Nearly Ex-GM'er Bob Lutz Tells It Like He Sees It At Detroit's APA

Bob Lutz at APA Detroit; Photo by Benko

Lutz noted facetiously that the oft-touted “wisdom of the Asians” is partly exemplified by Toyota’s building a $1.3B plant to build the Sequoia and Tundra large SUV and pickup, both of which got worse mileage than the GM or Ford counterparts.

BOB LUTZ: AN AUTO INDUSTRY UPDATE FROM THE ALPHA CAR GUY

By Steve Purdy
Photo by Bob Benko
TheAutoChannel.com
Detroit Bureau

Members of the automotive press in Detroit are not used to paying for their own lunch. But today was the exception. Bob Lutz, GM’s universally respected product guru, a guy famous for saying exactly what he thinks (sometimes to the chagrin of his employer), appeared before the Automotive Press Association for sort of a pre-exit briefing. As GM heads into what appears now to be an inevitable bankruptcy they dared not buy our lunch, I guess, but the turnout was strong.

Lutz recently announced that he would be leaving GM at the end of the year and shortly thereafter sold off his GM stock, for probably just enough to build another small pole barn for his personal car collection. No one, though, believes that Lutz will be retiring from the business altogether. That would seem a bit incongruous for a guy like him.

“I don’t intend to become a hermit or become unemployed,” he insisted. It just means he’s had enough of corporate life at GM and is ready to move on . . . again. Having spoken to us 4 years ago after he had come on board at GM and gotten the lay of the land, he said it is time for an update before he leaves.

During his speech in 2005 Lutz said one of the reasons he was willing to come on board to help with product planning and development is that GM was making “bold moves.” Today his assessment is that he was right then and he insists that GM continues with the resolve and skill to succeed and they continue making bold moves today.

I don’t think anyone would deny that Bob Lutz has left a positive product legacy at all his many automotive corporate jobs. At GM he, along with some other forward-looking execs, can be credited for changing the corporate culture to put product design back at the top of the priority list. He and GM’s design chief, Ed Wellborn, have succeeded in convincing the bean counters and bureaucrats that the best way to sell lots of cars is to build really great cars. During their tenure GM has certainly advanced the product immeasurably.

But as he made his speech GM was teetering on the edge of bankruptcy – entirely dependent on the largess of the Federal government. Some of us thought that his retirement announcement a few months ago was an acknowledgment that he couldn’t cow-tow to a government boss. Perhaps that was a part of his thinking, but only he knows for sure.

Surprisingly, Lutz touted the Federal government’s automotive task force as a step in the right direction. Having a direct and effective relationship between the auto industry and the government is a great thing for both, he said. With safety and fuel mileage standards, energy policy, subsidies for advanced technology, alternative fuels and all the other interventions by government it is crucial to have that dialog. One important thing the government should do, he insists, is establish, once and for all, an energy policy that will allow the auto industry, and everyone else for that matter, the opportunity to plan future products. It matters less what the details are, than that details be known.

Lutz bristles at the ongoing criticism leveled at the US auto makers by “pundits and talking heads” who have almost universally criticized the them for missing the boat on small, fuel efficient cars. The demand for these cars lasted for just a few months, he explains, when gasoline was selling for $4/gallon. As soon as prices went back down demand favored the broader spectrum of vehicles including SUVs and larger cars. He noted facetiously that the oft-touted “wisdom of the Asians” is partly exemplified by Toyota’s building a $1.3B plant to build the Sequoia and Tundra large SUV and pickup, both of which got worse mileage than the GM or Ford counterparts. Lutz went on to say that in a car-to-car comparison GM stacks up competitively in any category.

Speaking of new products Lutz reviewed the fresh offerings just coming out or to be available in the near future. He talked about Cadillac’s new CTS Sport Wagon, new generation SRX, the sexy CTS Coupe that was a hit at the 2008 Detroit auto show and the extended range hybrid Converj from the ’09 show. A half dozen new offerings from core brand Chevrolet includes the new Camaro, a redesigned Equinox and a bevy of small economy vehicles, And there is one new offering each from GMC and Buick. When asked by this reporter whether he was comfortable with GM’s ability to invest in the next generation of new products he insisted that he is confident because the corporation that comes out of this current crisis will be leaner, more efficient and focused on developing the right products.

What about Pontiac? We recently experienced a new offering from the doomed Pontiac brand – the cute and sporty little Solstice Coupe. The Solstice and Saturn Sky roadsters were a tribute to Lutz’ love of sports cars at GM. Since the Pontiac brand is going away, Lutz revealed, only 1,000 Solstice Coupes will be built and he has one reserved for his collection. That leaves only 999 for the rest of us.

At age 76, with more than 45 years in the auto business holding top executive positions at GM, BMW, Ford and Chrysler, Bob Lutz hasn’t lost a bit of his intellectual acumen or his enthusiasm for the automobile business and its products. Tall and handsome, with erect posture and barely a hint of stiffness in his gait he still flies his commuter helicopter to work and flies his Czechoslovakian MIG trainer for fun. His sprawling, beautiful estate in Southeast Michigan, over which his pretty wife Denise presides, is filled with beloved dogs and a couple-dozen collector cars.

I can’t imagine how he has time to enjoy it all and still continue to be a major force in the business, but I don’t expect we’ll be seeing any less of him in the years to come.