He was lucky. They survived. Most of his relatives did not.
He is an observant Jew. Follows all dietary laws, goes to Temple, observes all religious holidays, etc. He does this as a strong assertion that he is a Jew, he will not let anyone take that away from him. Ever.
He just doesn't happen to believe in God.
That's false.
> How could a newborn survive?
By having at least one very determined parent and an absolutely enormous amount of luck.
Have a look:
However I know that he was a Hungarian Jew. His family therefore would not have faced deportation to concentration camps until after the German invasion in 1944. According to http://www.ushmm.org/wlc/en/article.php?ModuleId=10005142 there were some children successfully hidden by prisoners in camps.
After some time with Google, I wonder whether he could have been the one born on http://en.wikipedia.org/wiki/Kastner%27s_train. (Which was indeed a cattle car on its way to a concentration camp - but the people in the car survived.) I do not know and, due to the fact that I have not seen him since I moved to the West Coast a decade ago, am not in a position to ask.