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INDEXVol. 177, Number 285© 2008Detroit Free Press Inc.Printed in the U.S.

TIGERS’ PROGNOSIS Sheffield ready;Zumaya determined

SPORTS,1D

Despite a historic new labor agree-ment, a garage full of new products and$9 billion in cost-cutting over the lasttwo years, General Motors Corp.’s re-lease of its worst-ever annual financialresults Tuesday shows that its NorthAmerica division is still struggling topost the profits that Wall Street expects.

GM Chief Financial Officer FritzHenderson acknowledged “there arestill a number of near-term challenges,”but overall he seemed positive about theprogress GM has been making.

GM, which celebrates its 100th anni-versary this year, on Tuesday reportedthe worst loss in automotive history —$38.7 billion, compared with $2 billion in2006 — and quickly got back to the busi-ness of cutting costs with a buyout or re-tirement offer for every UAW-repre-sented employee.

The world’s largest automaker isforecasting improved sales and pretaxearnings this year, mostly because ofstrength in emerging markets. Non-U.S.sales now make up about 60% of GM’s

GM’s strides not enoughBy SARAH A. WEBSTER

FREE PRESS BUSINESS WRITER

See GM, 11A

Record loss isposted despitecost cuts; newbuyouts offered

WASHINGTON — Six of thenation’s largest mortgage com-panies promised Tuesday to of-fer struggling homeowners amonth’s protection from fore-closure, a pause the companies

say will give themtime to renegoti-ate loans and slowthe rising tide ofhome losses.

Metro Detroithas been amongareas hardest hitby the foreclosurecrisis, suggestingthe plan could beof great help

there — if it’s not too late.Wayne County’s foreclosurerate, in fact, was the nation’sworst in 2007, according to a re-port being released today by Re-altyTrac Inc., which tracks fore-

Mortgage firms to cut many a breakMonth of relief notenough, some say

By TODD SPANGLER

FREE PRESS WASHINGTON STAFF

� 3,000 get help at Cobo on how toavoid foreclosure. 1B

� Wayne Co. leads the nation. 1B

See CRISIS, 7A

WayneCounty hadthe nation’shighestforeclosurerate in ’07,according toRealtyTrac.

for and what to look for.”Goodman will advise the council on

its investigation of the scandal. Thecouncil is seeking a financial audit ofthe mayor’s office and a look at the ci-ty’s Law Department. It called on themayor’s office Tuesday to release alldocuments related to the settlement.

Goodman told council memberscooperation from the Kilpatrick ad-ministration would be key to his job.

“That will be the most difficultproblem here — getting all the infor-mation,” he said during his interview.

The Detroit City Council chose oneof the city’s most accomplished civilrights attorneys, Bill Goodman, onTuesday to serve as its independentcounsel in the text message scandalengulfing Mayor Kwame Kilpatrick.

Goodman, 67, comes to the postwith a background in some of the ci-ty’s most celebrated legal cases, in-cluding being part of the team of at-torneys whose lawsuit led to the dis-banding of the police department’scontroversial STRESS undercoversquads in the 1970s.

“He’s got a tremendous amount ofexperience, and I think he’ll bring a lotof integrity to the position,” councilPresident Ken Cockrel Jr. said. “Ithink he’ll know exactly what to ask

COUNCIL’S PICKSEES TOUGH JOB

Photos by ERIC SEALS/Detroit Free Press

Detroit City Council President Ken Cockrel Jr. conducts an interview Tuesday of former U.S. Attorney Jeffrey Collins, who got twovotes for the job of independent counsel. Bill Goodman got the position with four votes. David A. Robinson received three.

Detroit civil rights lawyer BillGoodman will serve as the CityCouncil’s independent counsel.

Goodman to advise probe of mayor

Civil rights lawyer ispraised for integrity

By ZACHARY GORCHOW

FREE PRESS STAFF WRITER

See COUNCIL, 9A

An intricately coordinated raid 18months in the making resulted in thearrests Tuesday of more than two doz-en business owners and employees in-volved in a fraud that costs the stateabout $55 million annually.

At least 25 people were arrestedwhen about 200 state, federal and localofficials descended on the stores,mostly in Dearborn and Detroit.

The fraud focused on Bridge Cards,the electronic debit cards that re-placed government-issued foodstamps in 2001.

Instead of using the cards to buyfood, State Police said some card own-ers collaborated with store owners totrade them in for cash at the stores —

25 arrests madein raid targetingfood card fraud

By DAN CORTEZ

FREE PRESS STAFF WRITER

See FRAUD, 6A

KEY 2007 RESULTSIN GM’S RECORDANNUAL LOSSPretax income by region andthe year’s tax expense

LATIN AMERICA, AFRICAAND THE MIDDLE EAST

$1.35billion

ASIA/PACIFIC

$681million

GMAC

-$1.15billion

INCOME TAX EXPENSE

-$37billion

EUROPE

-$524million

NORTH AMERICA

-$3.3billion

Bill Goodman� Age 67.� Partner at Goodman & Hurwitz, aDetroit law firm specializing in civilrights litigation.� Grew up in Detroit, graduatedfrom Mumford High School. Son ofthe late Ernest Goodman, a legend-ary civil rights and labor lawyer inDetroit.� Undergraduate and law degreesfrom the University of Chicago.� Worked in New York City from1998 to 2007, including two stintsat the Center for ConstitutionalRights, which represented Guanta-namo Bay detainees and victims ofNYPD racial profiling.� Partner from 1970 to 1998 in theDetroit firm of Goodman, Eden,Millender and Bedrosian. It was thenation’s first racially integrated lawfirm, founded by Ernest Goodmanand George Crockett, the late judgeand congressman.

� Profile of Bill Goodman, 9A

Check out complete coverage onthe text message scandal and

share your thoughts at freep.com/Kilpatrick.

� No ruling yet on appeal. 9A

Tom Walshon what thenumbersreally mean. 1E

� A Q&A on the buyouts. 11A

� Looking into GM’s balance sheet. 11A

Sen. Barack Obama tookMaryland, Virginia and Wash-ington, D.C., in primariesTuesday. His victories gavehim the lead in delegates overSen. Hillary Clinton. On theRepublican side, Arizona Sen.John McCain also won thosethree contests, adding to hislead. But his win in Virginiawas close with Mike Huckabee.REPORTS, PAGE 4A

Sen. John McCain, left, and Sen.Barack Obama continue on a roll

over their campaign rivals.

POTOMAC PRIMARIES

Obama andMcCain win3 contests

Writers voteto end strikeSTORY, 7A