Call for Resignation of GM's Lutz, Too, as Condition of Bailout

"As a matter of immediate concern, I think the U.S. legislators contemplating this bailout package should demand Bob Lutz's resignation before dribbling a single dollar into GM's leaky pockets."

-- Jim Hoggan, DeSmogBlog, 12-6-08

If everybody in America doesn't know who Bob Lutz is, they should. He's GM's denier-in-chief. Nicknamed "Maximum Bob" for being the champion of cars like the Dodge V-10 Viper and the 1,000 horsepower Cadillac Sixteen, he also gained notoriety for calling global warming a "crock of (expletive deleted)." Now, he's out front for GM as the booster for the Chevy Volt, the electric car on which the company is staking its turnaround. Good grief.

GM's Mr. Horsepower Has an Electric Conversion is how the NY Times put it.

The prospect of Mr. Lutz going green represents a sharp reversal. After all, he has often mocked environmental advocates, saying that except for "a few nuts in California," no one cared about the impact of cars on the environment.

In 2003, he described Toyota's hybrid-electric Prius as a public relations stunt -- although he admitted he wished General Motors had a similar model -- and declared G.M.'s most important car to be the Chevrolet Corvette.

That same year, G.M. showed off the Cadillac Sixteen, a four-door concept sports car commissioned by Mr. Lutz. It sported a 32-valve, 13.6-liter V-16 engine and a steering wheel logo carved out of crystal.

So when Lutz, a GM Vice Chairman, authored a piece called "Volt: The Next Phase" on the company blog and talked about test driving the car, it raised a few eyebrows -- and hackles, like Hoggan's at DeSmog.

"The obvious goal of the government support is to allow GM to remake itself. There is no reason to expect a new trick from this old dog. He should be dismissed."

Makes a lot more sense than letting Bob Lutz be the poster boy for the Volt. It is the centerpiece of GM's effort to convince America that it is working on green cars and is deserving of a bailout. The company should find a better ambassador for the low carbon future than Maximum Bob.

Forcing out Lutz may seem like a sideshow to the much bigger issues needing resolution to rescue Detroit, but if you believe in the power of gesture, maybe not. If the auto unions are willing to make concessions, GM's C-Suite ought to reciprocate by sending Lutz to pasture with much fanfare. There would be great energy in his public sacrifice, a real signal that the days of business-as-usual are coming to a end.

With calls mounting for the resignation of GM's CEO Rick Waggoner, Lutz should be on the chopping block, too.

Read More:

Should the Government Bail Out the Big Three U.S. Automakers? HuffPost Bloggers Weigh In

Comments

[LyssaBarnes]

I am not in favor of having any of them step down. I think its better for them to fix this mess.

A lot of blame has been thrown around at the bailout and loan plans for the auto industry and the banks. I would like to take this time out to remind my fellow Americans that we are all responsible for this crisis. We bought houses we knew beyond the shadows of a doubt that we could not afford. We bought big gas guzzling SUVs at the expense of the environment and our natural resources. We chose to spend money on luxuries we could ill afford in stead of paying down our debts, investing, and saving wisely. I say all of this without judgment and pure love for my countrymen. Now is the time to put our heads together, help each other, and move forward.

[Dystopic]

Speak for your self.

I have never owned an SUV, My house is paid for, and any luxury I purchase, I use my card - my DEBIT card.

[Teritt]

Good for you - the majority in this country isn't as perfect as you are though.

I didn't overbuy or take an ARM, but my house has fallen in value just like most FLoridians.
My 401k has fallen over 30% but my truck is paid off. And I do have credit card debt - although not an overwhelming amount. But I just don't see how letting Detroit fail and losing 1 out of 10 jobs is going to help our economy get out of this recession.

[larry278]

It has been said before, fire all of the big 3's execs before any of them get a cent of federal money for anything. No money till Lutz, Wagoner, et al leave ever building occupied as office space by big 3 execs with card board boxes that contain all of the personal property of each of them. The big 3 don't get any money till each site it thoroughly cleaned & fumigated for 3 days. Having restraining orders which forbid any former big 3 exec from getting within 1 mile of any building used as an office site by any big 3 firm is a good idea too.

[laplap]

DON'T INCLUDE *FORD* in your condemnation. Chrysler & GM are the basket cases, not Ford. Ford started restructuring several years ago and got credit from the financial markets on their own. FORD IS NOT ASKING FOR GOVT MONEY.

see: http://www.huffingtonpost.com/2008/12/10/ford-bailout-money-unnece_n_149824.html

[Teritt]

They aren't asking for it now - but I sure saw them front and center during the hearings asking for a line of credit.

[Teritt]

I hope you posted the same advice under all the AIG & Citi articles too (fire them before they get a cent).

I can't understand why no one is upset over the bonuses still being paid to the Wall Street execs, nor why there isn't an outcry to get them to sell their jets, give a new business plan, retool for fuel efficient derivatives (sigh).

[Medit8]

All the overpaid denizens of the auto industry, as well as Wall Street for that matter, should get the boot. They have all been living in denial, not only Lutz. One does not need to be an expert in finance or economics to know that when the company is losing money, those at the top need to scale back. Perhaps it could've averted this crisis. Additionally, when companies make outrageous profits that are only reaped by those at the upper echelons, while paying the employees low wages (or in the case of outsourcing- less than living wages) the majority of the population will not be able to participate in the marketplace. Eventually the numbers of consumers shrinks.
These wages are more than most of us will ever make- or need - in a lifetime.
GM
G. Richard Wagoner, Jr. $2, 050,000 salary, $14,415,914.00 total compensation
Frederick A. Henderson
Vice Chairman/C­OO/Preside­nt $1,279,167.00 salary, $7,608,011.00 total compensation

R. A. Lutz Vice Chairman, Global Product Development, $1,279,167 salary,
$6,894,024 total compensation
Source: http://www.companypay.com/executive/compensation/general-motors-corp.asp?yr=2008

[David Sassoon - Huffpost Blogger]

Since I wrote this piece, Lutz has come out swinging. He was on the front page of the NYT business section this morning, big color photo and all. The puff piece was called Mr. Lutz for the Defense: As Political Pressure Builds, GM Turns to an Old Lion." He was sent to the airwaves to save his boss, CEO Rick Wagoner, from the mounting calls asking for his resignation.

Lutz said: "This is the equivalent of the Incan or Mayan days when everybody would go to the top of the volcano and throw a virgin in. It's the feeling that if we make a sacrifice that somehow the gods would be appeased."

Okay, Mr. Lutz, if you're a virgin, you get to keep your job. And that goes for your boss, too. If not, it's not the gods that will be appeased, but the American people.

[Ozarks]

Lutz brought the GTO back to life and it was a dud. Lutz is in charge of the Volt development , a $40k semi-electric car. Who can afford a $40 k car even if it ran on straw? Even if GM brings the Volt to market, at $40k per copy GM will not cover development costs much less make a profit on this turkey.