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Former CarMax CEO Austin Ligon on what he plans to say in front of the Democratic National Convention.
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Leaders are going to be speaking at the Democratic National Convention to make their case for why President Obama should keep command of the US economy.
Joining us now before he speaks at the DNC is one of those business leaders openly -- and CarMax -- found there.
So I think Serbian -- us now I know that part of your speech will -- -- around the auto industry.
And how well it is doing under President Obama why do you think that's true.
Well look I've I've said this many times.
Through the last several years I think one of the things the president doesn't get a lot of credit for.
It's how rapidly.
The actions he took after he took office.
Help the recovery of the auto industry.
-- -- took very decisive action to restructure.
To companies that were absolutely on the verge of failing and General Motors and Chrysler.
And they would've taken the entire auto supply industry and much of the auto dealer industry down with them.
And get a fairly short period of time.
His team -- on.
-- fired -- basically incompetent management and board brought in new folks then.
They've really thought great -- since -- and secondarily.
Very close to my heart is something called T -- L -- which was.
The auto securitization.
Restart.
The -- securitization.
Loan program have been absolutely locked up for overnight loans people couldn't get credit to buy cars.
The market was.
Falling it was -- -- nine million cars a year.
And really getting that going again was critical accomplishment.
And at some sense I think it almost happened so quickly and so easily people forget that you know it's kind of what have you done for me lately but -- I think those are extraordinary accomplish.
Austin consider the cost everything has a cost -- it was -- eighty billion dollars I know a lot of it has been paid back.
But -- there's still -- tremendous debt that is as outstanding at 37 billion for GM alone.
Look what has happened -- Chrysler Chrysler is essentially become an Italian park -- a lot of Americans say.
Had I want my taxpayers should be used it to fund an Italian car company which is what Chrysler now is -- I think there is a cost to everything yes they were success yes or a lot of jobs that are still in the United States but at this huge cost I mean he's spent enough money -- -- -- and you can.
-- -- -- -- -- The cost as trivial compared to the cost the financial bail out the difference is at least we got rid of incompetent management the auto companies which -- -- better -- -- crossword.
Eighty billion dollars.
I think it clearly was to the economy at some of the best stimulus money that we spent.
Our our auto sales are up 50%.
Since January February show me another area of the economy where that's not gonna look at -- I had stock I guess our guess if it happened just GM stock is half of what it was at its IPO it's now trading about 21 -- a share we're marketing and pay back the taxpayers at that price.
The stock markets the stock market not not in control of that I'm just talk about the positive impact the -- on the economy and on the industry.
I like that anybody in the industry will tell you -- that's interesting sir that you actually think this was successful because.
Some of the programs cash for clunkers in particular.
Really hurt the used car sale market and that's what CarMax does cells used cars and -- -- we're very hard to come by and became very expensive because the cash for clunkers.
Yeah -- -- cash for clunkers was an okay program wasn't the greatest program.
But it didn't dramatically hurt the used car business it just -- -- temporary impact both positive and negative like a lot of programs one of -- look one of the realities is when -- -- -- once in eighty year.
Economic collapse.
You have to trial lot of different things some things work and -- some things don't that was true both for the bush administration and for the Obama administration.
And -- cash for clunkers was okay but it wasn't a home run that Yale lab where -- auto restructuring -- Boston leg and CarMax co-founder -- thank you very much for coming in appreciate it.
