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-- exchange where one story you can't ignore even though the markets are awash in red -- Is that the auto companies came out with their September sales up.
Double digit percentages for most of these companies except Ford which was still up about 9% so.
Is that in and of itself a validation that these auto companies.
Deserved to be saved in a manner was at the Helm of all of that Steven Rattner joining us -- a Fox Business exclusive the former car -- And former managing partner at quadrant -- -- to CST thank you for joining us live specialist.
OK let's just first get the auto stuff out of the way because I like your big picture thinking as well but.
Looking at Chrysler which is not a publicly traded stock anymore and of course -- taken over by fiat.
For September sales of that -- that Jeep Wrangler doing unbelievably well.
What does this say to you especially considering were in a little bit of a tough.
-- chair of rough patch for the markets and for the economy.
Let me start with the big picture on autos the fact is that the sales increase that you referred to looks like it's gonna work out to be about twelve point eight million.
Annual rate up from about twelve point two million I think last month.
So this is a macro indicator that is.
Marginally positive for the economy better than we thought.
-- at a good sign in terms of just the overall direction of the economy.
With respect to Chrysler specifically.
As I've said before the Sergio Marchionne the CEO of Fiat has done a spectacular job with that company.
He bought out the US government early repaid all the loans early.
And has just been knocking the cover off the ball with both this product is marketing his finance everything.
That he's done there has really been for the better.
Well you you heard I'm sure that Bob Nardelli who was running Chrysler.
Before all of this happened is coming out of at least one Detroit newspapers saying I sure wish.
That cerberus the company He was working for that took about an 80%.
A portion of Chrysler.
Could have done better than Fiat and he's angry at the government feels He could have actually done a better job -- all of this what do you say that what's your reaction.
Bob Nardelli is a terrific guy spent a lot of time with them on the auto task force I -- them before.
I have a lot of respect form.
Sometimes in the life of companies first set -- -- can be good the other thing about Fiat that attracted them to us was the fact that they are global company.
On the fit with Chrysler was perfect there are strong outside of the US Chrysler strong only in the US.
They have small car technology to Fiat 500 they had small engine technology.
And it just felt like the kind of alliance that could do great things and that's what's been happening.
Well you know Bob Nardelli obviously had a had a terrible hand dealt him in that He had to furlough 35000 employees it ended weighs heavily on him and -- shows.
Obviously the turmoil that still goes on after a couple of years but.
Was this a case where you've looked at servers and said these guys can't cut it or it was just simply beyond could do better.
Bob Nardelli had a terrible hand dealt to him Bob Nardelli is a terrific CEO and a great American and He worked his tail off.
To fix it.
But it was a leverage buyout it was over leveraged.
And just like a lot of these things it was time for restructuring and is part of that as I said it wasn't.
So much that we thought there was anything wrong with Bob Nardelli is that we found the alliance with Fiat and everything they brought to the party.
Enough to make us justify that additional eight billion dollars of government money.
-- are OK before we get to the broader economy Steve I just need your thought on the the picture of auto sales.
We are currently in a very worrisome point right now for the economy and people think that it'll start getting reflected in earnings now does that twelve.
What is it twelve point eight million up -- this that.
Start to trend back -- a little bit.
No I I hope not I don't think so.
I feel like the economy and there's been other data that's come out the last couple of days from new claims unemployment insurance the ISM number today on manufacturing.
That suggests that the economy is at a staggering along at this very very slow growth rate.
And -- oil prices coming down even though that has not fully translated into gasoline prices I think that's part of why you see consumers being willing.
Particularly the trucks as you mentioned it to buy new vehicles so I'm.
Cautiously optimistic about auto sales for the balance of the year that we'll go back over that thirteen million number and I thought that level because of the restructurings.
GM and Chrysler will make a lot of money.
We we have Richard Fisher of the Dallas fed on Friday telling Peter Barnes that He really didn't agree with that -- with that the operation twist of the Federal Reserve where they were.
Getting rid of shorter dated maturity out shorter dated treasuries still for longer dated ones.
What do you think of operation -- will it work and do we need a different kind of QE3.
I think you have to define what you mean by work as QE3 as -- operation twist going to turn the economy around and suddenly bring unemployment down.
Seven or 8% know of course it's not I think most economists estimate that it could create a few 100000 jobs it's not a lot it's better than nothing.
I think that the Fed is gingerly feeling its way along because there is opposition.
The former mister Fisher and two other.
Members of the FOMC to further monetary easing and I think this is what.
Chairman Bernanke could get through a majority of his group.
So I personally I'm on the side of more rather less easing I think the economy is weak I don't see any sign of inflation and I think this is what a classic.
Monitors would tell you the Fed is here to do.
Steven Rattner thank you so much for joining us believing that that operation twist is certainly something that was needed but also feels that -- don't really see a market turned down for auto sales thank you very much for being with Fox Business.
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