and the ford motor company's turnaround i think is a great example of how bill ford and alan mulally sort of put their egos aside and worked as a team to set a vision for a company that really needed dramatic action to survive. alan mulally came to detroit and said, as an outsider, these companies have been slowly going out of business for 70 years. so to be able to get that kind of candor as a reporter and let people open up what they really saw and what was really like. they were faced with a bright lights and congressional hearings, put on the spot and forced to defend sort of the indefensible which is a company that general motors was so proud, and so prospects for so many years, coming to washington. literally begging for help from the people it had sold so many cars do over the years, the american public. to know what that was like, to hear about it, to tell it in human terms, i think it was a privilege for me. i appreciated the opportunity to cover this, this industry for almost 16, 17 years. and to get the kind of insight and to have people trust me and tell me what really hap

an entrepreneur and co-author of death by china in miami we have already shankar he has to ford motor company chair in global business management at ohio state university and in beijing we cross to doris nesbitt she's the director of the nesbitt china institute all right folks you have difference a points of view on this and i want you to show my viewers ok but first marcia people say that china is set to save the world i don't know about that but there is little doubt that over the last decade asia and china specifically has been steadily moving to the fore of the global economy and in the wake of the two thousand and eight credit crunch which shattered the western financial crisis and triggered europe's own sovereign debt crisis experts say china's role in power in global affairs is more palpable than ever growing economic might is reflected in the. some talk over beijing's capacity to contribute to the euro zone's bailout fund the decision has not been finalized the european leaders and the i.m.f. have all welcomed the prospect of an investment which could range between fifty and one hundr

. >> the major automotive suppliers in the united states, ford motor company would have been dragged down, thousands of dealer ships around the country would have closed, i mean, the ripple economic effects would have been too awful to contemplate, so it is very easy for somebody like mitt romney to say, this was unwarranted government intervention, then there are thoseith short memories who say, well, we have a private banking system, what is wrong with the normal debtor in possession procedure, why couldn't they have ge through a normal chapter 11, why did the government have to step in? hello, they forget, there was no money. the banks didn't have money, there was nobody that could finance e chapter 11 for ford or chrysler, the government was the only entity at the time that had any money, so am i forgot intervention? normally, no. >> rose: last recourse. >> yes. and if it is to avert a larger economic catastrophe at a time when the nation was already teetering on the brink of, you know, a worldwide financial meltdown, if i had been the president i would have done the same thing.

well, in some instances the credit subsidy decreases as, for example, a $5.9 billion loan to ford motor company that score is greatly decreased because we feel that ford is an ongoing stable company and that loan did what it was supposed to do. >> would the gentleman yield briefly? yes. >> just to point out on this point since the secretary put this $10 billion on the table, nowhere in the law and nowhere in the definitions does is say that is to subsidize the loss of principal. the gentleman from kansas is correct that it is designed for subsidized interest rates, loan maturity, tkaoefrpl of interest but not scene of the accident to cover the loss of principal. so, your opening statement, mr. secretary, is incorrect in asserting that it is. i yield back. >> i would agree. i want to talk about that number as well. program, or the entire not just section 1705. that $10 billion was for the entire portfolio of loans. correct? you said there was $10 billion to cover potential losses which i think we agree is not what that is designed for. it wasn't designed to cover losses. it was designed to cover

liberal arts with the artisan trades and get ready for a reveal of the newest member of the ford motor company show." i'm erica hill, along with chris wragge. >>> you may have heard congress may vote to keep pizza and frerch fry french fries on the school menu. the head of a lunch school program didn't like the nuggets, the fries, the processed, frozen foods that didn't have much nutritional value and said we are done with them, i am replacing them. now kids are eating salads. they go and pick out fruit on their own which she keeps available for them all day long and get this. it costs her less than feeding kids the old way. it's a great story and part of our american spirit series this morning. >>> elijah wood has returned to the role of mumble in "happy feet two." i think "happy feet one" did okay. >> yeah. >> we will talk to him about that and the new hobbit movie. he looks a lot better right now. >> his feet do. >>> first the latest figures show retail sales rose in october partly because americans were buying more cars. >> another positive sign in a year of recovery for the auto industry.

. >> ford motor company, 10 months ago, because we work with them, announced $600 million to upgradeplants. 1800 new jobs. they came in and announce another $600 ofmillion of investment. ge, we are bringing jobs back from mexico and china. in eastern and western kentucky. let me give you an example of what these companies think about these incentives. stevens pipe and steel. this is the senator's father-in- law's company that entered into an agreement in russell spring. new jobs, and investment of $1.1 million. let me tell you what they said. they said, the past 18 months have been the most challenging since we opened the company 36 years ago. during that time, many customers have laid off most of their employees or ceased operations altogether. therefore, it is gratifying that the governor and the legislature recognize and value the efforts of existing companies such as ours and have created and sent a programs that enable us to move forward. because of the investment program, one of our new programs, we will be hiring 25 new employees to staff this new operation right here in our h

company agreed to go to glasgow. they will develop automobile parts for-foot, general motors and ford motors. said the company would have chosen the location without tax breaks because of the quality of the school system, its proximity to western kentucky university and also the strength of the community. you've seen research that shows that some tax incentives or some revision of tax structures in states is not always the best answer to the equation. all three of your campaigns emphasized some revision of the tax structure. you've used tax incentives. mr. galbraith, you talked about eliminating business taxes. and mr. williams, you talked away with doing away with personal taxes. talk about the examples you've girch, governor. >> you don't have to take my word for it or any of these other guys' word for it. the national tax foundation which is a conservative business organization who for years, every year has analyzed the business tax structure of every state in the union. their last report out ranks kentucky 19th best in terms of business tax climate in the whole country. we are better than

a loan to ford motor company, that credit subsidies court is greatly decreased because we feel that ford is ongoing, stable company and the loan did what it was supposed to do. >> just to point out since the secretary puts $10 billion on the table, nowhere in the law, no where in the definitions does it say that that program is to subsidize the loss of principal. the gentleman from kansas is absolutely correct. it is designed for subsidized interest rates, but it is not designed to cover the loss of principal. so your opening statement, mr. secretary, is incorrect in asserting that it is. >> i want to talk about that $10 billion number. that is for the entire program, not just for section 1705. in your opening statement, you said there is $10 billion to cover potential losses. mr. barton and i both agree that is not what that $10 billion is designed for. even the $10 billion -- >> it was designed to cover the losses in the loans -- my understanding of what the credit subsidy and what the appropriate funds or fort was for in the event that we invest in these companies, some of them might

on this day in history, 100 years ago, the chevrolet motor company was founded in detroit, michigan. it was started to compete against henry ford'se 1920s. general motors acquired chevy in 1918. it's 50 minutes past the hour. ♪ ♪ ♪ [ male announcer ] the peace of mind of owning a 2011 iihs top safety pick. the all-new volkswagen passat. your doctor will say get smart about your weight. i tried weight loss plans... but their shakes aren't always made for people with diabetes. that's why there's new glucerna hunger smart shakes. they have carb steady, with carbs that digest slowly to help minimize blood sugar spikes. and they have 6 grams of sugars. with 15 grams of protein to help manage hunger... look who's getting smart about her weight. [ male announcer ] new glucerna hunger smart. a smart way to help manage hunger and diabetes. [will be giving away new passafree copiessmart. of the alcoholism & addiction cure. to get yours, go to ssagesmalibubook.com. >>> good morning to you. it's thursday, november 3rd. this is your "a.m. wake-up call." i'm carol costello joining you live from new york. it's about minutes till the top of the

and the uaw contracts that ford, general motors and chrysler have pursued with the unions here in the u.s., have gotten more affordable to the car companiesle here in the united states. >> which would be great news. >> thank you. >> thanks, guys >>> here is jeff glor at the news desk with a final check of today's other headlines for us. good morning again. >> good morning. >>> facebook has issued a warning to users hackers access some accounts apparently leaving graphic images of pornography and violence. facebook official say they are experiencing a coordinated spam attack. some users have unknowingly be tricked to pacing a bad script into their ual browser bar. some believes hackers anonymous might be behind the tack. >>> wall street protesters are back this morning in new york and allowed to return to zuccotti park one day after police ousted them from that area in lower manhattan but it's a much smaller group than before. possibly because they are not allowed now to bring in tents or other camping gear. >>> might be common in new york but into seattle anti-wall street march yesterday got out of hand. protesters confronted police who i

company had its best sales month in four years. posting a 27% gain. ford saw a 6% jump. >> sales continue to improve sequentially month after month. and we're very encouraged with that. >> reporter: general motors had weaker than expected showing. >> we're pretty satisfied with the results. continues successful strong trend we've had year to date. >> reporter: it is a turnaround from earlier this month when auto sales stalled due to concerns over the economy and supply disruptions following the japan earthquake, but analysts say it's still too soon to tell. >> we're hopeful. i think it's a good indication. people are going to make this average price of a car now at almost $30,000. so if they're comfortable making that purchase, i think other areas in their life must be, too. >> reporter: for the rest of the economy, the signals are still mixed. orders for manufacturing slowed in october, an unexpected tip fr dip from the previous month. consumers are the biggest driving force and in recent months, americans are pulled back on spending from retail to long term investments like buying homes. the jump in sales for automakers in october analysts say could be the ruflt pept up demand. >> we could ex

ford motor co's. let us know what they think. this country lost 55,000 manufacturing of -- i am sorry, 55,000 manufacturing companies in the last 10ears. and we are wondering why we have a debt problem? we have a debt problem because we do not make anything anymore. thank you. host: we will keep taking your phone calls on this throughout the first 45 minutes of this morning's show. neil irwin, economic writer, is joining us on the phone right now. he is here to talk to us about ben bernanke's upcoming fed meeting. what do you expect him to say? caller: the economy has gotten better since their last meeting. nothing great, nothing fantastic. there will be speculation on what the economy will do over the next few years. those numbers probably will not be very good at all. they will talk about communication. what the fed is aiming for in the economy and what they might do to adjust their policies, going forward. even if we hear about what they are aiming for, it will be the subject of a special policy meeting. we will get a sense of whether or not they have arrive at consensus. host: what is quantitative easing? it could the federal