What!?! Bob Lutz back at GM!
General Motors has come out of bankruptcy after a somewhat-biblical 40 days and nights of massive reorganization, as a new, smaller company more than 60% owned by the US government (that's US, as in "us").
Yet GM is stubbornly holding onto Buick and GMC, when the other two of the General's remaining "Core Four," Chevrolet and Cadillac, are all they really need and all that make sense.
It appears, though, that the vestiges of cars and trucks past aren't the only things GM is clinging to: Bob Lutz, 77, has "unretired" and will continue as GM's vice-chairman.
He will head the company's marketing, advertising and communications and have significant input on product design. In February, Lutz had said he would retire by year-end after eight years as GM's product development chief.
In an interview heard on All Things Considered on NPR Friday, Lutz told host Robert Siegel that, "We took our eyes off the ball in the '70s, '80s and early '90s," when it came to product quality.
GM Vice-Chairman Bob Lutz
Siegel naturally asked Lutz how the company might overcome more than 20 years of admittedly poor product and with a reputation and market share dropping almost by the minute, and all Lutz could offer was, "Well, none of us were here when that happened."
During the interview, he also managed to work in the usual litany of thinly-veiled anti-union rhetoric; "legacy costs" and the like.
The always-quotable and sometimes-acerbic Swiss-born Lutz, a favorite of reporters, has also been at Ford, BMW and Chrysler --- where he served as one of the top two executives along with Bob Eaton --- is an ex-Marine fighter pilot who collects cars ... and fighter jets.
He may be possibly the last remaining still-active genetic throwback to the revered and storied "GM General Manager," the men who ran the separate GM divisions as their own private car companies, battling the company's board of directors for every last penny for their pet projects -- and constantly fighting each other to be first with the best and the most. The top general manager usually became president of the company (except Chevrolet General Manager John Z. DeLorean, but that's another story).
Lutz introduces the Chevy Volt concept
But is Lutz right for this job, at this time?
With CEO Fritz Henderson fast-tracking right out of GM's bean-counting financial world, and the new chairman of the board, Edward Whiteacre, the former AT&T chief who admits, "I don't know much about cars ... but I can learn," who will stand-up for creating and producing world-class products?
I'd say Lutz ... if this were 1967 and gas was 30 cents a gallon.
In our current decade, Lutz shepherded to market the "new" Pontiac GTO and the Pontiac G8, both sales disasters because of their gas-guzzling engines. One could argue that, "Well, they were great cars but the price of oil just went crazy."
But that's the same excuse each of the Big Three have used far too often and for far too long. The GTO and G8 (and to some extent the Ford Flex with its big V6 and of course the Dodge Challenger and too many other Chrysler products) are only the latest examples of the short-sightedness and arrogance of Detroit executives.
Lutz is getting much of the credit for the Chevy Volt, an extended-range gas/electric hybrid which may hit the roads by early 2011. But its predicted near-$40,000 price tag and limited availability already has some analysts shaking their heads, especially when Honda is selling their Insight, a small hybrid sedan, for under $24,000, fully-equipped. And Ford's Fusion hybrid isn't much more.
Lutz green-lighted the Dodge Viper for production while at Chrysler
Perhaps the White House and GM should have taken note of story which came out of Louisiana just a few weeks ago. At a former GM plant there, T. Boone Pickens is among the investors in an automotive venture called VVC. When the fledgling company announced their top staff members, their design chief was revealed to be Tom Matano, formerly Mazda's chief designer and the stylist who created the Mazda MX-5 Miata, the world's most-popular sports car. Matano understands small cars, small engines and knowing what the public-at-large wants.
Why doesn't GM shock the industry and wake-up the public by finding their own Tom Matano? Or does Detroit's "Not Invented Here" philosophy still rule the day for what used to be known as Generous Motors?
Is it possible for a 77-year old gentleman to essentially do a complete 180-degree turn from his life experience and philosophy? After all, among Lutz's major claims to fame are green-lighting the Dodge Viper and the Plymouth Prowler faux hot rod.
Can Bob Lutz get the religion necessary for the 21st century automotive world?
Maybe GM's new owners should step in at this point for some major and meaningful executive changes.
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I would like to tell someone at GM they don't need electric cars they just need to make the cars they already have more fuel efficient. They have the technology but they never wanted to change the plans from the good old boys.
Example: Why do you run the air conditioning compressor off the motor? the first thing that happens when you turn the unit on, is you feel the drop in horsepower. Sooooo, find an electrical source to run the compressor, NOT the motor.
Come on, show us how smart and creative you guys really are. You don't need the little guy coming up with ideas you should have thought about years ago.
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GM thought of the EV1 almost 20 years ago and they ended-up building a much better car than even they expected -- at least some of the top execs. Many of the engineers really 'got into' the EV1 and did a great job. Many EV1 fetaures will be found on EVs, hybrids and high-mileage IC cars for decades to come, from their very shape (for better or worse) to those thin seats, skinny, tall tires and 100 other design and tech innovations.
And yeah, the electric AC systems, too, now found industry-wide ...
It's a much better company than too many of us give it credit for being ...
Steve
A year or so ago a co-worker at my previous job was talking Mustangs and GTO's for awhile (and had the money to pay cash for one) but ended up buying a Honda Civic (a sporty red 2-door, by the way). I asked him why the sudden change and he said reality set in.
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There are now as many as three generations of buyers in some parts of the country known as "Honda-only." These are folks who, if you ask them about a car called, for instance, Buick, will say, "Oh, yeah ... my uncle had one of those once and all he had was trouble with it."
Deserved or not, this is the reality for many American car-buyers.
The problem is not whether Buick (or any car, for that matter) deserves such a reputation in the marketplace --- the problem is: What do we do about it now to save (and re-create) the kinds of manufacturing jobs which built the American middle-class through the union movement?
Steve
Manufacturing jobs were created in the 50s and 60s because US manufacturers were extremely profitable. They aren't profitable now and thus are cutting workers rather than hiring them. One reason the domestic auto makers haven't been profitable this decade is because they've been crushed by legacy costs, which is the result of union bargaining and threats from decades ago.
It's much easier than that. Honda makes cars that work as cars. They have a transportation function and that's it, that's especially true of a no-nonsense model like the Corolla. A Buick OTOH is clearly designed as a showpiece. But as a showpiece it stinks. If I want a car that shows that I have it, I have to get a BMW, Mercedes, Porsche or even a Lexus. But does anybody really expect to be taken seriously for buying a Buick? Hardly.
So Buick promises to be something that it simply can't deliver (to be a luxury car). And it does not even promise to be a car that can get my groceries home. It's neither here nor there.
It's some of the poorest marketing and least focused design out there.
'we took our eye off the ball in the 70's-80's-90's..........regarding quality. gee that's just 30 yrs. at that rate my ford stock will continue to rise. do yourself a favor and hire someone from toyota or honda, and get back in the game.
Lutz was a big champion of the new Camero, which is right now beating the mustang despite supply constraints and 5000 dollar dealer markups (the factor which is preventing me from owning one right now). The Camero has been lauded as a very good care, the best in its category in both performance and value, by every automotive source I have found and manages both a 300+HP engine and just under 30MPG (29) for 23,000 dollars.
Chevy has also released a 2010 Equinox that has the best highway fuel economy of any SUV, yes even 1 MPG better then the Ford Escape Hybrid (32 vs 31).
Overall I see no reason to be upset with GMs current performance, it is definitely on the upswing. I am and will continue to be a proud GM vehicle owner with no reservations.
How much money are they losing on each Camaro? Is it closer to $4000 or $8000 per car?
:-)
An accountant can tell you precisely that number based on product costing principles.
but dont tell that in this forum. according to the posters here, it was them who led to the failure of the company !!
Why do you hate anything fun-to-drive?
The Equinox destroys the Rav4 and CRV fuel economy by 4 or 5 mpg I believe. I can't wait to see what the Cruze will get with either a gasoline turbo or diesel. I am also holding out for a Camaro, I was in a dealership recently and SSs are going for $44000 when they supposedly start at $31000.
And KTM, facts please... show me how much GM is losing on each Camaro, I dare you. Is the statistic on the Toyota blogger sheet? If you don't have factual information to add to the discussion, no need to bash with stale rhetoric.
The new Camaro is ugly. Funny how many rednek "Smokey and the Bandit" wannabes and over-the-hill baby boomers have one on order. There are only so many of them that can actually afford one in this deep recession.
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Appearance (thankfully) is all subjective and in the eye of the beholder. I like the new Camaro; if you don't, fine. Don't buy one. The truth is that Chevy will have no problem selling-out the first 18 months (maybe more) of 2010 Camaro production; like it or not, it IS an "American automotive icon" and ad hominem attacks on its buyers are just silly and way beyond the pale. And anyway --- wouldn't Smokey and the Bandit "wannabes" be waiting for a new Firebird? Get your icons right ...
Steve
I see mostly hot babes driving them
seeing them all over - the dealers can't keep them on the lots
regardless of who's buying give GM credit where its do - coming up with a product people want to buy!
GM has figured out that they are being treated as an American icon that can do no wrong and that they can come back for more... and they will.
:-)
Not only is Lutz around but Ed Welburn is still in charge of design. Mr Welburn is the guy who has stated his feeling that design by committee gives the best results. Go on youtube and watch some of the videos of Ed Welburn talking, they are funny. I'm sure he is a great guy and might be a good designer but "design by committee" will always result in terrible designs.
So I would give GM little chance of changing. They needed to fire all the executives to change. But it appears really none are gone.
Design by committee gets you cars like the Aztec
Lutz?
Say, he has just TONS of experience.
Charlie Rose's almost obsequious Bob Lutz interview a while back didn't build confidence. Lutz might have on occasion built "excitement," but he inhabits another, simpler world -a pre-globalized economy, pre-global warming, pre-Japanese-levels-of-quality sort of world. I understand car nostalgia. Bob Lutz might be a nostalgic figure to certain dinosaur-loving petrol-heads. Put him to work designing rear-view mirrors. His mind-set is not going to market GM out of its dilemma and into a sustainable future.
P.S. I'll be interested to see what Penske does with Saturn.
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I feel for Charlie. So many of the people he interviews he also depends on for financial support (well, their companies, at least). It's a HUGE danger of this Brave New News World which we're all dealing with as best we can. The future may have us all sounding like Larry King ... Sheesh!
I'm a dinosaur-loving petrol-head ... but I'm also a big proponent and supporter of all things green. Some people can't equate the two; however, in this world, there's plenty of room for us all!
Steve
Hmm did anyone think of making the G8 platform as a Chevy they do in the Middle East.
and it does have a modest displacement engine (3.6 L) with multivalves and direct injection it could have good fuel economy.
But please GM don't go back to the old GM with drum brakes, carbed big v8's, live real axles with leaf springs and recirc ball steering all for cost.....it's the new GM after all get with the program.
Darn - actually I wish they would go back to that - those were REAL cars
not these wimpy front drive econoboxes
the G8 is an awesome vehicle BTW - like most of the Aussie built Holdens - rear drive and plnty of HP
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I agree --- GREAT car. So was the Oz-made GTO. But not in large volume and not at this time. GM should be developing more than one extended range hybrid.
Steve
the best cars GM ever made was the skylark platform
the Chevelles. Skylarks, Tempest, Lemans of the lat 60s mid 70s
now those were solid cars!
Holding onto GMC?... it makes trucks and is one of it most profitable groups... Chevy and GMC trucks on low end share same assembly lines and parts...
Buick, number one selling brand in China.... 30% annual increases in sales...
Regards
GM's truck plants consistantly rank at the top of productivity for all car makers
And they keep losing money... what does that tell you?
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If people can't buy GMC trucks, they'll buy their twins - Chevy trucks. And last time I checked, we're not living in China ... They can keep and create whatever brands they like outside the US, but in the US, Buick is not necessary when Cadillac fills that bill quite nicely.
Steve
Buick is the brand loved by grandmas and grandads every where (and I mean that affectionately) with the loss of the big rear wheel sadan that can seat sixe - like the crown vic or marquis whats left is the Buick
Buick makes a solid reliable product
I did always wonder about the reducdancy bewtween GMC and Chevy trucks, other than way back in the day I believe GMC was intended to be the heavy and commercial truck and Chevy more of the consumer type. When GM sold their heavy truck div to White they shifted to being rebadged chevys. The other reason for GMC was so that Buick, Olds and Pontiac dealers could sell a truck line along with their Chevrolet counterparts
First , stop the nonsense that the Prowler was a failure...
1) It got people into the show rooms. Was featured on TV shows.
2) Its sold for the first couple of years at upto 40K over its sticker price! You had to wait in line to get one. With list prices of 37K initially that increased to 42K at the end of the planned 5 year run... not bad for a hand made car... compare to the Tesler at 120K.
3) It was a limited production car... hand built. Limited to a couple of thousand per year. It was designed to be a test of their new development centers, where by they cut time to production by half as I recall.
4) Then and now it attracts lots of attention.
5) It gave birth to the mass produced PT Cruiser and other retro look cars... TBird, Mustang, new Camero and etc. .
6) I had one for 4 years and when i sold I got almost what I paid for it. I cant recall that happening too often. It was a great car! I enjoyed it. Yes it was just a six and had an automatic.... and got 26 MPG.not too bad... Most Cameros and Mustangs sold have six's and an automatics also and a large precentage of Corvettes are automatic as well... design flaw? Hmmmm
Regards
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Who said the Prowler was a "failure?" Not us. We called it a "faux hot rod." Faux means "false, imitation." With front fenders and a V6, the Prowler was (necessarily) a faux hot rod. Chrysler should have been using their V6s in more of their cars and trucks rather than promoting their guzzling Hemi line-up. Glad you had a good experience with yours! It was one of Lutz's home runs, as was (and is) the Viper.
Steve
I always wonder who is still defending the old GM. I guess you guys are. :)
Certainly there are different opinions on design. The middle of the country I think would agree with you that GM's designs are good. But no place else thinks that way. I hate everything about GM design, even the GM logo gives me hives.
I love the 50's, 60's, and early 70's era big 3 cars. Great designs! Its telling that most of what attracts attention today from the big 3 is really just nostalgia. There isn't anything new that is attracting attention on the coasts where most people live today. But look at the Honda S3000! Or the NSX or 90's Supra!
The problem is simply that GM is still building cars that are marketed for the middle of America. But tastes have moved to the coasts as has the population. We want cars not only with curves but that can drive on a curve! The suspensions on most American sports cars is a very primative solid axil.
If GM has any chance they need to close all design in Michigan and move it to LA and someplace in SoCal. I hate SoCal but that would be the place.
Of course they won't do that and GM will fail again do to the same reason they failed before, management.
Is the author's mini-bio correct? He actually has some experience writing about automobiles?
He's complaining about GM holding on to Buick? Buick is the most prestigious brand and one of the best selling brands of vehicle in China, the market with the biggest growth potential. According to the author, GM should ditch a brand that is a market leader in the largest consumer market in the world.
When an author compares the Volt to a hybrid vehicle, it shows that the author does not understand the difference in design of the two types fo vehicles. The Volt has an all-electric drivetrain, hybrids usually have a traditional drivetrain coupled either in parallel or in series with a small electric drivetrain. Hybrids use the electric drivetrain to recapture energy with regenerative braking and eliminating idling the IC engine (basically turning off your engine at stoplights). The Volt is like a Tesla with a small IC engine and generator as an-board battery charger - nothing hybrid about it. The Prius is like the Echo with an electric motor for low-speed starts and regenerative braking on stops. To give you an idea of the difference, Prius mileage on a 30-mile round trip: 45mpg, Volt: INFINITE. Now either the Volt is skirting the laws of thermodynamics or the comparison is inappropriate because the Volt is a completely new type of vehicle.
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Thanks for the comment. GM describes the Volt as an "extended range hybrid," not me. If you have to explain the technology to the public in more than 10 words, you're not going to catch too many buyers. And I still don't understand this thought that GM should keep the Buick brand in the US because it does well in China ... If I'm ever shopping for a new car at Honest Sam's Beijing Motors, then maybe a Buick would be on my list ... GM's Opel does very well in Europe; why doesn't GM sell Opels in the US? What? Oh, yeah ... they tried that and it didn't work.
Steve
I thought I would never consider a Buick, but the 2010 lacrosse is a very good looking very respectable automobile I'm considering for a second car for my wife and myself. It continues the tradition Chevy started with the Corvette, making cars that rival (and surpass) the European brands like Mercedes and BMW in performance and quality for half the price. Right now Buick was recently rated the most reliable brand, has a 30 MPG car in the Lacrosse that is equal to or better then the 3 series from BMW in most ways for 10k less and yes, great sales in China.
Buick also shares a dealership chain with GMC and so combined they move enough product to make it worthwhile. I have a feeling with the new line Buicks sales can only go up in the US.
"We took our eyes off the ball in the '70s, '80s and early '90s," when it came to product quality.
Siegel naturally asked Lutz how the company might overcome more than 20 years of admittedly poor product and with a reputation and market share dropping almost by the minute, and all Lutz could offer was, "Well, none of us were here when that happened."
None of us were here...you were there...you just weren't present. You were pulling a McFly and living in the past.
GMs market share isn't falling at as fast a rate as the japanese brands are currently
thats because the japanese brands have much more to fall than gm....
It's a truism that no good deed goes unpunished. GM does more than any other auo manufacturer to advance electric vehicles - and was the only one to actually lease one (not Honda, not Toyota) - and they get labeled as anti-green because it didn't make economic sense. This from the same people who complain the the Volt will cost too much.
I'll give you a clue: ALL the auto manufacturers abandonded EVs when California pulled back on its ZEV requirements. They all kept the technology alive with in-house R&D, but no company but GM made any serious effort to get the car out in the market.
So why is the Volt feasible now when the EV1 wasn't? Batteries. The EV1 used lead-acid batteries and still managed a 100-mile range or so. The 2nd generation battery packs with nickel-metal-hydride batteries doubled the range. With lithium-ion and lithium-polymer batteries doubling the range even further, the battery packs can now support a full-size sedan rather than a two-seater.
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I agree with every point you make.
GM that has to STOP apologizing and snap out of their inferiority complex ... Their ads should reflect back to the old "Cadillac, Standard of the World-"type marketing --- Along the lines of, "We built the best then and we're still doing it!"
What worries me is that with only the Volt slated for production and no other similarly-outfitted GM vehicle being planned, at least publicly, it could mean that the company is not as close to overcoming the battery problems as we may think.
Steve
"So why is the Volt feasible now when the EV1 wasn't? Batteries"
I thought it was $4/gal gas.
Lutz is a genius. A true car guy that has been driving the recent product resurgence at GM. Although he’s 77 he’s about one of the only things right with GM.
A true car guy and industry follower would know this. What kind of “analyst” are you? Seems to me your spewing out all the same fallacies as all other vanilla media outlets. Wow brilliant.
Do your readers a favor and acknowledge the progress GM has made in this decade before being hammered by this banker instigated economic meltdown!
GM has changed and it had already changed without the aid of the automotive task force, it just wasn’t fast enough. The only reason Ford is everyone’s darling today and not subject to all this criticism is because they secured a 26b loan in 2006. Without it they would have been in the ditch too.
By-the-way despite main stream media reports to the contrary, there is still a lot of scientific debate over global warming so don’t burn the witch!
Yes, exactly Lutz is a car guy the kind of guys that build cars because they like to and thrive on the technology and manufacturing detroit needs more guys like him - like Iacocca, Bill Ford and others
iuts the bean counters, marketeers and MBAs that are killing the industry
its the product designers that are killing the industry along with shabby products.
what did the accountants did to this? i doubt they were cheering when loser ass GM was losing billions during the first and middle half of this decade !!
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As for global warming, you have a friend in Bob Lutz, who thinks it is "BS."
Steve
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