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First on CNBC Interview: CNBC's Phil LeBeau Sits Down with General Motors Chairman & CEO Rick Wagoner on CNBC's "Squawk on the Street" (Transcript Included)

WHEN: Tuesday, July 15th at 10AM ET
WHERE: CNBC's "Squawk on the Street"

Following is an unofficial transcript of a FIRST ON CNBC interview with General Motors Chairman & CEO Rick Wagoner today on CNBC's "Squawk on the Street."

All references must be sourced to CNBC.

HAINES: GENERAL MOTORS ANNOUNCING PLANS TO BOOST LIQUIDITY.THE WORLD'S LARGEST AUTOMAKER MAKING A LOT OF CHANGES, SUSPENDING COMMON STOCK DIVIDEND. IN ANOTHER INTERVIEW YOU'LL SEE FIRST ON CNBC, PHIL LeBEAU IN DETROIT WITH THE CHAIRMAN OF GM.

LEBEAU: WE ARE HERE WITH RICK WAGONER. LET'S GET RIGHT TO IT. $15 BILLION IN LIQUIDITY YOU ADDED THROUGH 2009. DOES THIS EASE CONCERNS THAT GENERAL MOTORS MIGHT HAVE BEEN FACING BANKRUPTCY NEXT YEAR?

WAGONER: WE NEVER GAVE ANY STOCK TO THOSE CONCERNS BUT IT IS A STRONG SERIES OF ACTIONS ON OUR PART, LARGELY INTERNALLY DRIVEN TO REACT TO THE FACT WE HAVE A WEAK MARKET RIGHT NOW AND WE DON'T KNOW HOW LONG IT'S GOING TO LAST. SO WE THOUGHT IT'S BETTER BETTER TO ACT NOW AND CONTINUE TO STAY OUT AHEAD WITH AMPLE LIQUIDITY.

LEBEAU: SUSPENDING DIVIDEND, CUTTING HEALTH CARE BENEFITS FOR RETIREES A LOT OF PEOPLE SAY THIS COMES FIVE WEEKS AFTER YOU HAD THE RESTRUCTURING ANNOUNCEMENT AT THE ANNUAL MEETING.HOW DO WE HAVE CONFIDENCE THIS IS THE RESTRUCTURING THAT WILL WORK, THAT WILL GET GM TURNED AROUND?

WAGONER: WE'RE GOING TO HAVE TO CONTINUE TO LOOK AT CONDITIONS IN THE MARKETPLACE. I THINK IT'S FAIR TO SAY THAT CONDITIONS HAVE WORSENED SIGNIFICANTLY IN AUTO SALES THE LAST COUPLE OF MONTHS.AND THIS MIX SHIFT AWAY FROM TRUCKS AND SUVs TO SMALLER VEHICLES HAS CONTINUED.FRANKLY, THE FINANCIAL MARKET CONDITIONS HAVE GOTTEN QUITE A BIT WORSE OVER THE LAST COUPLE OF MONTHS.WE DECIDED WE NEEDED TO MOVE TO TAKE MORE OF THIS FUNDING INTO OUR OWN HANDS AND NOT RELY AS MUCH ON MARKETS.SO WE'RE DOING THAT NOW. WE HOPE IT'S WHAT -- ALL WE NEED TO DO BUT WE HAVE TO WATCH AND SEE HOW THE ECONOMY, THE MARKET DEVELOPS.

LEBEAU: YOU'RE TRYING TO RAISE $10 BILLION IN CASH, SO TO SPEAK, ORCOME UP WITH THAT THROUGH SOME NEAR-TERM ACTION, SUCH AS SUSPENDING BONUSES FOR EXECUTIVES, ATTRITION IN TERMS OF WHITE COLLAR JOB CUTS.IS THAT GOING TO BE ENOUGH IN THE NEAR TERM OR IS THERE A CHANCE THIS $1 BILLION A MONTH CASH BURN IS GOING TO ACCELERATEOVER THE NEXT FEW MONTHS AND YOUHAVEN'T DONE ENOUGH?

WAGONER: NO CHANCE OF THAT AT ALL, PHIL. AT THE END OF MARCH, WE HAD $24 BILLION IN CASH AND $7 BILLION OF COMMITTED CREDIT FACILITIES.WE COME IN WITH A STRONG LIQUIDITY POSITION. ON TOP OF THAT WE'RE TAKING SIGNIFICANT ADDITIONAL ACTIONS UNDER OUR OWN CONTROL TO BOOST THAT LIQUIDITY POSITION. ON THAT BASIS, EVEN ASSUMING VERY WEAK U.S. INDUSTRIES, THIS YEAR AND NEXT YEAR AND CONTINUING HIGH OIL PRICES WE CAN COVER LIQUIDITY REQUIREMENTS THROUGH THE END OF '09. THIS PUTS US IN A VERY SOLID POSITION.

LEBEAU: WHAT DO YOU SAY TO THE INVESTOR WHO SAYS, LISTEN, YOU'VE GOT THE DIVIDEND, STOCK IS AT A 54-YEAR LOW, WHY INVEST IN GENERAL MOTORS RIGHT NOW?

WAGONER: WELL, I THINK, MY PERSONAL VIEW IS GENERAL MOTORS IS A GREAT VALUE RIGHT NOW.WE'RE REACTING AND, FRANKLY, MANY OTHER STOCKS ARE, TOO, TO WHAT'S A PRETTY TOUGH OVERALL FINANCIAL MARKET CONDITION, A LOT OF UNCERTAINTY DUE TO THE RAPID RUN UP IN OIL PRICES.THAT'S WHY WE SAID WE NEED TO TAKE ACTIONS OURSELVES AND YOU LISTED SOME OF THEM BUT IT'S A LONG LIST OF ACTIONS TO MAKE SURE WE CAN PROVIDE FUNDING OURSELVES TOGET THROUGH THIS ROUGH PERIOD AND GET READY TO TAKE ADVANTAGE OF THINGS WHEN THE MARKETS AND HOPEFULLY AUTO SALES IN THE U.S.EVENTUALLY RECOVER.

LEBEAU: $4 A GALLON GAS.YOU SAID JUST A COUPLE WEEKS AGO, WHEN THAT HAPPENED, IS THATWHEN YOU NOTICE AID DRAMATIC DROP IN SALES?

WAGONER: YEAH.FAIR TO SAY, PHIL, THAT WAS CERTAINLY ONE OF THE TIPPING POINTS.AND IF YOU LOOK BACK, IT WAS ABOUT, YOU KNOW, IN APRIL TIME FRAME WE BEGAN TO SEE THIS THINGMOVE AND CONSUMER SENTIMENT CHANGED DRAMATICALLY.SEEMS LIKE IT'S A TIPPING POINT FOR CONSUMERS.

LEBEAU: REAL QUICK, TO THE PERSON THAT SAYS I DON'T HAVE CONFIDENCE THAT GM CAN STAVE OFFBANKRUPTCY IN THE NEXT TWO YEARS, WHAT DO YOU SAY?

WAGONER: I SAY WITH THE ACTIONS WE ANNOUNCED TODAY, FOCUSED ON $15 BILLION OF ADDITIONAL LIQUIDITY, BEYOND THE STRONG BASE WE ALREADY HAVE, WE'RE CONFIDENT THAT EVEN UNDER DOWNSIDE SCENARIOS WE'RE COVERED THROUGH THE END OF '09. AND WE THINK THAT'S CONSERVATIVEFOOTING AND THE RIGHT FOOTING TOBE ON IN TODAY'S UNCERTAIN WORLD.

LEBEAU: RICK WAGONER, CHAIRMAN AND CEO OF GENERAL MOTORS, FIRST INTERVIEW ON CNBC, THERE YOU HEAR IT, $15 BILLION, ENOUGH LIQUIDITY THROUGH THE END OF NEXT YEAR AND IF THE MARKET TURNS AROUND, BETTER SHAPE.





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