MSNBC "The Ed Show" Interview - Transcript

Interview

MSNBC "THE ED SHOW" INTERVIEW WITH REP. GARY PETERS (D-MI)

INTERVIEWER: ED SCHULTZ

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MR. SCHULTZ: Big breaking news tonight. General Motors plans to close most of their U.S. factories for up to nine weeks this summer.

Let's go to Congressman Gary Peters of Michigan.

Congressman, great to have you on with us tonight. This is good news, bad news? What do you think?

REP. PETERS: Well, it certainly reflects what's happening with the auto industry all across North America. Sales are down dramatically, not just with General Motors but with Chrysler, but as well as with Nissan and Toyota, Honda, all sales are down about 40, 50 percent. And as a result of that, companies are now curtailing production or stepping back production.

General Motors' announcement, of course, today, which we're not happy about, but we're likely to see other announcements from other automakers. In fact, I understand Toyota also may be cutting back production. When you have this kind of drop in sales that we've seen as a result of this credit crisis, and consumers, quite frankly, just very nervous about getting out there and buying an automobile or any kind of large ticket item right now.

MR. SCHULTZ: Now, Congressman, do you think that this is an indication that they might be able to avert bankruptcy?

REP. PETERS: Well, I think, you know, this is a way to trim costs, which is what they have to do in order to be viable going forward. This allows them to conserve cash and also meet production with the actual demand that's out there. But the real challenge for both General Motors and Chrysler right now is to get the creditors and the bond-holders to renegotiate debt. Both of them are on very short time lines. We've only got about eight days for Chrysler and --

MR. SCHULTZ: Are there any serious offers on the table?

REP. PETERS: Well, right now the creditors for Chrysler gave what I think is just an outrageous offer. It is not serious; needs to be revisited.

MR. SCHULTZ: Okay.

REP. PETERS: General Motors will be going to their bond-holders very shortly. We'll see what happens there. But that's going to be critical for these companies. They have to step forward and be part of a solution so we can continue to have not only an American auto industry but a manufacturing sector in this country, which is essential for the American middle class to be in this country.

MR. SCHULTZ: Do you know when these shutdowns are going to take place? Is it this summer or --

REP. PETERS: Well, we're expecting it this summer. We're still waiting for more details from the company.

MR. SCHULTZ: Okay. Congressman, great to have you on the program. I appreciate your time on short notice tonight.

REP. PETERS: Great to be with you, Ed.

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