Later, Smith talked to Face the Nation host Bob Schieffer about that interview: "Can you remember in your lifetime when a President could reach into a private company and say, ‘you don't have a job anymore’?" Schieffer replied: "Well, we haven't had it in the past where the government owned as much of a company as the government now owns of these auto dealers...This was to let people know that he [Obama] takes seriously their concerns. I mean, he was very clear in the interview, as you heard in the sound bite there, that Bill Plante used, things are going to have to change." Smith observed: "And I've got to imagine if you're sitting in a boardroom in a bank in the United States right now, you're wondering about if you might be next with all of the money that's come your way already."
The one instance of criticism came when co-host Maggie Rodriguez introduced a report on the issue by correspondent Bill Plante: "But first, Asian markets reacting to President Obama's plan to deal with GM and Chrysler, and they don't like it. Japan's Nikkei sank almost 400 points, while Hong Kong's Hang Seng dropped almost 5%... Bill, it has more than strings attached, it has ropes attached to it."
Plante’s report cited no opponents to the President’s decision and instead Plante simply explained: "The White House effectively forced out the head of General Motors. Imagine that. Why? Because $17 billion and four months later, the administration convinced that the current management couldn't turn those companies around. So today the President unveils sweeping changes, and they do come with strings attached as a condition for receiving more aid. ...The sacrifices include the resignation of GM CEO Richard Wagoner. With new leadership, the government will give GM more time, another 60 days of working capital to emerge as a competitive business."
Here is the full transcript of the segment:
7:00AM TEASE:
HARRY SMITH: It's the end of the road for GM's CEO, Rick Wagoner, ousted by President Obama as the White House demands more from the U.S. auto industry.
BARACK OBAMA: We think we can have a successful U.S. auto industry, but it's got to be one that's realistically designed to weather this storm.
7:01AM TEASE:
SMITH: Well, it was very interesting, because we saw Bob Schieffer's interview with Barack Obama Sunday Morning and he said we need more from the auto industry. And the more was that Rick Wagoner, whose head went rolling off the guillotine, he is no longer the CEO of General Motors. And we'll talk more about that in just a second.
MAGGIE RODRIGUEZ: Right, the headline reads, 'Obama Fires GM Boss.' It is big, big news. We'll talk about that.
7:01AM SEGMENT:
MAGGIE RODRIGUEZ: But first, Asian markets reacting to President Obama's plan to deal with GM and Chrysler, and they don't like it. Japan's Nikkei sank almost 400 points, while Hong Kong's Hang Seng dropped almost 5%. CBS News senior White House correspondent Bill Plante joins us this morning with more on this latest bailout. Bill, it has more than strings attached, it has ropes attached to it.
BILL PLANTE: It sure does, Maggie. The White House effectively forced out the head of General Motors. Imagine that. Why? Because $17 billion and four months later, the administration convinced that the current management couldn't turn those companies around. So today the President unveils sweeping changes, and they do come with strings attached as a condition for receiving more aid.
BARACK OBAMA: And that's going to mean a set of sacrifices from all parties involved. Management, labor, shareholders, creditors, suppliers, dealers., everybody's going to have to come to the table.
PLANTE: The sacrifices include the resignation of GM CEO Richard Wagoner. With new leadership, the government will give GM more time, another 60 days of working capital to emerge as a competitive business. But Chrysler is a different story, not viable as a stand-alone company. But the government will give it 30 more days to finish a possible agreement with Fiat. And if that works, will consider investing another $6 billion in the partnership. If it doesn't work, no more government money for Chrysler.
GARY BURTLESS: Both companies recognize what's at stake, and they're just doing anything they can to make sure that these companies survive.
PLANTE: The administration has also got a new program to reassure consumers that their warranties will be honored. It's an effort to give them some comfort as the companies go through this huge upheaval. Harry.
HARRY SMITH: Bill Plante at the White House this morning, thanks. CBS News chief Washington correspondent Bob Schieffer had President Obama on 'Face the Nation' yesterday. Bob, we remember one of the highlights of the interview where President Obama says GM and Chrysler are not doing enough. Can you remember in your lifetime when a President could reach into a private company and say, 'you don't have a job anymore'?
BOB SCHIEFFER: Well, we haven't had it in the past where the government owned as much of a company as the government now owns of these auto dealers. I mean, you know, they have poured all this money in, and the President was very clear during his interview. He talked about when he met with all the big bankers that the White House on Friday. And he says he told them they have to understand how all of this is looking to people out in the country. People don't understand these handouts that General Motors, these big things to banks and so forth. This was to let people know that he takes seriously their concerns. I mean, he was very clear in the interview, as you heard in the sound bite there, that Bill Plante used, things are going to have to change. And when I asked him, are the auto dealers -- are you going to be able to give them any more handouts? Have they done what you think they have to do? He said, 'they're not there yet.' And boy -- boy, that was the understatement of the day.
SMITH: And I've got to imagine if you're sitting in a boardroom in a bank in the United States right now, you're wondering about if you might be next with all of the money that's come your way already. I want to shift gears real quickly. The President heads to Europe this week. He wants to get the rest of the world, especially Europe, to do stimulus. They're probably not going to do it, right?
BOB SCHIEFFER: I don't think too much is going to happen on this trip. They had great hopes for all of this, some sort of a new world financial reform where everybody got together. But quite frankly, the Europeans are not very happy with the way things are going. They don't like all of this debt that the President's stimulus package is and so forth has caused here. I think we're going to get a lot of pictures and a lot of earnest statements. I don't think we're going to see much happen. There's this growing sense of protectionism in Europe and among the big countries now throwing up trade barriers. I think that's one of the main things they're going to talk about, Harry, but I don't know how much they're going to get done.
SMITH: And real quick, I want to play a bite because you guys talked at some length about Al Qaeda and Afghanistan. Let's roll this and we'll come back and talk about it.
SCHIEFFER: But you're talking about going after them. Are you talking about with American boots on the ground, pursuing these people into these so-called safe havens?
OBAMA: No. Our plan does not change the recognition of Pakistan as a sovereign government. We need to work with them and through them to deal with Al Qaeda, but we have to hold them much more accountable.
SMITH: And Bob, we just have a few seconds left, but quickly, go ahead.
SCHIEFFER: Well, I think what he was saying here is, 'look, we know you're a sovereign country. We're not going to go into your country without talking to you about it.' But he's also saying, 'if you don't do it,' I think he -- what he was saying, the unstated message was, 'we're going to do it.' He's going after Al Qaeda now. He says 'we have no choice but to win. These are the people that caused 9/11. We're not going to let that happen again.'
SMITH: Bob Schieffer, as always, thanks so much. Good to see you this morning. Appreciate it.
SCHIEFFER: You bet.
