GM, Chrysler Will Gush Profit at 15 Million Units, Rattner Says
General Motors Co. and Chrysler LLC will lead automakers to “gushing profits” when annual U.S. sales reach 15 million vehicles, said Steven Rattner, the former head of the federal government’s auto task force.
GM reduced costs and liabilities during its 2009 bankruptcy proceedings, allowing the company to make a profit when fewer U.S. vehicles are sold, Rattner said today on Bloomberg Television’s “Surveillance Midday with Tom Keene.”
“This industry has been restructured to make money,” Rattner said. At 15 million vehicles a year, “they will be gushing profits.”
The auto industry is recovering a bit slower than expected and eventually will return to a pace of 15 million a year, Rattner said. U.S. carmakers in September sold vehicles at a rate of 11.8 million, up from 9.4 million a year earlier, according to researcher Autodata Corp. on Oct. 1.
A pace of 15 million vehicles is needed “simply to accommodate new drivers and the aging of the fleet,” Rattner said. “It will happen, it’s only a question of when.”
Rattner, 58, led President Barack Obama’s auto task force from February 2009 until July last year, after GM emerged from a bankruptcy backed by $50 billion in government aid. He has since written a memoir called “Overhaul: An Insider’s Account of the Obama Administration’s Emergency Rescue of the Auto Industry.”
GM’s unwanted businesses in bankruptcy, known as Old GM, today won conditional approval for the largest manufacturing reorganization in history, as a judge said the rights to a potential $1.5 billion in lawsuit proceeds would be determined later.
Rattner said today the slumping global economy will test U.S. companies and create a challenge for the auto industry.
“In the short term, I think we have a cyclical recovery, certainly the auto sector and elsewhere, but the global competition is not getting easier,” Rattner said. “It’s getting harder.”
More Industry

Luxe N.C. Dealerships Change Hands
A collection of Italian and English brand franchises were handed off to the owner’s friend in the business and include the Carolinas’ only Ferrari retail stores.
Read More →
Exposure Drives Interest in Chinese Cars
At a recent demonstration, consumers had the chance to ride in a Chinese-branded vehicle, a firsthand experience that improved their perceptions and purchase intent.
Read More →
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Agent Advocate
Rob Mancuso, who comes from a long line of auto dealers, values general agents’ place in the industry and makes a case for them taking an even bigger seat at the table.
Read More →
Driving Under Distraction
Though consumers gave higher marks to new vehicles in JD Power’s most recent initial-quality poll, high-tech interference worsened, pointing to craving for simplicity.
Read More →
Affordable New Cars a Thing of the Past
More than one out of five new vehicles sell for more than $60,000, according to Edmunds. That's up 7% compared to prepandemic 2019.
Read More →
State Follows Federal Warning on Auto Ads
The Massachusetts attorney general cautioned the state’s automotive dealers to be upfront with the consuming public about their vehicle prices or risk punishment.
Read More →
Consumer Outlook on the Rise
Younger generations are feeling more positive about their financial futures and current affordability pressures than older generations, according to recent TransUnion data.
Read More →
Pennsylvania Dealership Under New Retailers
The sale of the Chrysler Dodge Jeep Ram store puts a family auto group on a leaner path as first-time dealers take the helm.
Read More →
Battery Storage Takes Priority Over EVs
U.S. automakers are prioritizing battery energy stationary storage over electric-vehicle production as the consumer demand for EVs lags the rest of the world.
Read More →