on the Hudson River, and every single passenger escaping. Now, four months later, some of the passengers are actually getting their luggage back, luggage that was submerged with the plane wreckage.

How did my laptop hold up and that wool sweater I loved so much? Should I just give it to my 7-year-old? Tyson Wheatley from cnn.com's iReport desk joining us with an inside look -- Are you kidding me? -- into one survivor's suitcase, Tyson?

TYSON WHEATLEY, CNN.COM PRODUCER: Yes, that's right, Tony. Today a very special update from iReporter Eric Stevenson. He was a passenger aboard Flight 1549, which of course crash-landed on the Hudson River January 15th. Commonly referred to as "The Miracle on the Hudson" because all 155 passengers and crew survived.

Eric shared these photos in the moments after the crash on iReport.com. And then later, he came on the air and shared a personal account of this dramatic rescue with CNN. Today, a new iReport from Eric. He's a businessman living in Paris.

And he got a special package in the mail four months after the emergency landing. This, of course, his luggage from the flight, once submerged in the icy waters of the plane's cargo hold, now finally home.

Now, you're looking at photos Eric shared in his box containing his suitcase and other personal items. We asked Eric to describe the contents and also share his feelings four months later. Listen to what he had to say.

(BEGIN VIDEO CLIP)

ERIC STEVENSON, CNN IREPORTER: Overall, the company that managed the restoration did a good job. Everything was thoroughly cleaned but had a strong chemical smell. Wool items shrunk due to the freezing Hudson water. See how short the sleeves are now on my sports coat? Leather items like these shoes look worn and now need reconditioning. All electronic items were corroded and not usable. I'm missing some valuable items in my bag, and I hope they turn up. However, it's minor in the scheme of things. We were lucky to escape with our lives, thanks to the heroism of the pilot, crew and rescuers.

Finally, seeing my luggage again felt very strange, knowing it was submerged with the aircraft. The last time I saw these items was the morning of the crash, and now they finally returned home as if they have their own story to tell.

(END VIDEO CLIP)

WHEATLEY: All right, Tony, so, more than 36,000 personal items and effects from the passengers of that flight are being -- have been recovered and now being restored. And the good news is that this month, many of those passengers can expect to see many of those items being returned.

HARRIS: And yet they still lost some things.

WHEATLEY: Absolutely.

HARRIS: All right, Tyson, appreciate it. Thank you.

WHEATLEY: Thank you, Tony.

HARRIS: Well, let's get to these live pictures now, live pictures of the White House. We are about, oh, less than ten minutes away, actually, from President Obama. He is expected to make some remarks on the General Motors bankruptcy filing this morning. When the president begins those remarks, we'll take you to the foyer of the White House. Less than ten minutes away. We're back in a moment.

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HARRIS: The impact of GM's bankruptcy filing reaches overseas. The plan includes a deal to sell off the company's European operations, including Opel, Vauxhall and Saab. Covering that angle of the story for us is CNN Madrid bureau chief Al Goodman at an Opel production plant in Spain and our Fred Pleitgen live at the main GM Opel plant in Germany. If I could, let me have you gentlemen hold on for just a second. Here's the president of the United States.