English subtitles for clip: File:6-1-09- White House Press Briefing.webm
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1 00:00:10,300 --> 00:00:12,600 The Press: (inaudible) 2 00:00:12,600 --> 00:00:14,200 Mr. Gibbs: This is a bad T.V. tie? 3 00:00:14,200 --> 00:00:15,200 The Press: I think it's -- (inaudible). 4 00:00:15,200 --> 00:00:16,470 Mr. Gibbs: Do you want -- can we trade real fast? 5 00:00:16,467 --> 00:00:17,267 The Press: (inaudible) 6 00:00:17,266 --> 00:00:18,136 Mr. Gibbs: All right. 7 00:00:18,133 --> 00:00:19,303 The Press: (inaudible) 8 00:00:19,300 --> 00:00:20,570 (laughter) 9 00:00:20,567 --> 00:00:22,437 Mr. Gibbs: I tell you, I wouldn't wear Bill's tie on T.V. 10 00:00:22,433 --> 00:00:24,033 (laughter) 11 00:00:24,033 --> 00:00:24,763 I'm kidding. 12 00:00:24,767 --> 00:00:25,467 All right. 13 00:00:25,467 --> 00:00:27,667 The Press: What was the package that was left inside the gate, 14 00:00:27,667 --> 00:00:29,137 the northeast gate? 15 00:00:29,133 --> 00:00:31,233 Mr. Gibbs: I simply saw an email that said there was one, 16 00:00:31,233 --> 00:00:34,133 but I have not seen an email since then. 17 00:00:34,133 --> 00:00:35,403 The Press: You don't know what it was or -- 18 00:00:35,400 --> 00:00:36,870 Mr Gibbs: No, when we get a -- 19 00:00:36,867 --> 00:00:37,837 The Press: Where inside the gate was it? 20 00:00:37,834 --> 00:00:38,864 Mr. Gibbs: Hmm? 21 00:00:38,867 --> 00:00:39,997 The Press: Where inside the gate was it? 22 00:00:40,000 --> 00:00:41,630 Mr. Gibbs: It just simply said -- I didn't even know it was 23 00:00:41,633 --> 00:00:42,563 inside the gate. 24 00:00:42,567 --> 00:00:44,367 They just said along the gate -- was, I think, 25 00:00:44,367 --> 00:00:45,797 the email that I saw. 26 00:00:45,800 --> 00:00:48,130 But I didn't see anything other than that. 27 00:00:48,133 --> 00:00:50,363 The Press: Was the First Lady, anyone in that office moved since there 28 00:00:50,367 --> 00:00:53,197 was a -- such a lock-down situation in the front? 29 00:00:53,200 --> 00:00:55,500 Mr. Gibbs: I can check, but nobody apprised me of that before I 30 00:00:55,500 --> 00:00:56,430 came out here. 31 00:00:56,433 --> 00:00:59,003 The Press: Is it open yet? 32 00:00:59,000 --> 00:00:59,900 Mr. Gibbs: Is it all clear? 33 00:00:59,900 --> 00:01:02,970 They got the email and read it; I didn't. 34 00:01:02,967 --> 00:01:03,937 The Press: Thank you, Robert. 35 00:01:03,934 --> 00:01:05,804 Leader Boehner said the administration has got to 36 00:01:05,800 --> 00:01:08,370 release an exit strategy for General Motors. 37 00:01:08,367 --> 00:01:10,737 Does the President have an exit strategy? 38 00:01:10,734 --> 00:01:13,534 And I know he described these principles that he's going to 39 00:01:13,533 --> 00:01:16,433 follow during restructuring, but is there a timeline for 40 00:01:16,433 --> 00:01:19,033 Washington to get out of Detroit for good? 41 00:01:19,033 --> 00:01:25,033 Mr. Gibbs: Well, Phil, as you know, the President has made a series of 42 00:01:25,033 --> 00:01:31,503 difficult decisions that lead us to the point where we are now. 43 00:01:31,500 --> 00:01:34,200 And as he has said on many occasions, 44 00:01:34,200 --> 00:01:38,330 he doesn't desire to hold a significant share of, 45 00:01:38,333 --> 00:01:42,003 or run on a day-to-day basis, an auto company. 46 00:01:42,000 --> 00:01:47,830 But he does believe that the investment that we're making -- 47 00:01:47,834 --> 00:01:51,834 structured in what is in the best interests of taxpayers, 48 00:01:51,834 --> 00:01:58,264 and it -- we'll get out of this equity as quickly as possible in 49 00:01:58,266 --> 00:02:01,596 order to protect the investment that taxpayers have made. 50 00:02:01,600 --> 00:02:05,730 I don't know that there's a specific timeline. 51 00:02:05,734 --> 00:02:09,264 But, Phil, let me broaden a little bit, 52 00:02:09,266 --> 00:02:11,836 because -- and I did this a little on Friday, 53 00:02:11,834 --> 00:02:17,304 but you basically had several different pathways here. 54 00:02:17,300 --> 00:02:24,600 On one side you had a bankruptcy that largely would 55 00:02:24,600 --> 00:02:31,030 have resulted in a liquidation -- probably 60,000, 70,000 56 00:02:31,033 --> 00:02:36,563 direct jobs lost, not including suppliers or things like that -- 57 00:02:36,567 --> 00:02:40,967 obviously would have had a dramatic economic devastation in 58 00:02:40,967 --> 00:02:44,267 the Midwest region and throughout the country. 59 00:02:44,266 --> 00:02:52,296 I think another side of this was simply to continue pouring money 60 00:02:52,300 --> 00:02:59,730 into a company that you knew wasn't acting in any viable way. 61 00:02:59,734 --> 00:03:08,104 The President decided on a different path that I think made 62 00:03:08,100 --> 00:03:11,730 some real concessions in restructuring the company. 63 00:03:11,734 --> 00:03:15,364 You'll have a company after about a 60- or 90-day bankruptcy 64 00:03:15,367 --> 00:03:19,767 that will emerge without a balance sheet loaded down with 65 00:03:19,767 --> 00:03:26,897 debt; a restructured company that the task force and the 66 00:03:26,900 --> 00:03:31,000 President believe can be profitable in a scenario that 67 00:03:31,000 --> 00:03:36,700 sells far fewer cars than what it would take to break even at this point. 68 00:03:36,700 --> 00:03:38,970 So the President is certainly anxious to get out of this 69 00:03:38,967 --> 00:03:42,137 business, but at the same time he made a series of tough 70 00:03:42,133 --> 00:03:46,803 decisions to stave off something that I think would have been far 71 00:03:46,800 --> 00:03:48,670 more economically devastating. 72 00:03:48,667 --> 00:03:50,437 The Press: But there is no exit strategy? 73 00:03:50,433 --> 00:03:53,133 Mr. Gibbs: Well, no, no, no -- I don't -- 74 00:03:53,133 --> 00:03:54,533 The Press: Do you want to -- 75 00:03:54,533 --> 00:03:58,603 Mr. Gibbs: Well, maybe I should -- I can start all over again. 76 00:03:58,600 --> 00:04:02,670 There is an exit strategy -- it's to get this company viable; 77 00:04:02,667 --> 00:04:06,937 it's to get the economy strengthened so that GM is 78 00:04:06,934 --> 00:04:08,934 producing cars that people want to buy; 79 00:04:08,934 --> 00:04:12,164 that Americans have the income to buy those cars; 80 00:04:12,166 --> 00:04:14,836 to do so in a restructured way that allows them to be 81 00:04:14,834 --> 00:04:19,804 profitable more quickly; and then in order to protect the 82 00:04:19,800 --> 00:04:22,100 investment that taxpayers have made, 83 00:04:22,100 --> 00:04:28,330 we get out of any involvement in the company -- that's the exit plan. 84 00:04:28,333 --> 00:04:29,603 Yes, ma'am. 85 00:04:29,600 --> 00:04:32,630 The Press: Robert, I wanted to zero in on the President's pledge to be 86 00:04:32,633 --> 00:04:35,863 hands-off when it comes to the day-to-day management of the company. 87 00:04:35,867 --> 00:04:38,697 And you've said the same thing from the podium, 88 00:04:38,700 --> 00:04:41,830 but a lot of people are very skeptical that Washington will 89 00:04:41,834 --> 00:04:46,234 really be able to resist the temptation to be hands-off. 90 00:04:46,233 --> 00:04:48,103 There's a lot of decisions that will come up that are 91 00:04:48,100 --> 00:04:51,500 politically sensitive, on Capitol Hill and elsewhere, 92 00:04:51,500 --> 00:04:55,900 such as which plants are going to close -- those types of things. 93 00:04:55,900 --> 00:04:58,700 Mr. Gibbs: Well, a lot of those decisions are being made right now. 94 00:04:58,700 --> 00:05:01,830 Those decisions are being made by the companies. 95 00:05:01,834 --> 00:05:03,934 The dealership structure -- those are decisions that are 96 00:05:03,934 --> 00:05:07,234 being made by the companies. 97 00:05:07,233 --> 00:05:09,663 The Press: But down the road there may be other decisions that have to be 98 00:05:09,667 --> 00:05:13,997 made -- dealerships and plants and things like that -- 99 00:05:14,000 --> 00:05:18,170 Mr. Gibbs: Let me interrupt you for a second. 100 00:05:18,166 --> 00:05:21,666 I don't think many people ever thought that we could get to 101 00:05:21,667 --> 00:05:25,037 this point of restructuring, in all honesty. 102 00:05:25,033 --> 00:05:29,703 I think if you take a look at what was set up by some in 103 00:05:29,700 --> 00:05:32,130 Congress in November and December when the very first 104 00:05:32,133 --> 00:05:36,863 discussions were going on about bridge loans to cover the 105 00:05:36,867 --> 00:05:40,667 operating costs for a fixed period of time while GM made 106 00:05:40,667 --> 00:05:43,537 some restructuring -- I think if you look at some of the 107 00:05:43,533 --> 00:05:50,133 standards that were laid out, the Auto Task Force has far 108 00:05:50,133 --> 00:05:54,433 exceeded what anybody thought was possible in restructuring. 109 00:05:54,433 --> 00:05:56,833 This is a company that will emerge from bankruptcy in 60 to 110 00:05:56,834 --> 00:06:01,604 90 days with no debt, whereas people were saying, well, 111 00:06:01,600 --> 00:06:04,770 it would be nice to have -- if we could get to some place that 112 00:06:04,767 --> 00:06:08,097 reduced the debt by maybe half. 113 00:06:08,100 --> 00:06:09,730 You've got a company that has, I think, 114 00:06:09,734 --> 00:06:15,304 a real chance to emerge viable based on some of the tough 115 00:06:15,300 --> 00:06:18,570 decisions that have been required. 116 00:06:18,567 --> 00:06:21,067 And I think a lot of those decisions have been made without 117 00:06:21,066 --> 00:06:22,866 politics in mind. 118 00:06:22,867 --> 00:06:27,367 The Press: But if lawmakers decide they do want to interfere with decisions 119 00:06:27,367 --> 00:06:29,567 such as the mix of vehicles and things like that, 120 00:06:29,567 --> 00:06:31,397 you can't prevent them from passing a law. 121 00:06:31,400 --> 00:06:33,500 What are the safeguards? 122 00:06:33,500 --> 00:06:35,570 Mr. Gibbs: I think you're now into a little bit of a different question. 123 00:06:35,567 --> 00:06:37,137 What if Congress acts to -- 124 00:06:37,133 --> 00:06:39,633 The Press: No, the question is about interference and meddling in the 125 00:06:39,633 --> 00:06:41,203 day-to-day operations. 126 00:06:41,200 --> 00:06:43,200 Mr. Gibbs: But let me make sure that I understand your question. 127 00:06:43,200 --> 00:06:45,770 Are you talking about if Congress does that, or if -- 128 00:06:45,767 --> 00:06:49,097 The Press: If Congress does that, as well as if Congress asks you 129 00:06:49,100 --> 00:06:50,530 to do it. 130 00:06:50,533 --> 00:06:54,563 Mr. Gibbs: Well, look, I think it would be unhelpful to get into a 131 00:06:54,567 --> 00:06:58,597 hypothetical on what we would do based on a bill that Congress 132 00:06:58,600 --> 00:07:03,800 might pass asking us to do something. 133 00:07:03,800 --> 00:07:09,770 I think that's a few too many leaps for me to go into. 134 00:07:09,767 --> 00:07:15,567 I can simply say that we will work on core governance issues. 135 00:07:15,567 --> 00:07:19,597 I think one of the ways to get to a viable company as quickly 136 00:07:19,600 --> 00:07:24,970 as possible is working on a board of directors, 137 00:07:24,967 --> 00:07:29,167 and a serious and stable management structure that moves 138 00:07:29,166 --> 00:07:33,436 this company quickly through bankruptcy and quickly to viability. 139 00:07:33,433 --> 00:07:36,633 I think those are the type of core issues that are important 140 00:07:36,633 --> 00:07:40,533 as we protect the investment of taxpayers while at the same 141 00:07:40,533 --> 00:07:44,603 time, as the President has said, as the task force has said, 142 00:07:44,600 --> 00:07:47,300 and lastly as I have said, not involved in the meddling 143 00:07:47,300 --> 00:07:49,300 decisions on a day-to-day basis. 144 00:07:49,300 --> 00:07:52,170 That's never been and isn't our desire. 145 00:07:52,166 --> 00:07:55,596 The Press: Just to probe a little further on the White House, 146 00:07:55,600 --> 00:07:59,070 on the administration's -- how much you're going to be involved 147 00:07:59,066 --> 00:08:02,336 in the day-to-day operations of the company -- if General Motors 148 00:08:02,333 --> 00:08:06,933 wants to manufacture a car that your Auto Task Force -- whether 149 00:08:06,934 --> 00:08:11,764 it's Rattner, Deese, or whoever -- thinks is not going to be a 150 00:08:11,767 --> 00:08:14,367 car that's going to sell very well, 151 00:08:14,367 --> 00:08:17,297 are you going to stop General Motors from manufacturing that car? 152 00:08:17,300 --> 00:08:20,370 Mr. Gibbs: Jake, we don't make those determinations. 153 00:08:20,367 --> 00:08:26,367 Those aren't -- Brian Deese isn't picking out Chevy Malibu's 154 00:08:26,367 --> 00:08:28,497 colors for next year. 155 00:08:28,500 --> 00:08:30,430 The Press: I'm not talking about their colors for next year. 156 00:08:30,433 --> 00:08:34,133 You said that the point is -- that the exit strategy is to 157 00:08:34,133 --> 00:08:37,733 make the company about -- viable so that GM is making cars that 158 00:08:37,734 --> 00:08:39,904 people want to buy. 159 00:08:39,900 --> 00:08:41,300 So are you going to be involved in -- 160 00:08:41,300 --> 00:08:44,300 Mr. Gibbs: No, we will be involved in corporate governance decisions 161 00:08:44,300 --> 00:08:48,600 such as setting up a board of directors that is going to make 162 00:08:48,600 --> 00:08:53,630 those business decisions based on how to get the company to profitability. 163 00:08:53,633 --> 00:08:56,633 That's what each company -- that's what the board of 164 00:08:56,633 --> 00:08:59,903 directors and the CEOs and the managers and the workers of 165 00:08:59,900 --> 00:09:03,870 every company we want to be involved in is a viable, strong, 166 00:09:03,867 --> 00:09:05,897 profitable company. 167 00:09:05,900 --> 00:09:09,230 Look, now, I don't want to confuse this, 168 00:09:09,233 --> 00:09:16,233 so obviously Congress and the executive branch are involved in 169 00:09:16,233 --> 00:09:18,433 -- have always been involved in some decisions. 170 00:09:18,433 --> 00:09:20,863 And again, I'm not -- I don't want to co-mingle these issues, 171 00:09:20,867 --> 00:09:24,567 but I am separating to some degree -- two years ago, 172 00:09:24,567 --> 00:09:26,967 Congress set fuel mileage standards that go through model 173 00:09:26,967 --> 00:09:28,937 2016, okay. 174 00:09:28,934 --> 00:09:30,164 Those have been established. 175 00:09:30,166 --> 00:09:31,636 I've seen reports that said, well, you know, 176 00:09:31,633 --> 00:09:35,063 we may -- the Auto Task Force may decide that it's time to 177 00:09:35,066 --> 00:09:38,736 build these tiny little cars that go 40 miles an hour, 178 00:09:38,734 --> 00:09:41,234 blah, blah, blah. 179 00:09:41,233 --> 00:09:45,063 Congress has always exercised its purview to set, 180 00:09:45,066 --> 00:09:48,166 for instance, corporate average fuel economy standards. 181 00:09:48,166 --> 00:09:49,636 That's, I know, not what you're talking about, 182 00:09:49,633 --> 00:09:52,063 but I am sort of separating some of those issues so that we're 183 00:09:52,066 --> 00:09:55,136 not in the midst of confusing them. 184 00:09:55,133 --> 00:09:56,003 The Press: Right. 185 00:09:56,000 --> 00:10:00,370 I guess my point is, Fritz Henderson said today that the 186 00:10:00,367 --> 00:10:04,937 standard is going to be that they're going to try to build, 187 00:10:04,934 --> 00:10:07,264 for their new lines of cars and trucks, 188 00:10:07,266 --> 00:10:09,666 ones that are outstanding that people want to buy -- which came 189 00:10:09,667 --> 00:10:12,197 as a surprise to me that this was some new idea for an auto 190 00:10:12,200 --> 00:10:15,400 manufacturer, the idea that they would try to come up with 191 00:10:15,400 --> 00:10:17,970 something that consumers actually would like to purchase. 192 00:10:17,967 --> 00:10:21,797 What reason do you have for confidence that United 193 00:10:21,800 --> 00:10:25,030 Automakers, the people who have been running these companies, 194 00:10:25,033 --> 00:10:27,863 are going to be able to come up with something that Americans 195 00:10:27,867 --> 00:10:30,197 are going to want to buy, and therefore, 196 00:10:30,200 --> 00:10:37,230 this $30 billion to $50 billion investment is going to pay off? 197 00:10:37,233 --> 00:10:40,563 Mr. Gibbs: Well, look, I think you have seen over the course of several 198 00:10:40,567 --> 00:10:44,797 years an auto industry that has seen, 199 00:10:44,800 --> 00:10:47,130 regardless of economic conditions, 200 00:10:47,133 --> 00:10:49,963 a fairly dramatic decrease in its auto sales, 201 00:10:49,967 --> 00:10:52,937 not the least of which is because some of -- you know, 202 00:10:52,934 --> 00:10:54,204 you've seen the reports -- 203 00:10:54,200 --> 00:10:56,970 The Press: Yes, and they kept on making Hummers and they kept on making 204 00:10:56,967 --> 00:10:58,597 junky cars that nobody wanted to buy. 205 00:10:58,600 --> 00:11:07,130 Mr. Gibbs: Well, I think part of the restructuring ultimately is that 206 00:11:07,133 --> 00:11:11,863 the Auto Task Force forced some decisions that I think in many 207 00:11:11,867 --> 00:11:16,037 ways some of these companies had been putting off for years. 208 00:11:16,033 --> 00:11:18,733 The auto companies have dropped brands. 209 00:11:18,734 --> 00:11:23,304 We've all seen that -- whereas some people -- different 210 00:11:23,300 --> 00:11:26,130 companies are marketing only a few different models and using a 211 00:11:26,133 --> 00:11:29,033 fixed number of advertising dollars to push them, 212 00:11:29,033 --> 00:11:33,003 whereas some of the American auto companies have had 10 or 12 213 00:11:33,000 --> 00:11:34,570 different models. 214 00:11:34,567 --> 00:11:39,497 You've seen different companies that have the same car -- 215 00:11:39,500 --> 00:11:42,370 literally the same car under different names and several 216 00:11:42,367 --> 00:11:47,997 different manufacturers, which hasn't made a lot of sense. 217 00:11:48,000 --> 00:11:52,270 Obviously I think, again, one of the things that's been done is 218 00:11:52,266 --> 00:11:53,936 there is a fundamental -- 219 00:11:53,934 --> 00:11:54,904 The Press: You're proving my point. 220 00:11:54,900 --> 00:11:55,900 You're proving my point. 221 00:11:55,900 --> 00:11:58,870 It's not like Fritz Henderson just walked in from another company. 222 00:11:58,867 --> 00:12:02,397 I mean, what makes you think that this investment's going to pay off? 223 00:12:02,400 --> 00:12:04,930 Just because they've learned the lesson now? 224 00:12:04,934 --> 00:12:11,034 Mr. Gibbs: I think in many ways their previous business model had them 225 00:12:11,033 --> 00:12:14,503 very locked in. 226 00:12:14,500 --> 00:12:17,230 I think you've all seen the reports today of the serious 227 00:12:17,233 --> 00:12:22,103 amount of debt that GM was carrying, right? 228 00:12:22,100 --> 00:12:24,830 When you're losing that kind of money, 229 00:12:24,834 --> 00:12:27,464 it's hard to undergo some fundamental restructuring 230 00:12:27,467 --> 00:12:30,567 without making some very fundamental decisions. 231 00:12:30,567 --> 00:12:36,237 I think it's pretty clear that the companies have, 232 00:12:36,233 --> 00:12:39,603 in many instances, decided that they've got to produce different 233 00:12:39,600 --> 00:12:44,870 cars; some of those are coming on in later model years. 234 00:12:44,867 --> 00:12:48,997 There are things like the Chevy Volt that I think people 235 00:12:49,000 --> 00:12:53,900 believe, based on the high price of gas, 236 00:12:53,900 --> 00:12:58,000 based on consciousness about our dependence on foreign oil, 237 00:12:58,000 --> 00:13:00,330 can create different markets. 238 00:13:00,333 --> 00:13:05,633 But I think that fundamentally what has happened is a company 239 00:13:05,633 --> 00:13:09,603 is free now to make fundamentally different decisions. 240 00:13:09,600 --> 00:13:10,030 Yes, m'am. 241 00:13:10,033 --> 00:13:12,863 The Press: Robert, have you defined the criteria for the board 242 00:13:12,867 --> 00:13:14,797 of directors? 243 00:13:14,800 --> 00:13:17,900 Mr. Gibbs: Not that I know of, but I can check on that. 244 00:13:17,900 --> 00:13:21,670 I don't know if there's been a strict delineation. 245 00:13:21,667 --> 00:13:27,037 The Press: But, I mean, sort of overriding principles for these people, 246 00:13:27,033 --> 00:13:28,333 because they will be key. 247 00:13:28,333 --> 00:13:29,433 Mr. Gibbs: Right, no, absolutely. 248 00:13:29,433 --> 00:13:34,363 I mean, look, I think you want a group of people that have been 249 00:13:34,367 --> 00:13:37,437 very successful in the businesses that they've run; 250 00:13:37,433 --> 00:13:40,403 that have some experience in running companies and understand 251 00:13:40,400 --> 00:13:44,870 what it means to undergo fundamental restructuring; 252 00:13:44,867 --> 00:13:49,637 to operate in a whole different world. 253 00:13:49,633 --> 00:13:53,263 Again, if you look at -- I used this analogy last week -- 254 00:13:53,266 --> 00:13:55,766 look, you're going to have to make fundamentally different decisions. 255 00:13:55,767 --> 00:14:00,537 30 years ago this was a company that employed probably 10 times 256 00:14:00,533 --> 00:14:03,733 the number of workers that it does right now. 257 00:14:03,734 --> 00:14:06,664 Obviously, there's a mind-set change that has to go on, 258 00:14:06,667 --> 00:14:11,097 and I think that's what they'll look for in a board of directors. 259 00:14:11,100 --> 00:14:13,500 The Press: Do you think they have to come from the auto industry, per se? 260 00:14:13,500 --> 00:14:16,070 Mr. Gibbs: Well, no I don't. 261 00:14:16,066 --> 00:14:17,696 I don't think that's necessary, no. 262 00:14:17,700 --> 00:14:23,770 I think that having people that understand how to run a good 263 00:14:23,767 --> 00:14:27,737 business means running a good business regardless of what 264 00:14:27,734 --> 00:14:29,734 you're doing. 265 00:14:29,734 --> 00:14:30,704 Yes, sir. 266 00:14:30,700 --> 00:14:34,570 The Press: Following up on this, you said the company is now free to make 267 00:14:34,567 --> 00:14:36,497 fundamentally different decisions. 268 00:14:36,500 --> 00:14:39,370 But I think the question is what if they don't? 269 00:14:39,367 --> 00:14:43,367 And adding to that, that the President has an obligation here 270 00:14:43,367 --> 00:14:46,437 -- if he's spending $30 billion or $50 billion of taxpayer 271 00:14:46,433 --> 00:14:50,933 money, he has an obligation to make sure that money is well spent. 272 00:14:50,934 --> 00:14:54,464 So if they make a decision he disagrees with on a line of cars 273 00:14:54,467 --> 00:14:57,697 or anything else, doesn't he have an obligation to taxpayers 274 00:14:57,700 --> 00:14:59,600 to make sure that the decision is a good decision? 275 00:14:59,600 --> 00:15:01,500 Mr. Gibbs: Well, I think he has a strong obligation to ensure that there 276 00:15:01,500 --> 00:15:05,200 is a management structure in place that is making smart 277 00:15:05,200 --> 00:15:06,430 business decisions. 278 00:15:06,433 --> 00:15:07,633 The Press: And if they're not? 279 00:15:07,633 --> 00:15:12,103 Mr. Gibbs: Well, I think we covered an example about two months ago of 280 00:15:12,100 --> 00:15:15,400 the President and the Auto Task Force thinking that GM might not 281 00:15:15,400 --> 00:15:20,430 have made business decisions that were so good in the past. 282 00:15:20,433 --> 00:15:22,103 But, again -- and this isn't -- 283 00:15:22,100 --> 00:15:23,370 The Press: So in other words -- 284 00:15:23,367 --> 00:15:26,997 Mr. Gibbs: But, Chip, is the President going to thumb through 285 00:15:27,000 --> 00:15:30,330 engineering reports and each page of the annual report? 286 00:15:30,333 --> 00:15:31,103 No. 287 00:15:31,100 --> 00:15:32,270 The Press: Well, I'm not asking. 288 00:15:32,266 --> 00:15:34,066 I'm asking fundamental business decisions. 289 00:15:34,066 --> 00:15:35,236 Mr. Gibbs: I'm simplifying this question -- 290 00:15:35,233 --> 00:15:36,633 (laughter) 291 00:15:36,633 --> 00:15:38,003 The Press: Thank you very much for that; appreciate it. 292 00:15:38,000 --> 00:15:39,700 Mr. Gibbs: -- a helpful service I provide from the podium. 293 00:15:39,700 --> 00:15:41,970 The Press: But I mean on big decisions -- on what lines of cars, 294 00:15:41,967 --> 00:15:44,137 what to go with. 295 00:15:44,133 --> 00:15:47,833 What if he simply disagrees and thinks they're making bad decisions? 296 00:15:47,834 --> 00:15:50,964 And he has an obligation to make sure the tax dollars are well spent. 297 00:15:50,967 --> 00:15:57,597 Mr. Gibbs: Well, the obligation is to find people to manage General Motors, 298 00:15:57,600 --> 00:16:00,970 when it emerges from bankruptcy as a different company. 299 00:16:00,967 --> 00:16:02,867 The Press: So it sounds like you're saying the leverage here isn't in 300 00:16:02,867 --> 00:16:04,867 getting in there and changing decisions, 301 00:16:04,867 --> 00:16:07,067 it's if he doesn't like the decisions he can change the 302 00:16:07,066 --> 00:16:09,066 people like he did two months ago. 303 00:16:09,066 --> 00:16:15,366 Mr. Gibbs: Look, I think, again, we will -- as we stated in our principles 304 00:16:15,367 --> 00:16:20,467 -- have a limited role, but vote on corporate governance issues. 305 00:16:20,467 --> 00:16:25,397 I think the President and the Auto Task Force are aware of 306 00:16:25,400 --> 00:16:27,630 what's involved and what's at stake, 307 00:16:27,633 --> 00:16:33,133 and the need to get a strong management team in there that 308 00:16:33,133 --> 00:16:35,203 can get this company to viability. 309 00:16:35,200 --> 00:16:38,570 The Press: And if I could follow up on the question about Congress -- you 310 00:16:38,567 --> 00:16:42,237 said it's a hypothetical, it's a lot of steps and a hypothetical, 311 00:16:42,233 --> 00:16:44,163 but I don't think it's hard to imagine that members of 312 00:16:44,166 --> 00:16:47,236 Congress, now that the government owns 60 percent of 313 00:16:47,233 --> 00:16:50,433 GM, would start saying, hey, we have a role here and start 314 00:16:50,433 --> 00:16:55,203 lobbying GM to build things in particular places or to -- 315 00:16:55,200 --> 00:16:56,500 (cell phone rings) 316 00:16:56,500 --> 00:16:57,930 Mr. Gibbs: I don't know where people get these ring tones. 317 00:16:57,934 --> 00:16:59,164 (laughter) 318 00:16:59,166 --> 00:17:00,266 Sorry. 319 00:17:00,266 --> 00:17:01,296 The Press: -- to make other decisions. 320 00:17:01,300 --> 00:17:03,470 I mean, it's not hard to imagine that Congress is going to start 321 00:17:03,467 --> 00:17:07,397 lobbying behind the scenes GM to do things in their states or do 322 00:17:07,400 --> 00:17:09,130 other things that they would like them to do. 323 00:17:09,133 --> 00:17:12,233 Will the President get actively involved in keeping Congress's 324 00:17:12,233 --> 00:17:13,763 fingers out of the mix? 325 00:17:13,767 --> 00:17:16,797 Mr. Gibbs: Well, again, I'm reminded that just last week you guys were 326 00:17:16,800 --> 00:17:19,800 asking me questions about Congress complaining about not 327 00:17:19,800 --> 00:17:21,970 being involved enough and now you're presenting me with 328 00:17:21,967 --> 00:17:24,967 situations where they would be overly involved in those decisions. 329 00:17:24,967 --> 00:17:26,137 The Press: They do both of those things. 330 00:17:26,133 --> 00:17:29,263 Mr. Gibbs: Well, I guess I'll come back on any given week to whichever 331 00:17:29,266 --> 00:17:32,236 scenario we're pursuing at that time. 332 00:17:32,233 --> 00:17:35,403 The Press: Okay, Robert, quickly on this exit strategy, 333 00:17:35,400 --> 00:17:38,430 is it -- will the administration deliver -- you talked about, 334 00:17:38,433 --> 00:17:40,833 that the President wouldn't thumb through annual reports, 335 00:17:40,834 --> 00:17:42,864 but at this point isn't the government responsible for 336 00:17:42,867 --> 00:17:47,067 delivering an annual report to taxpayers on how this money is 337 00:17:47,066 --> 00:17:48,096 being spent? 338 00:17:48,100 --> 00:17:49,530 Mr. Gibbs: I mean, that's, again -- 339 00:17:49,533 --> 00:17:51,333 The Press: To see when profitability is hit. 340 00:17:51,333 --> 00:17:54,203 Mr. Gibbs: Well, look -- well, I don't -- 341 00:17:54,200 --> 00:17:56,370 The Press: I mean, will you report to taxpayers: Okay, 342 00:17:56,367 --> 00:18:00,397 every six months, this is the status of our investment in GM. 343 00:18:00,400 --> 00:18:02,470 And will this be a very public, a regular thing that we're going 344 00:18:02,467 --> 00:18:04,237 to see reported on? 345 00:18:04,233 --> 00:18:08,533 Mr. Gibbs: I don't know what -- other than normal corporate communications 346 00:18:08,533 --> 00:18:12,663 that are done as -- that every company does, I don't -- I mean, 347 00:18:12,667 --> 00:18:17,497 Bill's not going to work for GM -- not that I'm aware of. 348 00:18:17,500 --> 00:18:18,700 Do you want to talk to me afterwards? 349 00:18:18,700 --> 00:18:20,330 (laughter) 350 00:18:20,333 --> 00:18:22,233 The Press: All right, how about this: Is the government's stake always 351 00:18:22,233 --> 00:18:27,163 for sale, if there is -- if it's to repay -- if -- 352 00:18:27,166 --> 00:18:28,296 Mr. Gibbs: Well, look, again -- 353 00:18:28,300 --> 00:18:29,830 The Press: -- if somebody -- if an investor comes in and comes to the 354 00:18:29,834 --> 00:18:32,064 federal government and says, hey, we know you own 60%, 355 00:18:32,066 --> 00:18:34,166 we'd like to buy some of those shares, 356 00:18:34,166 --> 00:18:38,596 and you'll turn a profit - or you'll get some of the taxpayer 357 00:18:38,600 --> 00:18:43,670 -- but right now, is the government's stake for sale? 358 00:18:43,667 --> 00:18:48,467 Mr. Gibbs: I think if the President was convinced that we had taken the 359 00:18:48,467 --> 00:18:53,367 steps to put the company on a path toward viability and that 360 00:18:53,367 --> 00:18:58,497 we could recoup for investors -- meaning the taxpayers, 361 00:18:58,500 --> 00:19:04,530 in this case -- their investment in ensuring that GM is taking -- 362 00:19:04,533 --> 00:19:07,703 continuing to take those steps, the President is eager to get 363 00:19:07,700 --> 00:19:10,930 out of any ownership stake in the auto companies. 364 00:19:10,934 --> 00:19:11,964 The Press: Not for sale right now? 365 00:19:11,967 --> 00:19:13,037 Nobody can come now? 366 00:19:13,033 --> 00:19:14,533 Mr. Gibbs: If you want to buy it, Chuck, we can talk after this. 367 00:19:14,533 --> 00:19:15,433 I don't -- 368 00:19:15,433 --> 00:19:17,163 The Press: No, but you just said, when it's viable, so obviously -- 369 00:19:17,166 --> 00:19:20,296 Mr. Gibbs: Well, look, I think right now, Chuck, 370 00:19:20,300 --> 00:19:23,230 if there were a lot of -- if today there were a lot of 371 00:19:23,233 --> 00:19:26,533 buyers, I think we'd be having a different discussion. 372 00:19:26,533 --> 00:19:27,333 The Press: Fair enough. 373 00:19:27,333 --> 00:19:30,663 Quickly on North Korea, Defense Secretary Gates seemed to hint 374 00:19:30,667 --> 00:19:33,967 that the United States would hold North Korea accountable if 375 00:19:33,967 --> 00:19:40,897 they were involved in trading nuclear materials across their border. 376 00:19:40,900 --> 00:19:42,670 Does that mean nothing is ruled out at that point; 377 00:19:42,667 --> 00:19:44,967 the United States would act unilaterally? 378 00:19:44,967 --> 00:19:50,567 Mr. Gibbs: Well, I don't want to get into, from here, 379 00:19:50,567 --> 00:19:56,297 what steps would be on the table or could be taken. 380 00:19:56,300 --> 00:20:00,930 Obviously we continue to watch what's going on in North Korea. 381 00:20:00,934 --> 00:20:07,804 Again, the many ways their actions were predicted by them 382 00:20:07,800 --> 00:20:10,770 by telling us that they were going to do a series of things 383 00:20:10,767 --> 00:20:16,367 -- and they've done those things. 384 00:20:16,367 --> 00:20:19,297 Again, I think, as Secretary Gates and others have said, 385 00:20:19,300 --> 00:20:22,000 they're continuing to take steps that isolate themselves from the 386 00:20:22,000 --> 00:20:24,130 community of nations. 387 00:20:24,133 --> 00:20:30,403 We'll continue to watch, and obviously we're concerned that 388 00:20:30,400 --> 00:20:36,200 -- as they work to develop weapons and work to develop 389 00:20:36,200 --> 00:20:42,170 delivery systems, you're always concerned about proliferation. 390 00:20:42,166 --> 00:20:42,896 That's why -- 391 00:20:42,900 --> 00:20:44,600 The Press: That's the red line in this case, 392 00:20:44,600 --> 00:20:45,800 more so than what they're doing? 393 00:20:45,800 --> 00:20:49,300 Mr. Gibbs: Well, look, I don't want to absolve the North Koreans of any 394 00:20:49,300 --> 00:20:51,200 of their actions. 395 00:20:51,200 --> 00:20:56,070 I think they're all serious violations of their 396 00:20:56,066 --> 00:20:58,396 responsibilities and responsibilities that they've 397 00:20:58,400 --> 00:20:59,430 agreed to. 398 00:20:59,433 --> 00:21:06,903 But obviously I think the greatest concern of anybody 399 00:21:06,900 --> 00:21:15,230 would be taking these weapons and delivering them to somebody to use. 400 00:21:15,233 --> 00:21:17,063 The Press: And the President agrees with the Defense Secretary that this 401 00:21:17,066 --> 00:21:20,366 isn't a crisis? 402 00:21:20,367 --> 00:21:28,597 Mr. Gibbs: I think that we agree with the Defense Secretary that even as 403 00:21:28,600 --> 00:21:32,430 the Defense Secretary himself would tell you, 404 00:21:32,433 --> 00:21:37,003 we're watching the situation closely. 405 00:21:37,000 --> 00:21:42,430 But I think as I've said from here a number of times, 406 00:21:42,433 --> 00:21:48,863 I think it does not make sense to provide North Korea 407 00:21:48,867 --> 00:21:53,667 repeatedly with attention that they desire by making a series 408 00:21:53,667 --> 00:21:58,667 of irrational international decisions. 409 00:21:58,667 --> 00:21:59,637 The Press: Follow on that, Robert? 410 00:21:59,633 --> 00:22:00,503 Mr. Gibbs: Do you want to follow? 411 00:22:00,500 --> 00:22:01,630 Go ahead. 412 00:22:01,633 --> 00:22:03,363 The Press: Just to follow, how personally involved is the President in 413 00:22:03,367 --> 00:22:04,467 this issue right now? 414 00:22:04,467 --> 00:22:06,637 Can you tell us how often he's been briefed on this? 415 00:22:06,633 --> 00:22:07,933 Mr. Gibbs: Let me check. 416 00:22:07,934 --> 00:22:11,064 I want to say they were -- let me check on this before I get 417 00:22:11,066 --> 00:22:15,066 too far -- the schedule from last week, 418 00:22:15,066 --> 00:22:17,196 the end of last week blurs. 419 00:22:17,200 --> 00:22:27,530 Obviously a series of meetings have been continuously held off 420 00:22:27,533 --> 00:22:31,633 and on for many weeks on this issue. 421 00:22:31,633 --> 00:22:35,503 And the President obviously gets regular updates. 422 00:22:35,500 --> 00:22:36,870 Jonathan. 423 00:22:36,867 --> 00:22:40,267 The Press: Robert, are you going to tell us how much the President and the 424 00:22:40,266 --> 00:22:45,566 First Lady's date night cost on Saturday night, and if not, why not? 425 00:22:45,567 --> 00:23:00,967 Mr. Gibbs: Well, Jonathan, I think spokespeople have spoken to this 426 00:23:00,967 --> 00:23:08,237 over the weekend that the President would -- had he or 427 00:23:08,233 --> 00:23:10,863 could he, based on the Secret Service, 428 00:23:10,867 --> 00:23:16,997 he would have taken the shuttle, but I would say that the costs 429 00:23:17,000 --> 00:23:21,200 are proportionate with travel for Presidents. 430 00:23:21,200 --> 00:23:25,570 And I would encourage you to look up previous coverage on 431 00:23:25,567 --> 00:23:28,897 travel costs because they're analogous. 432 00:23:28,900 --> 00:23:34,400 The Press: But is there any President or a President and First Lady who 433 00:23:34,400 --> 00:23:37,900 have taken an out-of-town date night like this, 434 00:23:37,900 --> 00:23:42,830 not connected to an official or even a political previously 435 00:23:42,834 --> 00:23:45,334 planned event? 436 00:23:45,333 --> 00:23:48,633 Mr. Gibbs: You've got probably more researchers than I do. 437 00:23:48,633 --> 00:23:49,603 Yes, sir. 438 00:23:49,600 --> 00:23:52,470 The Press: You've got a dozen or so Cabinet Secretaries and others fanning 439 00:23:52,467 --> 00:23:56,297 out tomorrow to some of these auto-producing states. 440 00:23:56,300 --> 00:24:00,700 What are their talking points, especially to auto workers who 441 00:24:00,700 --> 00:24:04,600 may not be too thrilled to sacrifice for the common good, 442 00:24:04,600 --> 00:24:06,530 as the President argued today? 443 00:24:06,533 --> 00:24:07,963 Mr. Gibbs: I'm going to have you talk to Chip. 444 00:24:07,967 --> 00:24:09,397 (laughter) 445 00:24:09,400 --> 00:24:17,870 No, look, Peter, in many ways -- and I talked about this last 446 00:24:17,867 --> 00:24:27,437 week -- 700,000 jobs have been lost in Michigan since the 447 00:24:27,433 --> 00:24:31,763 beginning of this decade, in a little more than nine years. 448 00:24:31,767 --> 00:24:37,937 The auto industry has seen a tremendous -- in a sense, 449 00:24:37,934 --> 00:24:42,864 it has seen some restructuring before we got to the point of 450 00:24:42,867 --> 00:24:47,237 some serious restructuring, even before bankruptcy. 451 00:24:47,233 --> 00:24:51,833 As I've said, GM employs about 10% of the people that it 452 00:24:51,834 --> 00:24:55,004 employed just 30 years ago. 453 00:24:55,000 --> 00:25:00,570 But I would say to you that the President -- obviously the 454 00:25:00,567 --> 00:25:03,567 Cabinet, many of the Cabinet, Ed Montgomery, 455 00:25:03,567 --> 00:25:06,137 who the President has specifically tasked to deal with 456 00:25:06,133 --> 00:25:14,633 communities and elected officials -- the President is 457 00:25:14,633 --> 00:25:19,103 asking those to go out into those communities to listen, 458 00:25:19,100 --> 00:25:23,800 to see what -- to make sure that people know what's available in 459 00:25:23,800 --> 00:25:29,700 terms of retraining; in terms of help on their behalf; 460 00:25:29,700 --> 00:25:33,270 in making sure that they have the benefits that they deserve. 461 00:25:33,266 --> 00:25:39,596 But what I would also say is, again, 462 00:25:39,600 --> 00:25:49,270 the other path that the President didn't choose is not 463 00:25:49,266 --> 00:25:54,696 some losing their jobs, but all losing their jobs. 464 00:25:54,700 --> 00:25:58,770 And the President made some tough decisions to give GM and 465 00:25:58,767 --> 00:26:02,497 its workers and the communities it supports a fighting chance to 466 00:26:02,500 --> 00:26:06,070 be the GM of old again. 467 00:26:06,066 --> 00:26:06,866 Yes, sir. 468 00:26:06,867 --> 00:26:10,467 The Press: On the GM board, will the White House be suggesting names? 469 00:26:10,467 --> 00:26:11,837 Mr. Gibbs: I can check with those guys. 470 00:26:11,834 --> 00:26:13,364 I don't know whether that's the case. 471 00:26:13,367 --> 00:26:16,367 I think sort of similar to earlier -- 472 00:26:16,367 --> 00:26:19,197 The Press: It's just a question of whether or not you'll be either 473 00:26:19,200 --> 00:26:22,430 appointing -- (inaudible) -- and you'll be voting your slate on 474 00:26:22,433 --> 00:26:24,033 the board of directors. 475 00:26:24,033 --> 00:26:26,703 Mr. Gibbs: Well, let me check in terms of whether we have 476 00:26:26,700 --> 00:26:27,600 candidates or not. 477 00:26:27,600 --> 00:26:31,930 I assume that we will be involved in finding names of 478 00:26:31,934 --> 00:26:38,334 people that we believe -- as we have done with other companies 479 00:26:38,333 --> 00:26:40,563 that have received extraordinary assistance in both this 480 00:26:40,567 --> 00:26:43,597 administration and previous administrations -- to find 481 00:26:43,600 --> 00:26:46,900 people that we think represent good management. 482 00:26:46,900 --> 00:26:47,670 The Press: Okay. 483 00:26:47,667 --> 00:26:49,337 So, just, the criteria will be good management -- will there be 484 00:26:49,333 --> 00:26:51,633 any bipartisan consideration there? 485 00:26:51,633 --> 00:26:54,533 Mr. Gibbs: Well, I think what you pick on a board of directors are people, 486 00:26:54,533 --> 00:27:00,263 regardless of their politics, who can make hard-nosed business 487 00:27:00,266 --> 00:27:03,166 decisions and turn a profit -- that's what you want a company to do. 488 00:27:03,166 --> 00:27:08,066 We're not checking voter registration; 489 00:27:08,066 --> 00:27:10,736 we're looking for good managers. 490 00:27:10,734 --> 00:27:11,804 The Press: Robert, I may have missed this. 491 00:27:11,800 --> 00:27:13,400 How many will be on the board of directors? 492 00:27:13,400 --> 00:27:15,500 What's the actual number? 493 00:27:15,500 --> 00:27:18,300 Mr. Gibbs: I don't have that number in front of me. 494 00:27:18,300 --> 00:27:19,630 The Press: Does anyone -- Jen? 495 00:27:19,633 --> 00:27:20,833 Ms. Psaki: I'll get it for you. 496 00:27:20,834 --> 00:27:21,834 The Press: Okay. 497 00:27:21,834 --> 00:27:24,134 And as I understand it, the administration, the task force, 498 00:27:24,133 --> 00:27:28,103 will name or suggest all but two -- Canada will have one and the 499 00:27:28,100 --> 00:27:31,330 UAW VEBA will have one; the rest will come from the task force. 500 00:27:31,333 --> 00:27:33,563 So the administration, through the task force, 501 00:27:33,567 --> 00:27:36,767 will play a substantial role and voice in creating this new board 502 00:27:36,767 --> 00:27:37,797 of directors. 503 00:27:37,800 --> 00:27:38,930 Mr. Gibbs: Right. 504 00:27:38,934 --> 00:27:41,004 The Press: And will the administration retain the right to remove 505 00:27:41,000 --> 00:27:42,430 members of the board of directors, 506 00:27:42,433 --> 00:27:47,303 based on GM performance as they evaluated, on behalf of the U.S. taxpayer? 507 00:27:47,300 --> 00:27:49,830 Mr. Gibbs: Yes, well let me just -- I will double check exactly. 508 00:27:49,834 --> 00:27:52,804 I just want to make sure that I have going forward. 509 00:27:52,800 --> 00:27:53,800 But I'll check on that. 510 00:27:53,800 --> 00:27:54,700 The Press: Okay. 511 00:27:54,700 --> 00:27:57,230 Now, in the -- as this bankruptcy process was put 512 00:27:57,233 --> 00:28:01,603 together, the administration was in favor of getting a 513 00:28:01,600 --> 00:28:05,400 declaration from General Motors that it will not import for sale 514 00:28:05,400 --> 00:28:10,470 in the U.S. market automobiles manufactured in China, correct? 515 00:28:10,467 --> 00:28:12,037 That was part of the deal, and I just want to make sure the task 516 00:28:12,033 --> 00:28:14,163 force was interested in -- 517 00:28:14,166 --> 00:28:15,936 Mr. Gibbs: I don't know about that aspect of the deal, 518 00:28:15,934 --> 00:28:18,864 so let me -- let us check on that. 519 00:28:18,867 --> 00:28:23,597 The Press: Was the task force in favor of General Motors committing to the 520 00:28:23,600 --> 00:28:26,530 production of a new, small car for the U.S. market to be 521 00:28:26,533 --> 00:28:28,303 produced here in the United States? 522 00:28:28,300 --> 00:28:30,100 Mr. Gibbs: Look, Major, I don't have that level of detail on the deal, 523 00:28:30,100 --> 00:28:31,530 so let me -- 524 00:28:31,533 --> 00:28:33,503 The Press: Well, these were all part of the details that were announced last 525 00:28:33,500 --> 00:28:35,100 night, they were part of the fact sheet. 526 00:28:35,100 --> 00:28:38,070 It just seems to me that those are significant decisions made 527 00:28:38,066 --> 00:28:40,566 by this new GM. 528 00:28:40,567 --> 00:28:42,967 And it would seem the task force would have had some voice in that. 529 00:28:42,967 --> 00:28:44,797 Mr. Gibbs: Well, let me take a look more closely. 530 00:28:44,800 --> 00:28:46,700 The Press: And the bottom line of this question is, 531 00:28:46,700 --> 00:28:50,800 maybe it won't have day-to-day operational supervision going 532 00:28:50,800 --> 00:28:53,570 forward, but clearly the task force, it appears, 533 00:28:53,567 --> 00:28:55,867 was involved in some very significant General Motors 534 00:28:55,867 --> 00:28:59,867 decisions relating to the U.S. market: a product line that 535 00:28:59,867 --> 00:29:02,737 doesn't exist now, that it's committed to creating -- 536 00:29:02,734 --> 00:29:04,534 I just want to make sure that I understand correctly that those 537 00:29:04,533 --> 00:29:06,663 were task force involved. 538 00:29:06,667 --> 00:29:12,867 Mr. Gibbs: Look, I don't think it took a -- I don't think it takes a task 539 00:29:12,867 --> 00:29:16,867 force to understand that the company has got to make cars 540 00:29:16,867 --> 00:29:19,167 that are going to do better fuel-efficiency-wise -- 541 00:29:19,166 --> 00:29:21,136 The Press: No, I know, but the President in his remarks said that there will 542 00:29:21,133 --> 00:29:23,703 be the large amount of U.S. production of vehicles. 543 00:29:23,700 --> 00:29:26,730 The only way you get there is by General Motors committing to 544 00:29:26,734 --> 00:29:29,204 make this new small car in the U.S. market. 545 00:29:29,200 --> 00:29:30,230 Mr. Gibbs: Well, I think General Motors -- 546 00:29:30,233 --> 00:29:31,563 The Press: And it seems to me that's an outgrowth of these talks -- 547 00:29:31,567 --> 00:29:34,337 Mr. Gibbs: Well, I think General Motors put out a press release Friday 548 00:29:34,333 --> 00:29:37,103 denoting that -- from what I saw, 549 00:29:37,100 --> 00:29:41,530 denoting that a factory would, at some location in the United 550 00:29:41,533 --> 00:29:45,433 States, be chosen for that production. 551 00:29:45,433 --> 00:29:48,503 But past that, I will check on that with Jen. 552 00:29:48,500 --> 00:29:53,970 The Press: Does the President expect GM to be profitable by the end of his first term? 553 00:29:53,967 --> 00:29:59,767 Mr. Gibbs: You know, again, I think that -- I think there -- I think it 554 00:29:59,767 --> 00:30:02,767 would be unwise for me to speculate. 555 00:30:02,767 --> 00:30:08,037 I think the President believes a number of factors are important 556 00:30:08,033 --> 00:30:10,133 getting in place that good management, 557 00:30:10,133 --> 00:30:13,133 ensuring that we have a strong and stable economy. 558 00:30:13,133 --> 00:30:16,763 Obviously, the biggest determining factor in 559 00:30:16,767 --> 00:30:20,637 profitability is going to be the number of auto sales. 560 00:30:20,633 --> 00:30:25,463 So ensuring that we have an economy that is strong and 561 00:30:25,467 --> 00:30:30,037 robust where people are buying cars is going to be the largest 562 00:30:30,033 --> 00:30:33,103 determinant as to profitability, and how quickly we can get out 563 00:30:33,100 --> 00:30:36,770 of the business of being involved in auto companies. 564 00:30:36,767 --> 00:30:37,767 Yes, sir. 565 00:30:37,767 --> 00:30:39,497 The Press: Yes, Secretary Geithner is in China, 566 00:30:39,500 --> 00:30:43,630 and he's telling audiences that the United States plans to 567 00:30:43,633 --> 00:30:45,633 reduce its debt. 568 00:30:45,633 --> 00:30:48,333 Is the administration concerned that the Chinese demand for U.S. 569 00:30:48,333 --> 00:30:50,733 debt is declining? 570 00:30:50,734 --> 00:30:56,534 Mr. Gibbs: No, again, I think we've said up here many times that we have the 571 00:30:56,533 --> 00:30:59,933 deepest credit markets in the world. 572 00:30:59,934 --> 00:31:03,434 Obviously the President has long been concerned about fiscal 573 00:31:03,433 --> 00:31:09,503 responsibility, but believes that -- does not believe -- is 574 00:31:09,500 --> 00:31:11,670 not concerned about that right now, no. 575 00:31:11,667 --> 00:31:13,537 The Press: Just a quick follow. 576 00:31:13,533 --> 00:31:16,363 In making decisions about when to start reducing the debt, 577 00:31:16,367 --> 00:31:19,037 particularly out-years of the budget, 578 00:31:19,033 --> 00:31:20,903 what is the White House looking for, 579 00:31:20,900 --> 00:31:24,930 in terms of economic indicators or legislative benchmarks that 580 00:31:24,934 --> 00:31:27,504 are going to prompt you all to start revisiting some of these 581 00:31:27,500 --> 00:31:29,800 numbers and bringing them down? 582 00:31:29,800 --> 00:31:33,430 Mr. Gibbs: Give me some -- give me examples of what you're -- 583 00:31:33,433 --> 00:31:35,763 The Press: For example, the period we're in now, obviously, 584 00:31:35,767 --> 00:31:38,037 there's a lot of almost emergency spending taking place 585 00:31:38,033 --> 00:31:40,303 to fill in demand. 586 00:31:40,300 --> 00:31:46,770 Once that is finished, I imagine if you're serious about reducing 587 00:31:46,767 --> 00:31:50,597 out-year budget numbers, you're going to revisit the budget and 588 00:31:50,600 --> 00:31:51,670 those figures. 589 00:31:51,667 --> 00:31:53,167 What will prompt you to do that? 590 00:31:53,166 --> 00:31:56,036 When will you know it's time to do that, it's safe to do that? 591 00:31:56,033 --> 00:31:57,003 Mr. Gibbs: Economically, you mean? 592 00:31:57,000 --> 00:31:58,070 The Press: Exactly. 593 00:31:58,066 --> 00:32:02,696 Mr. Gibbs: Well, look, I think this is obviously an ongoing process. 594 00:32:02,700 --> 00:32:08,700 I think it's hard to pick in the future some mythical date certain. 595 00:32:08,700 --> 00:32:12,230 But I think you've heard the President discuss on a number of 596 00:32:12,233 --> 00:32:17,863 occasions the reason why we thought a recovery and 597 00:32:17,867 --> 00:32:23,167 reinvestment plan was important was to get money into the hands 598 00:32:23,166 --> 00:32:27,296 of American citizens, to get money to states that were 599 00:32:27,300 --> 00:32:30,770 struggling, to ensure that those that were displaced and losing 600 00:32:30,767 --> 00:32:35,067 their job had the type of benefits that they deserved, 601 00:32:35,066 --> 00:32:40,196 and that one of the ways to get control ultimately of our 602 00:32:40,200 --> 00:32:43,400 deficit is to get our economy growing again. 603 00:32:43,400 --> 00:32:49,030 So without having sort of a firm graph of numbers, 604 00:32:49,033 --> 00:32:54,663 obviously we need to see some concrete economic growth and job 605 00:32:54,667 --> 00:32:56,937 growth as equally as important. 606 00:32:56,934 --> 00:32:59,204 The Press: When I mentioned legislation, I meant health care reform and 607 00:32:59,200 --> 00:33:01,770 energy reform, two things that you're hoping -- that you say 608 00:33:01,767 --> 00:33:04,437 will lead to long-term savings. 609 00:33:04,433 --> 00:33:06,503 Once those are passed, will you have a better sense? 610 00:33:06,500 --> 00:33:09,470 Mr. Gibbs: Well, I think, again, we've talked about it on a number of 611 00:33:09,467 --> 00:33:13,267 occasions and I would reemphasize again, 612 00:33:13,266 --> 00:33:21,396 getting our health care costs under control, 613 00:33:21,400 --> 00:33:26,730 making the system dramatically more efficient over the long 614 00:33:26,734 --> 00:33:33,364 term will provide a huge change in our budgetary outlook as we 615 00:33:33,367 --> 00:33:36,797 struggle with rising health care costs. 616 00:33:36,800 --> 00:33:42,070 I think the same is true as we create the jobs of the future to 617 00:33:42,066 --> 00:33:46,996 deal with energy independence, so obviously short term and then 618 00:33:47,000 --> 00:33:49,400 I'd say probably medium to long term, 619 00:33:49,400 --> 00:33:53,500 creating that strong foundation in order to get the economy 620 00:33:53,500 --> 00:33:54,370 going again. 621 00:33:54,367 --> 00:33:55,237 Mark. 622 00:33:55,233 --> 00:33:58,633 The Press: Robert, oil prices hit $68 a barrel today -- very 623 00:33:58,633 --> 00:34:00,803 substantially up in recent weeks. 624 00:34:00,800 --> 00:34:02,100 When the President goes to Saudi Arabia, 625 00:34:02,100 --> 00:34:04,200 is going to talk to King Abdullah about that? 626 00:34:04,200 --> 00:34:06,000 Is he going to express concern? 627 00:34:06,000 --> 00:34:10,430 Mr. Gibbs: Well, we'll have a readout exactly of what's done and said 628 00:34:10,433 --> 00:34:13,303 in the meeting, but as I said last week I assume that's 629 00:34:13,300 --> 00:34:18,030 something that will indeed be on the docket next -- later this 630 00:34:18,033 --> 00:34:20,233 week -- sorry, I'm getting my weeks mixed up. 631 00:34:20,233 --> 00:34:21,603 The Press: Robert, one question -- 632 00:34:21,600 --> 00:34:22,670 Mr. Gibbs: Hold on a second. 633 00:34:22,667 --> 00:34:24,167 Hold on -- 634 00:34:24,166 --> 00:34:25,366 The Press: -- you will want to answer, I'm sure. 635 00:34:25,367 --> 00:34:28,437 Mr. Gibbs: I appreciate the certainty with which you said that. 636 00:34:28,433 --> 00:34:29,033 (laughter) 637 00:34:29,033 --> 00:34:30,903 The Press: I also wanted to ask about the Cairo stop -- since we talked to 638 00:34:30,900 --> 00:34:34,330 you last week about that, the schedule is more firm. 639 00:34:34,333 --> 00:34:36,463 Is the President going to be meeting with any dissidents? 640 00:34:36,467 --> 00:34:39,397 Mr. Gibbs: We'll have more on that as we get closer. 641 00:34:39,400 --> 00:34:40,530 Yes, ma'am. 642 00:34:40,533 --> 00:34:43,333 The Press: Robert, you have gone out of your way to reassure people that 643 00:34:43,333 --> 00:34:45,563 the government isn't going to be micromanaging and they're not 644 00:34:45,567 --> 00:34:47,137 going to be picking the paint colors -- 645 00:34:47,133 --> 00:34:49,063 Mr. Gibbs: Many people have given me the opportunity to do that. 646 00:34:49,066 --> 00:34:50,036 The Press: Right. 647 00:34:50,033 --> 00:34:52,503 But, I mean, you could look at it -- come at it in a completely 648 00:34:52,500 --> 00:34:55,130 different way, which is when you own this much of a company and 649 00:34:55,133 --> 00:34:56,503 you are representing the taxpayers, 650 00:34:56,500 --> 00:34:59,900 you have a fiduciary responsibility to make sure that 651 00:34:59,900 --> 00:35:02,770 this company turns a profit as soon as possible, 652 00:35:02,767 --> 00:35:04,767 and that might behoove you to get as involved as you need to 653 00:35:04,767 --> 00:35:07,137 be to make sure that happens. 654 00:35:07,133 --> 00:35:13,133 So I'm wondering if you can imagine times when the goal of 655 00:35:13,133 --> 00:35:16,933 making GM profitable as fast as possible conflicts with the goal 656 00:35:16,934 --> 00:35:20,664 of it being the kind of car company that you might want it to be. 657 00:35:20,667 --> 00:35:23,997 I mean, what if it turns out that they can sell more big 658 00:35:24,000 --> 00:35:28,200 gas-guzzlers, at least in the near term, than little -- 659 00:35:28,200 --> 00:35:31,700 Mr. Gibbs: Well, I see no present evidence that would make that 660 00:35:31,700 --> 00:35:32,630 theory plausible. 661 00:35:32,633 --> 00:35:34,363 The Press: Well, once they're restructured and get rid of all the kind of 662 00:35:34,367 --> 00:35:36,737 dead weight and they're leaner and meaner, I mean, 663 00:35:36,734 --> 00:35:38,204 it's possible that some of the profit -- 664 00:35:38,200 --> 00:35:39,670 Mr. Gibbs: The company, not the cars. 665 00:35:39,667 --> 00:35:40,867 The Press: Yes, the company, that's what I'm talking about. 666 00:35:40,867 --> 00:35:42,367 (laughter) 667 00:35:42,367 --> 00:35:45,667 But, I mean, there is -- when you're the owner of a company, 668 00:35:45,667 --> 00:35:49,967 making a profit for the taxpayers and maintaining a 669 00:35:49,967 --> 00:35:54,097 "viable" U.S. auto industry sometimes will come into conflict. 670 00:35:54,100 --> 00:35:58,770 Mr. Gibbs: I actually don't know that that's the case, given, 671 00:35:58,767 --> 00:36:08,867 again -- I think if you take a look at auto sales for the past 672 00:36:08,867 --> 00:36:12,697 many, many months, go back a year or two, 673 00:36:12,700 --> 00:36:15,270 I don't think you would say, we didn't end up in this place 674 00:36:15,266 --> 00:36:18,296 because these companies were doing great and we wanted them 675 00:36:18,300 --> 00:36:20,200 to do greater. 676 00:36:20,200 --> 00:36:25,630 I think if Hummer was a brand that was turning a big profit it 677 00:36:25,633 --> 00:36:32,003 wouldn't be for sale for anybody that has $5 in loose change to buy it. 678 00:36:32,000 --> 00:36:33,600 The Press: So you're just saying those two things right now are one 679 00:36:33,600 --> 00:36:34,570 and the same. 680 00:36:34,567 --> 00:36:35,767 But to follow up on Chuck's question, 681 00:36:35,767 --> 00:36:41,537 if somebody came in next year to buy out your share, 682 00:36:41,533 --> 00:36:43,263 returning a profit to the taxpayers, 683 00:36:43,266 --> 00:36:46,536 and then proceeded to kind of dismantle GM -- still would have 684 00:36:46,533 --> 00:36:49,833 given a profit to the taxpayers, but the end result would have 685 00:36:49,834 --> 00:36:54,834 been a non-viable U.S. auto industry, I mean, those are 686 00:36:54,834 --> 00:36:56,064 choices that you're going to have to make -- 687 00:36:56,066 --> 00:36:57,596 Mr. Gibbs: Let me just address this for a second, Mara, 688 00:36:57,600 --> 00:37:01,530 because the scenario that you're setting up is, 689 00:37:01,533 --> 00:37:06,303 somebody would want to come in and pay markedly more than what 690 00:37:06,300 --> 00:37:10,570 the stock price is once we purchase it; 691 00:37:10,567 --> 00:37:13,367 they want to give us more than that, 692 00:37:13,367 --> 00:37:17,797 establishing that difference as being the taxpayer profit; 693 00:37:17,800 --> 00:37:23,470 and assuming that they're making a rational decision about how 694 00:37:23,467 --> 00:37:27,297 much to pay for each share of that stock, 695 00:37:27,300 --> 00:37:30,130 they're then going to make business decisions that are in 696 00:37:30,133 --> 00:37:33,863 the opposite of that in order to make the company less viable? 697 00:37:33,867 --> 00:37:35,037 The Press: No, no, I'm saying sometimes -- 698 00:37:35,033 --> 00:37:36,263 Mr. Gibbs: But I think that if you actually -- 699 00:37:36,266 --> 00:37:37,996 The Press: -- the most profitable thing you can do is sell off the parts of 700 00:37:38,000 --> 00:37:39,230 a company, that's all. 701 00:37:39,233 --> 00:37:40,163 Mr. Gibbs: But Mara -- 702 00:37:40,166 --> 00:37:41,336 The Press: Part of what you're doing you're doing now, in fact. 703 00:37:41,333 --> 00:37:43,163 Mr. Gibbs: -- if you look at the scenario outlined by your question, 704 00:37:43,166 --> 00:37:45,296 I think in many ways the scenario I just outlined is 705 00:37:45,300 --> 00:37:46,870 exactly what you outlined. 706 00:37:46,867 --> 00:37:51,297 I don't know of anybody that's going to come pay twice the 707 00:37:51,300 --> 00:37:55,100 share price and go back to making the decisions that got 708 00:37:55,100 --> 00:37:57,370 the company into $172 billion in debt. 709 00:37:57,367 --> 00:37:58,497 The Press: Well, of course not. 710 00:37:58,500 --> 00:38:00,700 Mr. Gibbs: Then I guess I'm straining to understand your scenario. 711 00:38:00,700 --> 00:38:02,530 The Press: I guess what I'm asking you is there any acknowledgment that 712 00:38:02,533 --> 00:38:07,863 sometimes there can be a conflict between representing 713 00:38:07,867 --> 00:38:11,467 the taxpayers as their investor, which is what the U.S. 714 00:38:11,467 --> 00:38:16,367 government is right now, and doing things that you would like 715 00:38:16,367 --> 00:38:20,467 the U.S. auto industry to do or be? 716 00:38:20,467 --> 00:38:21,797 You don't see any -- 717 00:38:21,800 --> 00:38:23,100 Mr. Gibbs: -- example. 718 00:38:23,100 --> 00:38:24,830 Sure, if somebody can -- 719 00:38:24,834 --> 00:38:27,834 The Press: If Michael Moore came out this morning and he said, look -- 720 00:38:27,834 --> 00:38:28,804 Mr. Gibbs: I'm sorry, what? 721 00:38:28,800 --> 00:38:31,530 The Press: If Michael Moore, you know, "Roger Rabbit" or whatever -- 722 00:38:31,533 --> 00:38:33,233 (laughter) 723 00:38:33,233 --> 00:38:35,033 Mr. Gibbs: Not exactly, but yes -- 724 00:38:35,033 --> 00:38:39,903 The Press: -- came out and said, look, if you -- if it is in the United 725 00:38:39,900 --> 00:38:44,000 States' interest to retool these plants so that we make 726 00:38:44,000 --> 00:38:47,400 high-speed railroads, railroad cars, 727 00:38:47,400 --> 00:38:51,600 that we make public transportation automobiles that 728 00:38:51,600 --> 00:38:55,730 will carry more people and use less fuel, et cetera, 729 00:38:55,734 --> 00:38:58,604 then we should retool the GM plants to do that. 730 00:38:58,600 --> 00:39:02,570 Now that's sort of the opposite of what her question is, 731 00:39:02,567 --> 00:39:05,367 which is, is there a way to make this so that it actually not 732 00:39:05,367 --> 00:39:09,067 only helps the taxpayer become profitable but also helps our 733 00:39:09,066 --> 00:39:12,166 long-term goals of becoming more green, 734 00:39:12,166 --> 00:39:14,736 and would we have an interest in doing that? 735 00:39:14,734 --> 00:39:21,364 Mr. Gibbs: Well, again, as I said, there are traditional roles that 736 00:39:21,367 --> 00:39:24,067 Congress and the executive branch have played regarding, 737 00:39:24,066 --> 00:39:26,066 for instance, as I've said before, 738 00:39:26,066 --> 00:39:33,536 corporate average fuel economy; ensuring that there is for the 739 00:39:33,533 --> 00:39:39,303 average of a fleet some standard by which it should meet given 740 00:39:39,300 --> 00:39:43,430 the mix -- given an appropriate mix of different vehicles. 741 00:39:43,433 --> 00:39:49,133 But, again, going back to Mara's scenario, I don't -- again, 742 00:39:49,133 --> 00:39:51,103 I just don't understand a scenario where somebody is going 743 00:39:51,100 --> 00:39:53,770 to come in and pay more than the company is -- more than what we 744 00:39:53,767 --> 00:39:59,937 paid for the company in order to make wildly disparate decisions 745 00:39:59,934 --> 00:40:05,104 that in some ways are what got the company to where we were, 746 00:40:05,100 --> 00:40:06,400 say, last night. 747 00:40:06,400 --> 00:40:08,970 The Press: You're assuming that entity might want to run it just the 748 00:40:08,967 --> 00:40:12,367 way the old, bad managers did. 749 00:40:12,367 --> 00:40:17,597 There's a lot of ways to dispose of assets -- meaning, 750 00:40:17,600 --> 00:40:19,230 you want to keep a viable U.S. market -- 751 00:40:19,233 --> 00:40:20,903 Mr. Gibbs: What you're saying is -- wait, so let me understand this -- 752 00:40:20,900 --> 00:40:22,100 The Press: -- industry going no matter what. 753 00:40:22,100 --> 00:40:24,430 Mr. Gibbs: So what you're saying is, you think -- you're saying somebody 754 00:40:24,433 --> 00:40:27,063 is going to come in and pay, say, twice the -- hold on, 755 00:40:27,066 --> 00:40:28,536 let me do this scenario -- hold on, 756 00:40:28,533 --> 00:40:30,863 let me see if I'm inferring what you're saying -- somebody is 757 00:40:30,867 --> 00:40:33,497 going to pay twice the share price but ultimately decide that 758 00:40:33,500 --> 00:40:41,730 selling the factory, basically, covering simply your fixed costs 759 00:40:41,734 --> 00:40:42,164 -- well, I mean -- 760 00:40:42,166 --> 00:40:43,136 The Press: Aren't you doing a little bit of that -- 761 00:40:43,133 --> 00:40:44,933 Mr. Gibbs: Well, I mean, there is a fairly -- 762 00:40:44,934 --> 00:40:46,304 The Press: -- in this kind of structured bankruptcy -- isn't that 763 00:40:46,300 --> 00:40:47,300 what it is? 764 00:40:47,300 --> 00:40:48,300 Mr. Gibbs: Well, I will tell you this. 765 00:40:48,300 --> 00:40:50,270 There's a -- I mean, there's an economic theory -- I took a few 766 00:40:50,266 --> 00:40:51,796 of these classes that -- 767 00:40:51,800 --> 00:40:53,000 (laughter) 768 00:40:53,000 --> 00:40:54,130 -- no, no, no, I don't mean -- I did, 769 00:40:54,133 --> 00:40:58,003 I don't mean that in a sarcastic way -- 770 00:40:58,000 --> 00:40:59,130 The Press: You had to clarify that -- 771 00:40:59,133 --> 00:40:59,903 Mr. Gibbs: Yes, exactly. 772 00:40:59,900 --> 00:41:02,000 (laughter) 773 00:41:02,000 --> 00:41:04,230 I mean, I think there are not many people, 774 00:41:04,233 --> 00:41:06,263 and the President -- the President made a conscious 775 00:41:06,266 --> 00:41:11,896 decision about what path to take, right? 776 00:41:11,900 --> 00:41:18,900 But if the investment far exceeded the assets, 777 00:41:18,900 --> 00:41:25,700 the fixed costs, that would be a terribly irrational business 778 00:41:25,700 --> 00:41:28,800 decision, and I think you can assume rightly that the 779 00:41:28,800 --> 00:41:32,330 President and the task force made decisions based on what 780 00:41:32,333 --> 00:41:35,133 they thought the company could become. 781 00:41:35,133 --> 00:41:39,763 Look, guys, this isn't an exercise in perpetuating a 782 00:41:39,767 --> 00:41:43,797 company -- to perpetuate a company just for that sake. 783 00:41:43,800 --> 00:41:46,530 That doesn't make any sense, and that wouldn't be rational for 784 00:41:46,533 --> 00:41:48,333 taxpayer investment. 785 00:41:48,333 --> 00:41:51,303 That's why I think -- that's why people are making those decisions. 786 00:41:51,300 --> 00:41:52,270 Yes, sir. 787 00:41:52,266 --> 00:41:56,496 The Press: Robert, related to that, you're not setting up any benchmarks 788 00:41:56,500 --> 00:41:58,970 for the investment, is that correct? 789 00:41:58,967 --> 00:42:00,667 And if so, why not? 790 00:42:00,667 --> 00:42:01,637 Mr. Gibbs: I'm sorry, say that again. 791 00:42:01,633 --> 00:42:05,133 The Press: No benchmarks for GM, for the company -- steps towards the 792 00:42:05,133 --> 00:42:07,563 road to viability that you'd like to see accomplished, 793 00:42:07,567 --> 00:42:09,497 year one, year two -- 794 00:42:09,500 --> 00:42:10,700 Mr. Gibbs: Well, look again -- 795 00:42:10,700 --> 00:42:12,530 The Press: You're basically -- playing off what people said, 796 00:42:12,533 --> 00:42:16,963 a way to evaluate whether this is working. 797 00:42:16,967 --> 00:42:20,037 Mr. Gibbs: Well, whether or not they've handed me how they would 798 00:42:20,033 --> 00:42:24,233 enumerate the evaluation, David, I think the notion that we're 799 00:42:24,233 --> 00:42:27,433 somehow writing them a check and then walking away and hoping to 800 00:42:27,433 --> 00:42:29,863 come back in two years and find a company that's in different 801 00:42:29,867 --> 00:42:34,067 shape -- again, I don't think we would be involved in core 802 00:42:34,066 --> 00:42:36,666 corporate governance issues like a board of directors if we 803 00:42:36,667 --> 00:42:39,897 didn't have some concern about viability. 804 00:42:39,900 --> 00:42:43,500 And as I've said, as the President has said -- look, 805 00:42:43,500 --> 00:42:45,800 guys, he didn't -- if he wanted to run an auto company, 806 00:42:45,800 --> 00:42:47,600 he wouldn't have run for President. 807 00:42:47,600 --> 00:42:48,870 The Press: There's got to be a trigger here. 808 00:42:48,867 --> 00:42:50,897 I mean, I guess that's what I think -- there's been six 809 00:42:50,900 --> 00:42:52,670 versions of this question. 810 00:42:52,667 --> 00:42:55,567 What is the trigger point at which you say, okay, 811 00:42:55,567 --> 00:42:59,097 is it the market that will evaluate the price of the 812 00:42:59,100 --> 00:43:01,370 government -- you know, the share price on the sales? 813 00:43:01,367 --> 00:43:02,197 The taxpayers -- 814 00:43:02,200 --> 00:43:03,500 Mr. Gibbs: Well, look, that's the stock market, yes. 815 00:43:03,500 --> 00:43:04,630 The Press: Right, that's what I'm saying. 816 00:43:04,633 --> 00:43:06,433 If the market shows that the taxpayers can get their money 817 00:43:06,433 --> 00:43:10,733 back, does that mean, okay, we've got to get -- is that the trigger? 818 00:43:10,734 --> 00:43:13,404 Mr. Gibbs: If there's a good -- well, if there's a good deal, 819 00:43:13,400 --> 00:43:16,230 I can assure you we don't want to -- 820 00:43:16,233 --> 00:43:17,963 The Press: Should we watch the stock price -- that should be 821 00:43:17,967 --> 00:43:19,367 the evaluating -- 822 00:43:19,367 --> 00:43:20,467 The Press: I'm not on the Dow anymore. 823 00:43:20,467 --> 00:43:21,797 (laughter) 824 00:43:21,800 --> 00:43:25,100 Mr. Gibbs: I would note that for all the questions I've gotten about our 825 00:43:25,100 --> 00:43:27,930 actions in the market, I would note the market seems to be 826 00:43:27,934 --> 00:43:29,064 doing seemingly well today. 827 00:43:29,066 --> 00:43:30,436 The Press: I mean, is that the trigger? 828 00:43:30,433 --> 00:43:31,803 That's what we should watch? 829 00:43:31,800 --> 00:43:37,670 Mr. Gibbs: Well, look, I think we desire to get out of the auto industry as 830 00:43:37,667 --> 00:43:41,767 quickly as we can and do it in a way that protects taxpayers. 831 00:43:41,767 --> 00:43:46,937 I can't -- Chuck, I can't sit here and tell you that when -- I 832 00:43:46,934 --> 00:43:50,964 think, first of all, we're going through a 60- to 90-day bankruptcy. 833 00:43:50,967 --> 00:43:54,467 We've got to figure out -- and a judge is going to do that -- the 834 00:43:54,467 --> 00:43:58,937 size, the entity, the scope, and the stock price that you're 835 00:43:58,934 --> 00:44:01,734 going to watch, what that's going to do when it spits out 836 00:44:01,734 --> 00:44:02,804 the other side. 837 00:44:02,800 --> 00:44:05,370 So I think it would be disingenuous for me to speculate 838 00:44:05,367 --> 00:44:11,897 or stand up here and say, when it hits 375, then we're out. 839 00:44:11,900 --> 00:44:15,570 But I can assure you, again, the President is not looking to -- 840 00:44:15,567 --> 00:44:16,967 The Press: Put the sell order on E-Trade. 841 00:44:16,967 --> 00:44:18,537 Mr. Gibbs: Yes, exactly. 842 00:44:18,533 --> 00:44:19,863 Check whitehouse.gov. 843 00:44:19,867 --> 00:44:23,697 The Press: But I still think the question is what procedures do you 844 00:44:23,700 --> 00:44:26,500 anticipate having in place at the end of the 60-to-90-day 845 00:44:26,500 --> 00:44:30,300 period by which the Auto Task Force or anybody else will be 846 00:44:30,300 --> 00:44:33,100 monitoring, whether or not intervening, 847 00:44:33,100 --> 00:44:35,930 but monitoring what's happening and deciding if things are going 848 00:44:35,934 --> 00:44:38,434 in a good or not so good direction. 849 00:44:38,433 --> 00:44:41,433 Mr. Gibbs: Well, look, I think, again, part of that is the purview -- will 850 00:44:41,433 --> 00:44:45,203 be the purview of what we believe will be a strong board 851 00:44:45,200 --> 00:44:50,600 of directors that are making decisions to make this company profitable. 852 00:44:50,600 --> 00:44:52,230 That's the basic -- Yes, sir. 853 00:44:52,233 --> 00:44:56,933 The Press: Robert, will the government exercise its authority to remove 854 00:44:56,934 --> 00:45:03,364 Fritz Henderson as CEO either now or after the bankruptcy exit? 855 00:45:03,367 --> 00:45:06,697 And what's the realistic likelihood that the government 856 00:45:06,700 --> 00:45:09,500 will get much of the $50 billion back? 857 00:45:09,500 --> 00:45:12,400 There were some officials who said last week that of the first 858 00:45:12,400 --> 00:45:15,500 $20 billion that the Bush administration gave, 859 00:45:15,500 --> 00:45:17,800 it's not likely to get much of that back. 860 00:45:17,800 --> 00:45:22,900 Mr. Gibbs: Well, again, I think it's, at the beginning of this process, 861 00:45:22,900 --> 00:45:30,300 not based on market implications and such, 862 00:45:30,300 --> 00:45:34,170 I think it's important that I not speculate precisely on what 863 00:45:34,166 --> 00:45:42,266 that is, again, simply to say that the investment that was 864 00:45:42,266 --> 00:45:50,666 made -- it splits out roughly -- some is secured debt, 865 00:45:50,667 --> 00:45:55,867 but the bulk of this is equity, because you don't want to take a 866 00:45:55,867 --> 00:45:59,597 company that's just come out of massive debt and saddle it with 867 00:45:59,600 --> 00:46:03,030 massive debt under a different name. 868 00:46:03,033 --> 00:46:08,703 So that's one of the reasons that we exercised the equity 869 00:46:08,700 --> 00:46:10,200 option in this case. 870 00:46:10,200 --> 00:46:14,100 Lester, I'm just going to -- here we go. 871 00:46:14,100 --> 00:46:18,370 The Press: On Thursday, Buckingham Palace announced: "Neither the Queen, 872 00:46:18,367 --> 00:46:21,767 nor any other members of the Royal Family will be attending 873 00:46:21,767 --> 00:46:24,897 the D-Day commemoration on June 6, 874 00:46:24,900 --> 00:46:28,570 as we have not yet received an official invitation to any of 875 00:46:28,567 --> 00:46:29,637 these events." 876 00:46:29,633 --> 00:46:33,163 And my question: Since Queen Elizabeth is the only living 877 00:46:33,166 --> 00:46:36,866 head of state who served in the armed forces during World War 878 00:46:36,867 --> 00:46:41,497 II, President Obama believes she should surely be officially 879 00:46:41,500 --> 00:46:42,970 invited, doesn't he? 880 00:46:42,967 --> 00:46:44,067 Mr. Gibbs: He does. 881 00:46:44,066 --> 00:46:51,366 And we are working with those involved to see if we can make 882 00:46:51,367 --> 00:46:52,367 that happen. 883 00:46:52,367 --> 00:46:53,497 The Press: Wonderful. 884 00:46:53,500 --> 00:46:55,230 (laughter) 885 00:46:55,233 --> 00:46:57,203 Mr. Gibbs: Lester, will you please pass that directly to the 886 00:46:57,200 --> 00:46:58,430 Queen for me? 887 00:46:58,433 --> 00:46:59,203 Thank you. 888 00:46:59,200 --> 00:47:00,200 (laughter)