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General Motors 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, on Bloomberg TV last Friday.

"This industry has been restructured to make money," Rattner said to Bloomberg. At 15 million vehicles a year, "they will be gushing profits." That 15 million level is expected to be reached at mid-decade, according to predictions by companies like Toyota and GM.

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 recently published a book about his experience titled: Overhaul: An Insider's Account of the Obama Administration's Emergency Rescue of the Auto Industry.

Rattner also this month had to agreed to a ban from the securities industry as a result of a Federal investigation into charges he directed over $1 million in illegal kickbacks to New York State pension fund officials while he was a partner in Quadrangle Group, the post he had before being recruited by the White House.

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.

General Motors is expected to launch its initial-public offering of stock as early as next month, while Chrysler is expected to to take itself public some time next year.

[Image: aresauburn™ | CC 2.0]

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    • 1 Second Ago
      • 4 Years Ago
      They had better make a boat load of cash. They still owe us 60 billion dollars. If they make a profit of 5 billion a year it will only take them 12 years to pay it off, no interest.
      • 4 Years Ago
      Must be nice being Rattner. You can break the law, be named head of the Auto Task Force, bank millions of dollars of a result of said law breaking, then pay a small fine to make it all go away.

      Oh, you cal also write a book. It wouldn't surprise if he's the next SEC head or Treasurey Secretary.

      Crooks helping crooks.
        • 4 Years Ago
        Why *are* we listening to this crook? Shouldn't he be in a Federal pen somewhere? Alcatraz?
      • 4 Years Ago
      7 years is the time really make me feel tired and want get a new car. It would be nice and more easy to make cars with all it’s materials recyclable or degradable.
      • 4 Years Ago
      I'm gonna catch me onna them flyin' pigs too.. ;D
        • 4 Years Ago
        Ya think this is part of their pre- IPO hype? Nah! they wouldn't do that!
        • 4 Years Ago
        ahhhhh you beat me to it !

        +1 your comment
      • 4 Years Ago
      In other news, GM and Chrysler announce a new venture to distribute really bad movies on DVD, using other people's money.
      • 4 Years Ago
      That's just a pile of dollar bills with a few 5s and 10 thrown in...someone at AB been selling pinners down at the local Jr. High??
        • 4 Years Ago
        actually, I think those are the "profits" GM and Chrysler are gushing...
        like, almost $350...
        • 4 Years Ago
        I thought someone was dating a stripper.

        MAKE IT RAIN!
      • 4 Years Ago
      How optimistic!
      • 4 Years Ago
      Lasting 2x as long = 1/2 profits.
      2x fast = scary.
      • 4 Years Ago
      Possible. CHrysler is making money with practically ZERO new product.

      Imagine when the economy gets better AND with new car/truck models!

      Ditto GM.

      Just thank goodness for Obama and Bush (yes, I said it!) for having the cajones to save these two companies by givng them LOANS!
      • 4 Years Ago
      It's incredible how many people run off at the mouth about subjects they know little or nothing about. What you see in this thread is how common it is for people to simply regurgitate the same BS they hear from others, all the while presenting them as facts. Keep drinking whatever Kool-Aid you have been and you'll stay confident that you actually know what you're talking about. Bloggers and political pundits aren't the best sources for factual information guys.
      • 4 Years Ago
      As long as there are idiots who will buy inferior products because of brand-loyalty, GM and Chrysler will sell far more cars than they deserve.
      • 4 Years Ago
      "How do you sleep at night?"
      "On top of a big pile of money with many beautiful ladies."
        • 4 Years Ago
        I'll never look at a pile of money again without thinking of that.
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