anderson does gmac own part of the new gm board is gm's still own part of gmac financing? >> tm will own the shares in a gmac. we will own approximately 9.9% wants the other hampshires are in a trust because of our agreement we agreed we would not sell down our interest. >> mr. chairman i just want to pick up, but gmac part. but i have to find it. i have talked to a lot of folks in my district. one of their complaints with gmac, i had a dealers tell me after gmac got the government dollars the immediately raised the interest rate by 6%. they made the dealer paid $10,000 just to be able to stay on, nonrefundable. he had been with them 27 years, the last seven months they changed his contract 14 times always with the threat of curtail and micromanaging and manipulate the floor stock. they told him he had too many cars so he sent them to auction and then they said they had not had an inspection and the card numbers were inaccurate. he said i did what you ask and they said you should call us to tell us that he said it would be eliminated to have a congress man in the room. thi

one of their complaints with gmac, i had a dealers tell me after gmac got the government dollars the immediately raised the interest rate by 6%. they made the dealer paid $10,000 just to be able to stay on, nonrefundable. he had been with them 27 years, the last seven months they changed his contract 14 times always with the threat of curtail and micromanaging and manipulate the floor stock. they told him he had too many cars so he sent them to auction and then they said they had not had an inspection and the card numbers were inaccurate. he said i did what you ask and they said you should call us to tell us that he said it would be eliminated to have a congress man in the room. this is not unique and but what terms of that side of the issue. let me go to mr. thomas. you have now had a brief opportunity, is this the first time you have seen the criteria upon which the decision was made in your wind down agreement? >> i have seen it one other time the last few weeks. i have seen things in this paper regarding the wind down commitment and it appears i made the wrong decision it says in

today, they have the right to voluntarily terminate their agreement, return the vehicles to gmac and it's our responsibility to redistribute the vehicles with gmac, a responsibility that was confirmed on monday through the bankruptcy court. >> when i ask either of you, mr. press, mr. henderson, the industry fell behind as overseas companies developed vehicles that were more fuel efficient than those made in detroit. oil prices inevitably rose, you were stuck with trucks and suvs that few people wanted, and now president obama has proposed strict new efficiency standards. how can you assure us with a degree of reasonableness that you will be able to make these more fuel efficient cars and trucks to help your companies return to profitability when all of these years, there was no credibility given to your assessment of the marketplace or your engineering to beat the competition? >> senator, in our history, we have never missed a cafe standard or fuel economy standard in the u.s. or -- >> i don't know what kind of fight there was here about cafe standards. >> i understand. secondly, jus

, a dealer can return the cars to gmac and we would redistribute the cars with no cost to the dealers. >> thank you. my time has expired. . . >> without using taxpayer money, finding a way to reduce inventory and to do with in a manner where it did not cost the taxpayers, which we did the redistribution program. that was implemented and we did redistribute 100% of the vehicles that we are happy to say that is complete. >> that had to happen very late last night because as 7:00 last night we had phone calls from dealers say we have cars and they will not take them back. >> we have made that comment and have written notices, it is in the newspaper bree will continue to provide dealers information. we have reduced to the cars to other dealers physically they may not have left the law because we could not begin until yesterday when the new company formed but we are at it. anybody that has it please give them my name i would be happy to talk to them. >> we will. you mentioned taxpayers but every one of the dealers are tax payers as well. >> thank you, mr. chairman. there is another hearing

, a dealer can return the cars to gmac and we would redistribute the cars with no cost to the dealers. >> thank you. myime has expired. . . why do they have to pay you to take back the vehicles when you have shutdown. why did have to pay $1,500 to shut them down? >> first of all, the company filed bankruptcy. the fact of the matter is, in a bankruptcy, all precedent would be the inventory would be the responsibility of the dealer. if the company their franchise with is no longer in business, there was not a provision in possession financing and it could not be provided to buy the cars back. still our challenge was, and it was a good one, without using taxpayer money, to relieve dealers of inventory and do it in a manner where it did not cost the taxpayers, which we did through the redistribution program. that redistribution program was implemented and we distributed 100% of the vehicles. we are happy to say that is complete. >> that to happen very late last night. as of 7:00 last night, we got calls from dealers saying they had cars and would not take them back. >> we have had written

off the federal debt but we are conducting monetary policy by buying and selling freddie, fannie and gmac debt. so this illustrates the fact that 5, 8 years from now the gloomy outlook that i'd just given might be very, very different should health reform in a constructive way be enacted. thank you. [applause] >> thank you, bob, for those excellent and somewhat sobering remarks. and for your very kind words about nihcm's anniversary. i really appreciate that. next we'll hear from cleve killingsworth ceo of blue cross blue shield of massachusetts. cleve is a very important leader of healthcare reform in massachusetts. he's also participating very much in the day-to-day way in that healthcare reform as well. he's been an outspoken advocate for quite a bit of time now on payment reform and he is doing some very interesting things with his own company. joining him will be andrew dreyfuss who is executive vice president of healthcare services for blue cross blue shield of massachusetts. >> good morning. it's good to be here. we don't often get a chance to present to this particular collection

because, the fed could conduct monetary policy by buying and selling fannie mae, freddie mac and gmac debt instruments! [laughter]. >> and as it turned out, the economists were half right. we haven't paid off the federal debt, but we are conducting monetary policy, by buying and selling freddie, fannie and gmac debt. so, this illustrates the fact that five, eight years from now the gloomy outlook i have just given might be very, very different, should health reform and a -- in a constructive way be enacted. thank you. [applause]. >> thank you, bob for those excellent and somewhat sobering remarks. and, for your very kind words about nihcm's anniversary, appreciate that. next we'll hear from cleve killingsworth from blue cross/blue shield of massachusetts and is a leader of health reform in massachusetts and is also participating very much in the day-to-day way in that health care reform as well, and he has been an out spoken advocate for quite a bit of time now, on payment reform and he is doing some very interesting things with his own company. joining him will be andrew dreyfus, who

again, we started that process within ten days and established a relationship with gmac. they're putting a floor plan position as we speak. over 80% of the affected dealers have a floor plan available now to take these vehicles. >> do they know that, because i'm not hearing that from one dealer that they understand that there is a plan in place that this inventory will be taken. >> the dealers do know that. it's been -- they've been called. we have a log, a phone log confirming the discussion with every dealer. e-mails have been sent. the dealers who have agreed to have the redistribution occur are getting a daily status and we have now 97% of the vehicles committed by the dealers going forward to relieve these dealers of this inventory and about 51% of the parts. >> mr. whatley or mr. lopez, does that meet with your understanding? >> we have had no contact with the business center whatsoever until monday, june 1, after your office had called them and kind of rattled them. i did get a call then that said rest assured, we will try to come up with a plan to remove your inve

guest: now they have funds that gmac controls both of those, and that's something that consumers have to deal with finance arms on. host: he talked about chrysler and the company and market are talking about the times to foil the fiat deal, what does that deal mean for them? guest: it's an interesting partnership. fiat is popular in europe and has a number of models on the smaller, fuel-efficient end. and they have cars that used to be in the u.s. market. they haven't been in the market for a while. the question is how long it takes for them to bring the vehicles into the u.s. market and what kind of platforms they will introduce. but i think there is technology there that chrysler feel they can benefit. host: to chicago we go, this is our independent line, welcome. caller: yes, i would like to say that americans need to learn more about european vehicles. almost everyone is building the diesel vehicles that are getting more mile acknowledge. -- mileage. and americans are brain-dead about this. and in the united states they had a special program where they all developed diesel-electri

guest: right, gmac, gm -- all these firms. anyone who has received bailouts in the last six or seven months. host: here is a tweet -- a comment on mr. feinberg. every american should see a giant red alert here. this is baltimore, md. on our democrats' caller: line good morning. i have a question for your guest. my question is, i wonder if mr. crittenden was aware that president obama as a center sponsored a bill to curb executive pay? guest: yes, i mean, heat -- go ahead. yes, heat as a senator on a number of issues sponsored legislation, mortgage bankruptcy -- caller: yes, i did here on npr this morning that in a couple of weeks it is expected that public-private partnerships are buying toxic assets is expected to go forward. some people are stepping up to that. it sounded more encouraging. i thought that might be helpful. it seems like a lot of people think we're rescuing banks when will we are trying to do is rescue the economy. during the great depression one thing fdr did not do was rescue the banks. i think that is what

the government run general motors with the gmac financing cars close to zero. ford motor credit is far more above a zero. some say it makes competition vigorous. there is no fact that for the bears that out. the government will not compete fairly. we believe there is a big marketplace beyond today's marketplace that we can help create. our members will come up and talk about that. many will talk about elements of the plan we will be working with an drafting people on and hopefully -- we are almost always last in line with the resources available to congress these days. we will be working hard to bring these concepts into legislative language as quickly as began. >> thank you. that you for your leadership on this solutions group. the president said we have a uniquely american solution and many in american plan. our plan will focus on affordability, accessibility, and availability. we think it is very important that there be a robust waste, fraud, and abuse side of the program. we find this in our health-care system and there should be strong oversight in our sys

[laughter] ok, gmac has received $10 billion. they are offering five-year no interest loans to help their cause. how can we compete with that without government money? is the government crowding them out? you're darn right they are. what is going to happen with the government plan? first of all they won't pay doctors enough to pete their costs. someone can probably pay less with the government plan because it is subsidized by taxpayers. you'll again to see the private insurance dry up. the employers will say i don't want to do this. go get your health scare from the government. it will definitely take the place of private insurance. there will be more cost shifting instead of less. this administration believes the american people are stupid. they will sit there and -- they will say while we're reporting 1.9 million jobs lost and say with a straight face we have saved or created 150,000 jobs. they they we're stupid. they think that you do not know that the government does not work well. that the same people who cleaned up after ka

other dealerships are full, chrysler financial is gone, gmac is not onboard yet. there's just no place to go with these cars. chrysler says they will try to put buyers and sellers together, and that they will endeavor to assist in selling these cars, but the contract we had to sign clearly states they have no responsibility and no obligation to do anything. after june 9, we cannot sell these cars as new, used or even to other dealers. we need a firm, real plan, not just what they will try to do. plus we have warehouses full of parts that will go unidentified after june 9. they will be impossible to sell, just a total loss. ive employees with families who worked for this dealership for years. a 90-year investment is just gone. and neither my family nor my employees have any say about it. we have done nothing wrong here and should not be suffering this loss. i certainly hope you can help us. this is a pretty terrifying time, and i want to thank you for your time and your interest. >> thank you very much, sir. i would call now on mr. james press, the president of chr

the government run general motors with gmac financing cars close to zero. before credit is quite a bit above zero. -- the ford credit is quite above thzero. the government will not compete fairly. we think there's a marketplace we can help create. our members are going to come up and talk about that. they're going to come and talk about elements of the plan that will be working with folks to draft. while we are almost always last in line with the resources available to congress these days, we're going to be working hard now to bring these concepts and the legislative language is quickly as we can. >> thank you for a leadership on the solutions group. i want to think leader boehner and all of my colleagues to help really make it possible for us to come forward with an american solution to health care. the president said that should have a uniquely american solution. we have what that we believe focuses on affordability, accessibility, and availability. the question is, how we do that? we think is very important that there be a robust waste fraud and abuse ov

the government rush run general motors with gmac financing for a car is close to zero. ford motor credit it is quite a bit above zero. for those that say this is just another competitor in the field and won't make any difference, it just makes competition bigger, that is not -- there is no fact ever that bears that out. the government will not compete fairly. we believe there is a big marketplace beyond today's marketplace that we can help create and our members are going to talk about that. mr. camp, mr. barton, mr. mckeon and jenny brown-waite and we will talk about elements of the plan. we will be working with the drafting folks on that and hopefully while we are almost always last in line with the resources available to congress these days, we are going to be working hard now to bring these concepts into legislative language as quickly as we can. >> thank you, roy. thank you for your leadership on the solutions group. i want to thank leader boehner and all of my colleagues here and those that are not here who helped really make it possible for us to come forward wit

dealers and customers and if i think about the situation last fall versus today, and the ability for gmac to provide competitive products and services, product services and gm dealers and customer, we are away from where we are. confident that we will be a successful partner going forward. the third is we are in the process of right sizing our inventory. our dealer's inventory, given the level of sales experienced in the market, driven large i think our job is to make sure we get our level of inventory in line, maintain it there, so that the inventory pressure situation in our view isn't necessarily given the environment tenable. we need to basically go to market with more equily brie yum! versus the market-sales. so i think it talks about products, customers, financial services that can support that and then finally how we run our production schedules. this is a significant change from what we've historically been able to accomplish in the past. [captioning performed by national captioning institute] [captions copyright national cable satellite corp. 2009] >> later federal reserve chair

guest: chrysler and gm were challenged with their financing arm for a while but now they have gmac that controls both of those, and that is something obviously consumers have to deal with. host: "the financial times" talks about chrysler investors try to foil the fiat deal. what is your take on the fiat deal? guest: fiat is popular in europe and has a lot of models there. also some cars that used to be in the u.s. market. they have not been in the market for a while, so the question is how long does it take for them to bring those vehicles into the u.s. market, what kinds of platforms it would be introducing. but i think there is technology that chrysler believes it can benefit from. host: to chicago we go. been on the independent line. caller: americans need to learn much more about international automobile design and engineering. almost every country in europe is already presently deal -- building diesel cars that get over 80 miles a gallon and most americans are brainwashed about diesel. they know practically nothing about them. even here in america when clinton was the president, th

gmac is providing customers financing businesses, retail and wholesale financing. i feel very good about it. thirdly, we are planning to run our business and we have a series of processes for today that will allow us to run our business as usual. mix of the bill the of the bankruptcy process -- if one steps back to look to the broad picture of what is being accomplished here in terms of restructuring and the balance sheet, it is a remarkable opportunity to address both the competitive issues and the significant excess leverage we have on the balance sheet. in the and this was the best tool to address both of those and do it thoughtfully. yes, we are concerned about the impact on air sales in bankruptcy. we're doing everything we possibly can. we are in business, servicing customers, we are in the market without standing offers, and we have great products to sell. that is what we will be doing. in the meantime we will move fast through bankruptcy. >> we will take three more in the room on this side and in the two funds. >> i'm with the fox business network. hypothet

[laughter] they said gmac has received $10 billion and offering five-year no interest loans. how can we compete quit that? with the government money? is the government crowding them out? you are darn right. what will happen with a government plan first of all, they will not pay doctors enough to meet the cost so doctors have to charge private insurers more. anybody getting their healthcare through the employer will probably pay less with a government plan because it is subsidized. you begin to see their private policies dry up as more employers say i don't want to do this go get your healthcare from the government program will definitely replace private policies does the government will subsidize and will not pay doctors enough there will be more cost shifting. i just have to go back to what is apparently trooper go this administration believes the american people are stupid. they will sit there and say well bree report 1.9 million jobs lost and say with a straight face we have saved or created 150,000 jobs. they think you're stupid and that you don't know that government doe

their lots is going to be moved to another dealer with financial -- with financing provided by either gmac or other entities so all the dealers are going to be able to sell their cars at dealer cost. again, this was a matter that was raised. members like you brought it to attention and i think a good solution was made. we certainly see our role as monitoring and staying on top of these things and whether it's a senator or mayor or anybody who identifies a stake holder who's not being dealt with, we're going to insist on everybody getting a hearing. but as i said earlier, i don't want to mislead you. we're not going to get in and kind of arbitrate disputes between the company and its stake holders. we're going to insist these companies manage themselves in a commercial fashion. >> mr. chairman, of course my time is it is the taxpayers' money they your l

with various stakeholders as well as the decisions on on how best to invest taxpayer dollars, in gm, gmac and chrysler. i look forward to exploring the rationale behind these decisions and the administration's plans for the future. dr. montgomery is tasked with a far different and a far more difficult responsibility. and that is to steer federal assistance to communities devastated by auto-related job losses, plant closings and dealer consolidations. so i look forward to hearing about your travels around our nation and learning of the resources you believe are required to coordinate these recovery efforts. and with that, let me turn to my colleague from alabama, for any opening comments and then we'll hear from our witnesses. >> thank you, mr. chairman. when the detroit three came before this committee to ask u.s. taxpayers for bailout money, they cited the financial crisis as the reason for their troubles. the financial crisis was certainly a reason but it was by no means the only reason these companies were failing. although structural and managerial problems in these companies were dec

domestic companies, chrysler and gm were white-- finance with the chrysler arm but now they have funds, gmac controls both of those and that is something that consumers have to deal with. with those finance arms. >> host: he talked about chrysler and the companies in the market section of the "financial times" talks about the chrysler investors try to foil the fiat deal. what is your take on the deal for chrysler? what dissent mean for them? >> guest: it is an interesting partnership. fiat is popular in europe and has a number of models there that are on the smaller fuel-efficient end. they also have some cars that used to be in the u.s. market. they have been in the market for a while but it looks like the question is how long it takes for them to bring those vehicles into the u.s. market, what kinds of platforms that will be introducing but i think there is technology there that chrysler believes it can benefit from. >> host: to chicago we go, dean of our independent line. welcome. >> caller: i would like to say americans need to learn much more about international automobiles. most every

lots is going to be moved to another dealer with financial patient with financing provided by either gmac or other entities, as all the dealers are going to be able to sell their cars at dealer cost. again, this was a matter that was raised, members like you brought it to attention, and i think a good solution was made. we certainly see our role as monitoring and staying on top of these things. and whether it's a senator or a mayor or anybody who identifies a stakeholder who is not being dealt with, we are going to insist on everybody getting a hearing. but as i said earlier i don't want to mislead you. we're not going to get in and kind of arbitrate dispute between the company and its stakeholders. we're going to insist these companies manage themselves in a commercial fashion. >> well, mr. chairman, of course my timeout but i would just say that unfortunately it's the taxpayers money that you are largely managing. i just think we have a requirement, not only to help the people where plants have closed which i think is huge and important, but also the many communities and the dealers tha

[laughter] they said, ok, gmac has received $10 billion and they're offering five-year, no-interest loans to buy their cars. how can we compete with that without government money? is the government crowding them out? you're darn right they are. what's going to happen with a government plan? first of all, they won't pay doctors enough to meet their costs. so doctors have to charge private insurers more. someone who's getting their health care to an employer can probably pay less with the government plan because of subsidized taxpayers. so you'll begin to see private policies dry up as small employers say i don't want to do this, go get your health care from the government. it will definitely replace private policies because the government will subsidize those policies. they won't pay doctors enough. there will be more call shifting instead of less. i just have to go back to what is apparently true. this administration believes the american people are stupid. they'll sit there, they'll say while we're reporting 1.9 million jobs lost and say with a straight face, we have saved or created 150

the government-run, general motors with gmac, financing for cars is close to 0%. ford motor credit the quite a bit above 0%. for those say this is another competitor in the field and it won't make any difference, it just makes competition bigger, that's not -- there's no fact ever that bears that out. the government will not compete fairly. we believe there's a big marketplace beyond today's marketplace that we can help create and our members are going to come up and talk about that. mr. kemp from ways and means, mr. barton from energy and commerce, mr. mckeon from the workforce committee, generally brown-waite and charles boustany are going to come and talk about elements of the plan. we'll be working with the grafting -- drafting folks on and hopefully have -- while we're almost always last in line with the resources available in the congress these days, we're going to be working hard now to bring these concepts into legislative language as quickly as we can. mr. kemp. >> thank you, roy. dave camp from michigan. thank you for your leadership on the solutions gro