chrysler had a very weak product line. it didn't have a single car on consumer reports most recommended list. but it had a pretty scrappy management team. general motors actually had-- . >> rose: put in by private equity. >> bob nardelli from yen electric. general motors had actually not a bad suite of products, better than pple ve it crit f but as it came to learn it the the most dysfunctional management structure and team i had ever seen. e most incomtent finance stf, theost bureaucrac company it was really quite-- we were all dazzled by it when we first came to seit. >> rose: so you said to the president, or you said to the task force, we've got, the first thing we've got to do is get rid ofhe management of general mott sners. >> ibecame cle ver early onhat there had to be a management change. you'll remember that rick wagner flew, they flew on the three private jets in november of '08. re tn thhree private jets is rick basically-- . >> ros down to washington. >>or the congressional hearings. and rick said in a very suc

and chrysler would have been 300,000 jobs on day one. .2% on the unemployment rate.t that we didn't really want to take if we thought chrysler could be saved. and we thought chrysler could be saved. >> looking forward is the american car industry viable with three companies? should it really pair down over time to two? >> i believe that we restructured gm and chrysler to a place where for the foreseeable future it can make money. it involved sacrifice for workers. this is not the american dream for how people see their benefits and even their wages go down. but this is what was necessary to compete globally. gm's base wages are $28. in mexico gm pays $7 an hour. in india, gm pays $1 an hour and it's a relatively high wage p r payer. it's not the product that is most susceptible to this type of wage competition. it's very, very significant. i'll give you one quick example. an american company that is based in troy, michigan, it has a midwestern group of executives came in one day and said we need help. chatting about this and that. i said how many people do you employ

maybe they were trying to avoid paying the old debt of chrysler. guest: if i understand your question, when we were involved, there was a massive amount of debt. it had been through a leveraged buyout, was over leveraged, and we ended up restructuring that debt. some of it was written off. the most senior debt got $2 billion. essentially, the left most of that behind and started out new. we wanted to have a clean balance sheet for the company to start. host: has the president, administration, been too hard on the auto sector? guest: i think the president is trying to find a balance between the fact that this country is incredibly angry at the financial sector. on the other hand, the president understand that we need a viable financial sector to function. i think he has been walking a careful, appropriate line. he is the president of all people, not just wall street. i think he is doing a good job making clear that some of the practices on wall street have to stop. host: barre in california. caller: i really appreciate his work on this problem. peop

how do you think chrysler and gm are doing now?e us the state of business today. >> gm i think is doing quite well. they'll soon report their third quarter profits. they made a profit in the first two quarters of this year for the first time in three years. their market share is holding up. their numbers are very good and they're going to go public some time in november. and that's going to be a seminole event in showing how successful this was. >> we just spoked to the tea party political action group and he was very critical of bailouts. do you think american taxpayers will be repaid the money that they lent to the auto companies? >> we put $82 billion into this whole sector for gm, chrysler as well as the suppliers, things like that. and i believe if we don't get back all of it, we're going get very close to it. i think people are very critical of t.a.r.p. and the bailouts have no idea what the consequences would have been had we not done that. had not saved gm and chrysler, we would have had a complete meltdown in the auto sect

and chrysler is recalling about 26,000 cars and pickup trucks because power steering fluid ca leak and start a fire. it includes 2010 models of chrysler, seebring models and challenger and journey and some 2011 dodge ram pickups. dealers will replacee the fluid hoses for free. we made it easy for you to get information on all these recalls including the model numbers of graco strollers at our we be site at abc7news.com under "see it on tv." >> mike ahead with the forecast. a little foggy. >> taking longer for the sun to come out. delays at sfo, nearly 90 minutes. also gng to bring our temperatures down today. we'll talk about the basebl game forect. the chance of showers tomorrow and th rain's looking better for the weend. >> mik thank you. the new voting procedure that could have people in alameda county waiting days or even weeks for results from the upcoming election. >> the stunning information from a secret service agent, how he nearlyhot president lyndon johnson. [ female announcer ] why watch regular when you can experience the next generation of television rvice? at&t u-vse tv.

and chrysler is recalling about 26,000 cars and pickup trucks because power steering fluid can leak and start a fire. it includes 2010 models of chrysler, seebring models and challenger and journey and some 2011 dodge ram pickups. dealers will replace the fluid hoses for free. we made it easy for you to get information on all these recalls including the model numbers of graco strollers at our we be site at abc7news.com under "see it on tv." >> mike ahead with the forecast. a little foggy. >> taking longer for the sun to come out. delays at sfo, nearly 90 minutes. also going to bring our temperatures down today. we'll talk about the baseball game forecast. the chance of showers tomorrow and the rain's looking better for the weekend. >> mike, thank you. the new voting procedure that could have people in alameda county waiting days or even weeks for results from the upcoming election. >> the stunning information from a secret service agent, how he nearly shot president lyndon johnson. you can see empty nes new us? woman: who are we? chic, modern, daring dinner-party hosts. that sounds dang

chrysler is recalling, trucks they're saying on the web site the recall includes 2010 models of the chrysler and the sebring. challenger, and journey. some of these are the 2011 dodge ram pickups. if you have one of these vehicles contact your dealer. we will be back in a insanity is doing the same thing over and over again and expecting different results. insanity is doing the same thing over and over again and hoping for different results. i've built businesses. i've built a business. met the payroll. met a payroll. i enter this office beholden to no one except you. i will owe my office to no one but you. i don't owe anyone anything. i don't owe anyone anything. what's the worst that can happen? what's the worst thing that can happen? we continue coverage with the breaking news story the fire in this building. on high street kron 4 is yoli has been out there so has will tran. looking at what is happening now. >> it is too dangerous for them to be inside. they have not officially swept the building but they're pretty confident that the early three injuries. the two buildings and one on each

gm and chrysler had run out of cash. administration had given them $17 million to get them through the first quarter of 2009, but it was going to happen again. if we did not do what we did, those companies would have shut their doors. it would have been in worse because -- would have been worse because even they suppliers would have had to shut down. it would have been an economic catastrophe beyond anything that we can think of in history. host: as you were approached by members of the obama administration of working with them, there were some other economic problems facing the country. you talk about chuck schumer being a friend. so you knew this was not going to be an easy pairing, going into it. guest: no, one my name was first fleet, what happened was, members from my own party, legislature came down hard on me and said, he does not know anything about manufacturing, he is the wrong man for the job. while almost went back to new york at that time. host: toledo, ohio. fred on the republican line. caller: first of all

gm and chrysler had run out of cash. the bush administration had given them $17 million to get them through the first quarter of 2009, but it was going to happen again. if we did not do what we did, those companies would have shut their doors. it would have been in worse because -- would have been worse because even they suppliers would have had to shut down. it would have been an economic catastrophe beyond anything that we can think of in history. host: as you were approached by members of the obama administration of working with them, there were some other economic problems facing the country. you talk about chuck schumer being a friend. so you knew this was not going to be an easy pairing, going into it. guest: no, one my name was first fleet, what happened was, members from my own party, legislature came down hard on me and said, he does not know anything about manufacturing, he is the wrong man for the job. while almost went back to new york at that time. host: toledo, ohio. fred on the republican line. caller: fir

preserve and set the basis for manufacturing in america was to intervene with general motors and chryslerrd never received government funds but arguably was saved by the government's action. it has been boasting healthy profits. while ford's ability to generate revenue has been severely underestimated. true.com shows sales are up for american cars. foreign car sales remain flat despite an increase in incentives. joining me is counselor to the secretary to the treasurer, author of "overhaul." steven rattner. what kind of credibility it do those who deride the bailout have? >> i think they have less and less credibility. you laid out the case clearly and effectively. sales are doing well and are up for the detroit three. profits are back. the companies are healthy. they're beginning small car production in michigan. i think you said it very clearly. >> one thing we didn't talk about, cash for clunkers. that was an utter failure too? >> quite the opposite. not only created a huge surge in demand for cars when our economy needed stimulus but sales didn't drop off after ward nearly as much as

no good news for chrysler this year.ns at the bottom of the list with the exception of some dodge ram all the chrysler product had below average rae liability. i'm michael, 7 open your side. >> all right. one potato, 3 potato yuck. coming up here tonight. why one man is eating nothing but spud. what's the deal? [ male announcer ] with jerry bro, it's just one dishonest smear after another. and anher. just aishonest politician, trying to hide his cord of failure. the real brown plan? more spending on out-of-control state pensions. more favors for the big tehers union, blocking education reform. ore job-killing taxes and regulations. more of the same old failure om sacramento. jobiller jerry brown. always more taxe more spending, and more lost jobs. women. all of us caught up in giant fever, it's easy to overlook another sporting event. world cup for student sailors. the cup is taking place in france. about and 10 youngster from the california maritime academy in vallejo are racing. footage they sent from monday' race. the

jeep and chrysler dealers. , h bob ehrlich says he wants to fix maryland. but he increased state spending by record amounts. ehrlich raised $3 billion in taxes and fees... including property taxes... and a 40% increase in college tuition. and now he's made over $1 billion in new promises... with no plans to pay for them... except for cutting education. cuts that will lay off teachers and increase class sizes. that's not a budget. and bob ehrlich's not the kind of leader... we can trust. >>> top government lawyers from every state in the union want to know if big mortgage firms broke the law in foreclosing on hundreds of thousands of homeowners. we have more on this joint investigation announced today. >> we all have that same issue. how big is the problem? right now, jim, we're talking about the unknown. >> reporter: the problem that started the current uproar was that even though bank employees prepared the legal documents for a foreclosure in 23 states a single official has to sign the papers and make a pledge to the judge. >> the person says i have read

there are two chrysler dealers in my district being closed and i don't understand why and you have toh all this stuff. before i was appointed i was attacked by members of the democratic party from michigan on the grounds that i didn't know enough about the auto industry and they wanted someone with real manufacturing background. so congress is a tough ombre, and my colleagues found icy much more frustrating experience than i did having access to t.a.r.p. money. >> we'll be back with steve wrat rattner. >> we're dealing with companies that didn't have a handle on their own business so there was no plan and essentially we were on a very fast ticking clock of trying to figure this thing out in real time. ice 1) we've detected an anomaly... (voice 2) how bad is it? (voice 1) traffic's off the chart... (voice 2) they're pinging more targets... (voice 3) isolate... prevent damage... (voice 2) got 'em. (voice 3) great exercise guys. let's run it again. ♪ where'd you learn to do that so well. ♪ ♪ where'd you learn to do that so well. ♪ the new cadillac srx. the cadillac of crossovers. cadilla

and chrysler going under since it would have taken down thousands of independent parts supplier, but the argument that things would have been worse without it an s a tough sell. officials here admit on the bail-out and tarp they didn't get their message out this a way that americans wanted to hear it. jim? >> jim: wendell, thanks very much. a handful of fairly positive economic reports came out today. consumer spending rose by .4 of a percentage point in august matching the july increase. incomes were up a half-point. more than doubling the july figure. construction spending edged up .4 of ra point. and manufacturering activity expanded for the 14 straight month, although slower rate an august. stocks ended the week on a positive note. the dow gained 41.5. the s&p 500 was up five. nasdaq finished ahead two. more complications for nato and the u.s. in pakistan, where terrorist plot and hide from western forces. one day after pakistani officials close a key supply route, supply vehicles were targeted by insurgents. national security correspondent jennifer griffin shows us what happened

. >> and there is no good news for chrysler this year, remaining at the bottom of the list in ratings, except for some damage rams all cars had below average reliability. >> thank you. >> sure. >> u.s. department of education issued a stern warning to schools and universities. crack down on bullying or be in violation of federal antidiscrimination laws this, is after several high prof yale cases. last month an 18-year-old rutgers university student committed suicide after a roommate secretly broadcast video of him after an intimate encounter with a man. the department is reminding schools of federal obligations when it comes to cases of harsasment. >> a school where children don't feel safe is a school where children will struggle to learn. a school where children will tune out p get depressed. >> a poll found bullying surpassed kidnapping as a parent's greatest fear. >> wow. >> and there is some of tonight's accu-weather forecast. >> is there baseball weather tomorrow? >> we will. it's going to be fabulous. and game two? there is a challenging forecast. tonight a live look showing cl

the least reliable makes are chrysler, audi, mini -- audi, mini, dodge, and bmw. what's a mini?ry detroit was rocked by the recession, but since then automakers have been working hard to turn things around. >> this morning we have encouraging news that the hard work may finally be paying off. t.j. winick has more. good morning, t.j. >> reporter: good morning, rob and vinita. there are now signs detroit is back on track when it comes to the american auto industry. business appears to be rolling again in the motor city. this week general motors, ford, and chrysler are announcing a combined $2 billion investment in their michigan operations. the companies will likely add over 2,200 jobs while retaining thousands more. >> we've come through this horrible recession. we kept investing in the future. we have the products that people really do want and value, and now we're switching over to a profitable growth mode, which is great for everybody. >> reporter: it's all thanks to positive growth, competitive wage agreements with the unions, and a generous package of tax incentives courtesy

car sales stalling in september from august but gm, ford and chrysler sales up double digit from the same time last year. gm announcing a new plan to launch a full line of full size suvs, personal income rising 1/2% in rising and spending also rising in august. that's business. i'm neil cavuto. words alone aren't enough. my job is to listen to the needs and frustrations of the shrimpers and fishermen, hotel or restaurant workers who lost their jobs to the spill. i'm iris cross. bp has taken full responsibility for the clean up in the gulf and that includes keeping you informed. our job is to listen and find ways to help. that means working with communities. restoring the jobs, tourist beaches, and businesses impacted by the spill. we've paid over $400 million in claims and set up a $20 billion independently-run claims fund to cover lost income until people impacted can get back to work. and our efforts aren't coming at tax-payer expense. i know people are wondering-- now that the well is capped, is bp gonna meet its commitments? i was born in new orleans. my family still lives here.

information center, and rear cross path detection system, now available in the safety tech package, the chrysler town & country is a safe bet to make. ♪ [ male announcer ] a big day deserves a better breakfast. choose from a dee-licious lineup of our newest $5 footlong breakfast melts, like the sunrise subway melt. [ strahan ] subway. build your better breakfast. with the $2.50 breakfast combo. get a 16oz. cup of piping-hot seattle's best coffee and a savory new sunrise subway melt built fresh to your order for just $2.50. subway. build your better breakfast. is the lighting half-way decent? >> we've all seen the pictures before, the black-and-white television feed from "apollo 11" during their first moon landing in 1969. but this version of that familiar video is different. using modern digital technology, australian tech nan -- technicians removed nearly all the radio interference that obscured the original transmission. the resulting two and a half hour video remains soft and focused but far greater contrasts giving us a new look at the amazing adventure 41 years ago. >>> the battle goes on t

information center, and rear cross path detection system, now available in the safety tech package, the chryslertry is a safe bet to make. ♪ >>> here's a look at the weather in some cities across the country. in new york, cloudy, 59. miami, mostly cloudy, 82. chicago, sunny and 60. denver, sunny, as well. 80. in l.a., sunny and 79. >>> and time now for a check of the national forecast. the latest satellite picture shows thick rain clouds in the northeast, clear skies stretch from the east to the west coast. and tropical rains are moving away from southern florida. later today, strong storms are on the move through new england. sunny skies all throughout the south and cooler to the north, especially in the northeast and northern plains. >>> we're going to turn to sports now, where we begin with college football. and west virginia against south florida. the 25th ranked mountaineers lost this matchup last year but not this time. the 31-yard t.d. pass made it 10-0. check this out the hook-and-ladder play with a lateral flip and 9-yard touchdown. the mountaineers went on to win it 20-6. >>> to baseba

this was the chrysler dealer, the chevy dealer, the tractor supply company.of tuesday's election. >> i'm sick and tired of people going to congress in washington d.c. and making a living out of it while we starve to death. >> now, i believe we ought to make the tax cuts for the middle class permanent. >> we have now got both parties essentially telling a big lie with a capital "b" and a capital "l" to the public. >> cutting taxes. >> cut taxes. >> make the tax cuts permanent. >> the republican party, as much as it pains me to say this, should be ashamed of themselves. >> stahl: this from ronald reagan's old budget director, architect of the largest tax cut in american history. >> it's rank demagoguery. we should call it for what it is. >> simon: the life story can be told in one line. she does not know how to lose. but the first thing we noticed about zenyatta was not her might but her magnificence. she is quite simply the most splendid creature we've ever seen, and she's about to hit the track for the last time. it will determine her place in racing history.

he has big plans for fiat in america with chrysler tieups.e wants the same ambition and performance in italy. his widely admired by many here. but saying that fiat is better off without italy is like saying general motors would be better off without the united states. it is pretty blunt. he has said that with only strait talking will fiat stay in business. >> barack obama is facing his biggest selection test since he entered the white house. next week will see american voters elect senators, congressmen, and governors. if the opinion polls are right, it looks bad for the democrat party. our correspondent has been speaking to a glee club in philadelphia. believing ♪ >> meet the real life league club singers from the university of pennsylvania. many of them voted for the first time in 2008. they were part of the young voters to make sure their voices were heard. but i voted for obama. i agreed with his policies. there was a general sense of where the country needed to head. it was important to have more of a sense of openness. >> during his cam

weather report sponsored by chrysler. >> a quick look at your weather picture.to you. >>> want to be skinny by this weekend? there are crash diets that can help you drop a few pounds. you should know the risks before you try them. dr. jennifer ashton is going to give us the kinney when we come back. ton is going to give us the skinny when we come back. [ male announcer ] with its 43 safety features, like the parkview rear back-up camera... hi, sweetie. there you are. [ male announcer ] ...electronic vehicle information center, and rear cross path detection system, now available in the safety tech package, the chrysler town & country is a safe bet to make. ♪ discover customersl are getting five pcent cashback bonus at restaurants. it pays to switch, it pays to discover. ♪ [ female announcer ] we've got stains, down to a science. new wisk, with our breakthrough stain spectrum technology targets all the major stain groups like proteins, carbohydrates and oils. its enzymes and cleaning agents tackle a full range of stains. you'll never look at stains the same way ag

there was, relatively speaking, much, much less interest in general motors, chrysler, gmac, chrysler financial. part of that was driven by the fact that if you look at the pay packages of these wall street firms relative to gm and chrysler -- i think if i remember correctly, the top three people of the 25 that citigroup got more compensation before we arrived than all 20 -- at citigroup got more compensation before we arrived then all 25 people led gm. it was astounding. >> i think it is because americans believe that they are the people that caused all this unemployment and foreclosure, and they are the only ones still making money when everyone else is floundering. that is the cause and effect. want to thank you for your testimony. it is eliminating as usual. thank you for your public service. >> thank you to the panel. this is the third opportunity i have had to meet formerly -- formally with you. we will continue the fine work of the special master's office. >> thank you. will the second panel come forward? >> very good. i am pleased to welcome our second panel, a truly distingui

they see the auto companies, general motors and chrysler going into bankruptcy after long years of add ver sair yil relationships with united auto workers. and instead of rallying towards democrats that gave the uaw very favorable terms they're rallying towards republicans and saying if you want to have a prosperus economy, you need to cut spending and stop this pension burden on the state. >> you know, i can understand that. this economic argument in states like michigan where the vait 13% you've had a two-term democratic governor who is leaving. not very popular but let's take a state like wisconsin. the jobless rate is under 8% but you zront the same impact they have had a two-term governor not very popular. in jim doyle, but what about -- how do you explain the fact incumbent senator like russ feingold is trailing badly in wisconsin? >> you've got russ feingold won three times, trailing badly. and the mayor of milwaukee, tom ferris trailing mr. walker. i think one of the things happening wisconsin, paul, is that foreign policy is having effect. wisconsin is part of scandinavian ame

chrysler says it'll invest 600 million dollars to build smaller vehicles to replace the dodge caliber and ford will spend nearly a billion dollars to create a new assembly line for its popular ford focus. >>> black friday coming early this year. traditionally held -- the day after thanksgiving, many retailers are starting their special sales this weekend. sears, walmart and target are slashing prices today to lure shoppers in. nearly two-thirds of online retailers expect sales to jump at least 15%. >>> not even the tough economy can stop halloween. americans will spend 18% more this year on costumes, candy and decorations for a total of $5.8 million. the most popular costumes for 2010, lady gaga and her many looks and the cast of the mtv reality show "jersey shore." >>> and, can you sue mcdonald's for making you fat? in brazil you can where the court ordered the chain to pay a former employer almost $20,000 because he gained more than 60 pounds over the 12 years he spent working for the company company. the worker argued he had to eat all that fast food as part of his job as quality c

>>reporter: however gm, ford and chrysler still face overwhelming competition from german and asian manufacturers, in a market that is becoming increasingly tough and not one established brands will relinquish lightly. >>weber: it is always important that we have to set new standards. >>reporter: setting the standards means that speed and comfort will have to go hand in hand with efficiency and environmental cleanliness. >>zetsche: well, i think it is great to have a platform to show the world, there are rising confidence and growth patterns in the auto industry as well. >>reporter: but of course the real prize is asia, where massive economic growth, especially in china, is drivingdemand. it's clear cadillac sees its re-launch in europe as a stepping stone towards wealthy customers in emerging markets. >>schubert: we know that russia, the middle east, and asia are looking at what is happening in europe. so, if you are in europe and european buyers chose you, that is very important to the other markets. so - europe is kind of a base for the other markets. >>reporter: there is improvement across th

now, chrysler and ford saw sales increases of 61% and 46% respectively last month.ford was the standout, it posted a gain in september from the previous month. toyota sales revved up 17% last month, while general motors rose 11%. g.m. is now banking on its chevrolet cruze to bring in big business. the snazzy compact is rolling into dealer showrooms and consumers are snatching them up as fast as they can. experts say a success with the cruze is crucial for g.m. as it prepares for its initial public offering. diane eastabrook has more. >> reporter: we wanted to check out the cruze, but chevrolet dealer mike anderson didn't have the car, so he had to bring one in. >> we got two of them in about five days ago, and they sell almost as soon as they hit the ground-- within two days of receiving them. >> reporter: the cruze has been a huge hit for g.m. overseas, so successful it rolled out a hatchback version for europe at the paris auto show. it hopes the cruze will be a hit here at home. decades ago, the company basically ceded the small car segment to toyota and honda, p

sucking the life out of the private sector economy and they see the auto companies, general motors and chrysler going to bankruptcy after long years of adversarial relationships with the auto workers and gave the uaw favorable terms on those bankruptcies, they are rallying towards the republicans and they're saying, look, if you want a prosecutor press economy you need to cut spending, you need to stop this pension burdens on the state. >> well, you know, okay, i can understand that, this economic argument in michigan where the unemployment rah it is 13% and you've had a two term democratic governor, jennifer granholm who's leaving, not very popular. let's take a state like wisconsin the jobless rate is under 8%, 7.9%, you don't have the same impact of the auto industry. they've had a two-term governor also not very popular in jim doyle, but what about, how do you explain the fact that an incumbent senator like russ finegold is trailing in wisconsin. >> you've got the incumbent senator won three times and trailing badly. and mr. barrett's a very attractive candidate, nice man. i think one of th