AND 
Bob Lutz to Retire
GM Vice Chairman Bob Lutz is the father of the Chevy Volt. He is an outspoken colorful, what-you-see is what-you-get kind of guy. A veteran both of the Marines and the automotive industry, he has been the source not only of the Volt itself but many of the most interesting and important quotes along the way of its development.
Today GM announced that the 76 year old Mr. Lutz will be retiring. On April 1st his position will change from GM Vice Chairman – Global Product Development to Vice Chairman and Senior Advisor. Tom Stephens who is GM VP of Powertrain will assume Mr. Lutz’ current role.
Then, at the end of 2009, Mr. Lutz will retire.
On his blog today Mr. Lutz wrote a post entitled “You’re Not Rid of Me Yet.”
With respect to the Volt he said the following:
There has been speculation that I would stay until the debut of the Chevrolet Volt next year. When I do retire at the end of this year, the Volt program will be well on its way to launch and I’ll feel the same sense of pride and accomplishment that the entire Volt team will feel when the first ones are silently rolling off the assembly line.
He also told reporter Jamie LaReau of Automotive News:
We will be driving finished Volts this summer because we’ll have a lot of them through the tail end of this year and next year. So in terms of low-volume production, we’ll be producing them, we just won’t be selling them. As far as I’m concerned, the Volt is done.
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February 9th, 2009 at 1:55 pm
GM’s New Viability Plan
1.) Make Lutz ‘retire’
2.) Cash gov’t checks
3.) Auction off pink tie for big bucks
I kidd, but this day is long overdue.
Lutz did some great things, and he certainly had his day…but none of them where in this millenium unfortunately. Hopefully this is the end of vehicles like the Cadillac Sixteen, Solstice/Sky, G8 and the Converj. The company needs new direction, hopefully this Thomas Stephens fellow can give them some…although he feels like another of the ‘old crony’ brigade…after all he joined GM 40 years ago, how fresh could he be? (And the dude knows how to get PAID)
Random Stats on his replacement Mr. Stephens:
Age: 60
Joined GM: 1969…as a hourly worker
Formerly the ‘#5 man’ at GM, title of Executive Vice President,
Global Powertrain and Global Quality
Chairs GM’s Energy and Environmental Strategy Board
Salary & Options (2007):
Total Annual Cash Compensation $1,293,000
Total Short Term Compensation $825,000
Other Long Term Compensation $1,589,023
Total Calculated Compensation $4,944,167
Official Bio:
http://www.gm.com/corporate/investor_information/corp_gov/bios/stephens.jsp
Good luck in whatever you do Bob. I will give him his do, and say he is one of the ‘coolest’ auto execs of all time…and just a fun guy.
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February 9th, 2009 at 2:04 pm
I agree with Statik. Bob Lutz was a “car” guy no question and he pushed some of the “coolest cars” ever built. Good luck Bob!!
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February 9th, 2009 at 2:05 pm
Timing is just a bit ominous, for my taste.
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February 9th, 2009 at 2:12 pm
“silently rolling off the assembly line”??? If we have anything to say about it, there will be MUCH fanfare.
Regardless what you think of Lutz he did get the ball rolling on this. It may have been a bit late for our tastes, but still well ahead of most automakers announced plans. I’m ambivalent about this departure but I bet he’ll be there when the first production models come off the line.
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February 9th, 2009 at 2:15 pm
#3 Jackson says:
Timing is just a bit ominous, for my taste.
=========================
Thats two now in a week.
Percy Barnevik, a long, long time board member took off…might foreshadow some serious shakeups coming down for ‘Euro GM/Saab’ (he was born in Sweden).
Side note: Having Lutz away from the media/bailout kafuffle will certainly not be a hindrance to them. Some of his opinions are certainly in conflict with a lot of politicians.
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February 9th, 2009 at 2:18 pm
Good luck Mr. Lutz, I do appreciate your contributions to this project as far as I understand them anyway…
Hey, maybe GM can list this as a cost-cutting measure when they head back to DC ??
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February 9th, 2009 at 2:22 pm
Thank you for the Volt, Mr. Lutz
Be well.
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February 9th, 2009 at 2:23 pm
Statik #1, you mentioned the Solstice in a bad light.
You are not the only one.
I think that is one sharp looking car. Did it have problems?
EDIT: 2009 version is ugly, IMO.
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February 9th, 2009 at 2:29 pm
#8 Rashiid Amul said:
Statik #1, you mentioned the Solstice in a bad light.
You are not the only one.
I think that is one sharp looking car. Did it have problems?
===========================
No looks great. Some people love the heck out of them…but after you got by the ‘first wave’ of buyers, there was no case to be made for future sales, or mass adoption/other applications of the line.
On top of that, the problem was that it was design as a pet project for Bob, he basically touted them as a ’show car’ for Pontiac, and the Sky as a ’show car’ for Saturn. He premised they would revitalize the brands…not so much.
The Kappa line/platform was a hastily created thing, with no thought to viability (hydroformed frame rails, very, very labor intensive, not adaptable, etc) …and they lost/lose a fortune on every one they sold/sell. (Estimates put the loss at over 10K a copy)
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February 9th, 2009 at 2:37 pm
Good luck to you Bob and thank you for all of your efforts to make the Volt a reality!
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February 9th, 2009 at 2:38 pm
I just went back and read the end of the last thread. Lots of folks find the timing ominous, and I think, with good reason. There are a lot of comments there that sound rather like, “So long, and thanks for all the content.”
Has the iceberg finally been sighted? Is Bob running for the lifeboat deck with a wig and a skirt? Too early to say, but we know things can’t continue at GM much longer without some financial trauma of the first order.
It’s a cinch Wagoner thinks that GM is unsinkable.
Will the Volt ever actually be built? Even if it turns out to be a “false dawn,” it doesn’t mean that dawn will never come.
Whatever happens, best or worst, GM has opened a door; and Bob Lutz will forever be remembered in the story of the automobile’s electrification.
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February 9th, 2009 at 2:38 pm
#8, Rashiid Amul,
The Solstice (and Sky) didn’t make any money. There’s no evidence of a halo effect, either.
#1, statik,
+1
—
Lutz has an entry up on FastLane (faslane.gmblogs.com), titled, “You’re not Rid of Me, Yet,” but it refers to the year it will take to phase him out, not an indication he’ll stay through Volt launch.
And I could have sworn he said he would stay through the Volt launch but he terms that as “speculation” that he would stay through Volt launch.
For those wondering, I don’t think this ends the Volt program. GM’s in too deep. Bankruptcy could kill it, though.
—
Bob Lutz,
If GM gives you a check, cash it really, really quick. I mean really, really, really quick.
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February 9th, 2009 at 2:43 pm
#9, Statik,
I had also heard the $10K loss figure, from sources I respect.
I’ll say this for it, though, the styling on that was bold. The first time I saw it, I thought, “Wow!” But the market for these things is, under the best of circumstances, insignificant and the Solstice had some disadvantages that the Miata didn’t (like the near complete lack of trunk space and the fiddly top).
—
Lutz would have been a great GM “Car Guy” in 1963 or so. Today, not so much. He couldn’t harness his passion for muscle cars and bold styling and turn it into family sedans that would sell.
It’s really too bad he didn’t retire before committing GM to the New Camaro. That’s going to lose money, too.
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February 9th, 2009 at 2:49 pm
The G8 is an great car I drove one, I am going to buy one.
The Sky looks great too.
All the LUTZ designs are very good.
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February 9th, 2009 at 3:05 pm
Static is doing cartwheel’s right now hey….
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February 9th, 2009 at 3:11 pm
#1 Statik,
Gee, I thought Bob also had a great deal to do with the new Malibu and CTS, both award winning vehicles.
Anyway, the jury is still out on the Volt and the Converj, as neither is yet in production. And if these programs are successful, we will say that Bob Lutz definately had a major hand in the electrification of the automobile.
Personally, Bob, I’d like to thank you for bringing some excitement back to GM, and for being such and interesting and entertaining speaker. I look forward to your work in 2009 and hope you have an enjoyable retirement. I will still look forward to your commentary from time to time, as I’m sure you won’t be completely gone from the automotive scene.
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February 9th, 2009 at 3:14 pm
And just when I start asking for a new subject, Lyle does his magic. Thanks, Lyle.
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February 9th, 2009 at 3:20 pm
He can easily be replaced (outsourced) by an engineer from India at 1/100th. the salary. Won’t even have to waste an H2 Visa. The new guy can tele-commute.
GM can then use it as a feather in their Government report in March.
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February 9th, 2009 at 3:26 pm
#5 Statik
“Some of his opinions are certainly in conflict with a lot of politicians.”
————
And I say “Thank God for that”. My opinions are in conflict with a lot of politicians. Bob Lutz is a real car guy and one not easily forgotten in the car world. Problem is these measly politicians are going to be hard to forget in the car world also. To our ever loving shame and regret. Good luck, Bob, where ever you go and at what ever you do.
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February 9th, 2009 at 3:36 pm
I said enough about this on the last thread. In the words of the late, great, Jim Healy:
“Comment……………………………………….No Comment”
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February 9th, 2009 at 3:43 pm
The guy is 76 years old. How long did you expect him to work????
I sure as heck hope I am not getting up to go to work at that age….
Enjoy your retirement, Bob.
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February 9th, 2009 at 3:49 pm
Bob Lutz laid out the design and plans for many new cars while working at GM (twice), Ford and Chrysler. I don’t know how much we can contribute success or failure of those plans to Bob alone. He had successes, yes. And failures, yes. But Bob was not the only one responsible for successes and failures. We don’t know all the inside story about those. But, he will, of course, be “branded” with each of those successes and failures as though he was 100% responsible. That is just how it is in any business. The lead man gets the acclaim for the successes and the blame for the failures. Bob is a big boy and I bet he can take it. Semper Fi, Bob, from one Marine to another. I wish I could have known you “when”.
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February 9th, 2009 at 3:51 pm
#1 statik:
As to Mr. Stephens “compensation”, the only word that comes to mind is “obscene”. I mean, they’re broke. Clearly, the demise of GM cannot be laid solely at the feet of the UAW. This culture of “entitlement”, even in the face of impending financial ruin, leads directly thereto, IMHO.
It also leads directly to militance on the part of the workers. I mean, if these guys are going to take millions of dollars out of a dying corporation, why shouldn’t the workers follow “management’s” clear example, and try to get as much as they can as well?
Never mind the poor public, which is being asked to clean up their mess, or at least perpetuate their broken corporate model for a few more months or years, with its tax dollars.
As much as I love GM’s historic cars, and it’s history of corporate achievement as well, it looks more and more to me as if these guys are going to get exactly what they deserve.
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February 9th, 2009 at 4:14 pm
#23 Noel Park
“It also leads directly to militance on the part of the workers. I mean, if these guys are going to take millions of dollars out of a dying corporation, why shouldn’t the workers follow “management’s” clear example, and try to get as much as they can as well?”
————————–
I have to agree with you. It is a disgrace for corporations to pay the “top brass” so much. But, it is a case of bad corporate boards that basically are saying to management, “You scratch our back and we will scratch yours”. I don’t agree with wage controls, but in cases like this (not just GM) I could find myself supporting them with enthusiasm. But at the same time we need to look at what congress gets in its benefit package. That is another obscene figure when we are all hurting.
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February 9th, 2009 at 4:22 pm
It is really time we demand congress to get on the same retirement package as the rest of us have – social security and medicare. We should demand removal of all the fringe benefits they receive. Let them receive pay equal to their state’s average wage for salaried employees. Well, maybe not that far, but something needs to be done. I don’t mind paying a congressman or senator $150,000 or so, but that is as far as it needs to go. Trim the fringe benefits down to $0.00 and watch them like a hawk. Make them put any businesses they own in a trust while serving and prosecute them if they work towards or vote for laws that give their business grants, loans or contracts. I mean we should get tough with the crooks whether they work in private business or are elected to office or work for the government. And I mean TOUGH!!!!
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February 9th, 2009 at 4:36 pm
More whining from Statik – what a surprise ! OF COURSE he didn’t mention the Malibu and the CTS, which are both being judged with the best vehicles in the world in their catagory – let’s give “Maximum Bob” plenty of credit for the good things, too. The Buick Enclave has been critically acclaimed, also. Go
easy on the Solstice and Sky – they were beautiful cars that just couldn’t capture enough volume to gain traction ( they outsold the Miata, though Statik neglects to mention that as well … ).
GM has been in deep trouble for a long, long time ( if you want to blame somebody, let’s start with Roger Smith ). The fact that Lutz hasn’t been able to save them in his short tenure is hardly shocking to anyone that understands the industry ( I guess that’s Statiks’ excuse … so be it ). In retrospect, history will be a far fairer judge than some of the trolls on this board. BTW – the fact that this board is even HERE is a tribute to Lutz and his vision for the Volt.
Unfortunately, trolls appear to be a fact of life these days.
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February 9th, 2009 at 5:00 pm
#26 Guido
I’ll not rebut you (or others who are clearly very ‘passionate’ about this subject), I realize a lot of people have strong feelings for Bob/GM.
So if you want to try and spin that I am wrong, or even the Solstice and Sky are getting the job done, and Bob has been a great exec, go for it.
If putting me down at the same time tickles your fancy, I will also not take offense. (Although, I have no clue why you are talking about me not mentioning the Miata…not sure what that has to do with the price of cheese).
As for history being a fairer judge…that book has already closed. We clearly are drawing different conculsions.
/have a good one
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February 9th, 2009 at 5:01 pm
On executive compensation.
Thomas Murphy (arguably) seems to be the last GM CEO with an overal positive track record.
He made $422,000 in 1980
That’s, what, about 1.8 million in todays dollars. And Wagoner’s been making . . . $16 million.
Something’s definately wrong here.
Top G.M. Officials Earned Less in 1980
http://query.nytimes.com/gst/fullpage.html?res=9A0CEFD61E39F93BA25757C0A967948260
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February 9th, 2009 at 5:05 pm
Bye Bob, thanks for the VOLT!
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February 9th, 2009 at 5:08 pm
Lutz did get the Malibu and CTS built, (I doubt building 60,000 CTS a year will be enough to save them, maybe the profit per caddy is high enough, tho) as is noted earlier, these cars might be the only reason GM limps along long enough to launch the Volt.
Just saw a report that Toyota is saying stories that the plug in prius coming in 2010 will get 65 mpg were not backed by Toyota. Maybe they will, maybe they won’t. Bring ‘em on, if it has a plug it will help, even if it is a PHEV10. I drive less than 10 miles almost a hundred days a year. As buildings and businesses install plugins, a PHEV10 can act like a PHEV20, and the Volt owners will have to intentionally leave the car unplugged every once in a while to use up the gasoline before it goes bad.
http://gas2.org/2009/02/08/toyota-reports-that-the-plug-in-prius-gets-65-mpg-are-wrong/
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February 9th, 2009 at 5:32 pm
The future of Automotive Executives?
Maybe they’ll sound like this:
Interview with Marques McCammon, CMO, and Steve Fambro, Co-founder and CTO of Aptera
http://www.evcast.com/igroops/evcast/blog/VIEW/00000001/00000174/EVcast-156-Interview-with-Aptera.html
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February 9th, 2009 at 5:41 pm
With top executive pay capped at $500,000, many might be thinking of retirement.
http://www.npr.org/templates/story/story.php?storyId=100272809
THANK YOU Mr. Lutz for the VOLT. I hope you request one as a retirement bonus!
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February 9th, 2009 at 5:42 pm
#26, Guido, “Go easy on the Solstice and Sky – they were beautiful cars that just couldn’t capture enough volume to gain traction ( they outsold the Miata, though Statik neglects to mention that as well … ). .”
The idea of the car business is to make money. The Sky and Solstice weren’t doing that. One of the responsibilities of the Car Czar is to point out projects that are not stylish or even beautiful but profitable. Case in point would be the minivan… ugly but Chrysler sold bargeloads of them.
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February 9th, 2009 at 5:51 pm
I agree with Lutz. The Volt is indeed done.
Now, where will I turn to to buy an electric car?
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February 9th, 2009 at 6:06 pm
on the $10k loss for each solstice…
i too heard that gm built those with roughly $10k loss… BUT…
i think it only applied to the base stripped out version offered at $19999 for the sake of offering a roadster in 2006 below $20k, remember thoses advertizing comments from Mr. Lutz himself. Not so sure the $10k loss could apply to all solstices, most and i mean MOST solstice were sold almost fully loaded with and inflated price tag well above the cool $19999 advertised. I currently own a 2006 solstice( base with no option at ALL! ) I fully enjoy and really love that car but when i go to some solstice owners reunion, everyone is amazed a the fact that my car is so stripped of options. everyone else is almost fully equipped.
apply this $10k loss to roughly 2-4% of the solstice fleet if you now beleive that they were able to still make a profit while selling the other 96%-98% of the almost or fully loaded solstice with $10k-$15k added to the base price for the options.
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February 9th, 2009 at 6:06 pm
Adios Maximum Bob.
Today’s auto world is a different beast. You build cars using supercomputers these days. You can simulate entire engine components and run them in every possible scenario before it ever reaches the assembly line.
Cars are just commodities. Hopefully soon, you will be an entire car using only robots in minutes (no union employees need apply). And these future iRobots don’t take breaks, do not complain about overtime and need no health insurance. It’s coming…stay tuned.
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February 9th, 2009 at 6:09 pm
Mr Lutz did a great job of taking a company producing boring cars and creating a new sense of excitement about design, about quality, and about enthusiasm. He also spoke boldly, generally blurting out the truth as he saw it, which made him worth listening too. Along with many others, I’ll miss him.
And thank you Mr Lutz for launching GM on the path of Volt and Voltec. It may work, or it may not, but it is an exciting enterprise.
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February 9th, 2009 at 6:14 pm
ah, one more thing…
last year when the canadian $ was at par with the us dollar,
a base stripped out solstice sold for roughly $20k-$21k in the us.
a us gxp went for $32k-$34k
A BASE STRIPPED OUT SOLSTICE SOLD FOR ROUGHLY $27-$28K IN CANADA.
A CANADIAN GXP SOLD FOR $42K-$44K CANADIAN $
this pricing difference with an even exchange rate…
we ,as canadians, certainly did not make money on theses shaddy deals…
GM of canada shafted us… AND made quite a lot of money by not adjusting the prices to reflect the even exchange rate that was stable for roughly a year and a half
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February 9th, 2009 at 6:45 pm
meanwhile at Ford:
Ford’s First Electric Car is a Delivery Van
http://blog.wired.com/cars/2009/02/not-too-shockin.html
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February 9th, 2009 at 6:47 pm
This guy know a lot about cars, that’s it, he does not know customers and a lousy manager. He deserves eggs and shame!
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February 9th, 2009 at 6:57 pm
Hmmmm….April 1st.
Maybe its just a coincidence, but April fools day? Maybe, this is just a joke, and Bob is playing stand up comedian to lighten up all the tension in the auto markets? Ok, just a thought….
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February 9th, 2009 at 7:32 pm
Bob Lutz is an extremely senior executive of a corporation which is in worse shape than when he arrived, on the verge of bankruptcy, and begging hat in hand for handouts from the taxpayers. What’s the question again?
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February 9th, 2009 at 7:42 pm
.
Bob, thanks for getting GM on the right track years ago.
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February 9th, 2009 at 7:49 pm
thanks for running GM into the ground, don’t spend your bonus all in one place
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February 9th, 2009 at 8:03 pm
#35 saolsticeman said:
on the $10k loss for each solstice…
i too heard that gm built those with roughly $10k loss… BUT…
i think it only applied to the base stripped out version offered at $19999 for the sake of offering a roadster in 2006 below $20k, remember thoses advertizing comments from Mr. Lutz himself. Not so sure the $10k loss could apply to all solstices, most and i mean MOST solstice were sold almost fully loaded with and inflated price tag well above the cool $19999 advertised. I currently own a 2006 solstice( base with no option at ALL! ) I fully enjoy and really love that car but when i go to some solstice owners reunion, everyone is amazed a the fact that my car is so stripped of options. everyone else is almost fully equipped.
apply this $10k loss to roughly 2-4% of the solstice fleet if you now beleive that they were able to still make a profit while selling the other 96%-98% of the almost or fully loaded solstice with $10k-$15k added to the base price for the options.
==========================================
The 10K number reported came from the average vehicle sold from the Kappa line, it worked out to be about 10K a unit…not just on the stripped down, base models. It was a average loss of the selling units (which included the much higher priced Saturn iterations).
http://www.gminsidenews.com/forums/f70/gmi-exclusive-kappa-ii-platform-axed-r-d-68685/
There of course is no ‘hard’ press release on matter, but cost overruns and significant losses have been used as a excuse to discontinue any plans for the Kappa II. Even if it was only a 10K loss on the base MSRP of the Solstice, that would still translate into huge losses, especially when you start putting discounts and incentives on top, then commissions and the cost of the financing deals on top. I don’t recall looking at any window stickers on a Solstice or Sky with over 10K of options on it…at best they might come close to breaking even on the most ‘pimp-tastic’ of models.
(Your right that GM of Canada really shafted the consumer, or priced it correctly…depending on how you look at it)
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February 9th, 2009 at 8:14 pm
Total Calculated Compensation $4,944,167
That is a below average NBA starter’s salary. A GOOD excecutive in a corporation the size of GM can be worth this money WHEN THEY HAVE IT. I hope the 2008-? compensation packages are far removed from 2007 levels, unitll they pay the government loans back.
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February 9th, 2009 at 8:30 pm
I think that new leadership which is more technically-minded always serves to more quickly advance all technical goals. Congratulations to Mr. Stephens (currently VP of Powertrain) on his advancement.
I think that the very quick technical momentum which GM has efficiently achieved with the Voltec advancements may now become even more fast-paced with fresh perspectives at the top.
I think that an entirely new set of approaches and directions which are not just a set of linear parallels, nor a set of two-dimensional roadmaps of direction, but rather an entirely new three-dimensional
“tree” of advancements in concert with entirely new efficient business relationships may most likely result with new technically-experienced leadership.
I witness this very often in very distinct ways where a shop I teach is managed by more technical ownership, and, where the pace of technical advancement (teaching advanced L-1 emissions diagnostics) immediately and quickly succeeds. That the pace of performance-success is so positively energized and fast, it is it’s own reward and satisfaction for me. I see this technical synergy as a true “critical mission” successfully happening with GM in these advancements in the Voltec technologies. And, it will only get better and better.
Dan Petit Austin TX
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February 9th, 2009 at 9:01 pm
Good Luck Bob!!
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February 9th, 2009 at 9:04 pm
Statik @ 1,
Good recap, but my client that just had his GM pension slashed–scratch that–terminated– as of March 1, 2009 will be a little upset about Bob’s total compensation package.
I will give Lutz his due credit when Volt production reaches 10,000 per year, but only then.
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February 9th, 2009 at 9:34 pm
#1 Statik
GM’s New Viability Plan
1.) Make Lutz ‘retire’
2.) Cash gov’t checks
3.) Auction off pink tie for big bucks
I kidd, but this day is long overdue.
————————————————–
Hmmm…#2 is definitely in the viability plan. The timing on #1 makes one wonder about it’s existence in the plan. And #3…GM needs to sell something that is profitable (now I kidd too).
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February 9th, 2009 at 9:40 pm
I wonder where the Volt is going under Mr Stephens. My fear is that he will bring us a return to the old boring GM style of which he is a product and seeming loyalist. I hope not.
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February 9th, 2009 at 9:57 pm
http://money.cnn.com/2004/01/06/pf/autos/detroit_gm_hybrids/index.htm
Lutz said he believes the only way a company can shoulder the extra cost of a hybrid system is by putting it on a higher-priced, higher margin vehicle such as a pickup or sport/utility vehicle. He argues that developing hybrid SUVs and pickups will have a great positive environmental impact because those vehicles can save more fuel with hybrid technology than can already fuel-efficient small cars.
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February 9th, 2009 at 10:01 pm
Well played Mr. Lutz. I hope you get the first Volt off the assembly line (gold plated of course)…
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February 9th, 2009 at 11:15 pm
Ford: Electric van in 2010
http://money.cnn.com/2009/02/09/autos/ford_electric_van/index.htm?postversion=2009020914
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February 9th, 2009 at 11:43 pm
So when’s Red Ink Rick going to “retire”?
Get the useless exec’s out of GM!
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February 9th, 2009 at 11:55 pm
Bob Lutz-
If you are reading this (I doubt it) I want to thank you again for my Solstice (I got to thank you in person at Volt Nation), for your work on the Volt and your attempt to put some American soul back into the automobile. Guys like you and me are a dying breed. We have a thirst for stylish, exciting cars with passion in a world more and more dominated by generic appliances that pass for cars. Our time seems to have past. I’m sorry that you came to GM too late, they could have used you many years earlier. Job well done.
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February 9th, 2009 at 11:55 pm
What a shame. The retirement of a legend. We’ll miss you, Bob.
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February 10th, 2009 at 12:07 am
I think RB mentioned half of what Lutz did. That is, he did bring some excitement back into the GM line. However, the more important part, and the part not mentioned, is he got GM to stop the accounting approach to car building, namely, pick a price point and then build down until the cost gives you a nice margin. Over time this produced a situation where GM had to price its cars thousands below the competition, based on design and quality. Lutz really advocated for them to change their ways and to make a quality car that was priced competitively — if that meant less margin so be it. In the long term GM will have a better brand because of his efforts.
You can see this success in the better quality of today’s GM vehicles and in some nice cars like the CTS and the Malibu.
Unlike Statik I don’t hold it against him that he had some misses with the other part of his plan, which was to bring out halo cars to generate some excitement in order to get customers to look at GM cars. I’m willing to give him a pass because you have to start developing these cars years in advance, and who could have predicted such a shift in taste. So yes, the Sky and Solstice and the G8 (which by all accounts is a very nice vehicle) and the new Camaro didn’t prove the hits many expected.
The Volt did. And it has turned into something larger than the halo car which Maximum Bob envisioned. We should all thank him for that.
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February 10th, 2009 at 1:36 am
Thanks Bob! You are going out still smelling like a rose. Brilliant!
OK, now for the important and serious detail… When is the party!
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February 10th, 2009 at 2:01 am
#58 DonC:
“…and the new Camaro didn’t prove the hits many expected.”
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The new Camaro isn’t even in the show room yet! Don’t consider it a failure until it is actually on the road. The car is fantastic! If you’ve been to any of the car shows in the last couple of years, you know that it has consistently drawn some of the biggest crowds of any manufacturer. The car will be popular. It won’t save GM though.
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February 10th, 2009 at 2:23 am
Thank you Bob for your initiative in bringing GM back to the idea of electrification of Automobile which is inevitable, and this has forced many others to take the plunge.
I am sure you will be remembered for this for a long time to come
Wish you the very best in life
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February 10th, 2009 at 2:30 am
As far as I’m concerned, the Volt is done. Bob Lutz.
The design is now frozen, from an engineering perspective it’s a done deal, so now the pays gone to crap, why not retire?
So long, Bob, and thanks for the Voltec system, and the Volt.
In other news today, Mitsubishi has released the first iMIEV here today. They plan on restricted sales later in the year. ie. if you don’t have a fleet of, at least, 200+ cars, go away. They plan on starting general sales next year. NZ is the third country in the world they have been released. Woo hoo.
Not sure my range anxiety will allow me to get one, but if GM goes down, it’s a certainty.
LJGTVWOTR
NO plug, NO sale.
/starting therapy for range anxiety next week lol.
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February 10th, 2009 at 6:39 am
Mr. Lutz may have made some mistakes, (who’s perfect?)
but he did bring us the Volt.
I am glad he got GM’s head out of the sand.
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February 10th, 2009 at 7:22 am
#58 DonC said of Mr Lutz
he got GM to stop the accounting approach to car building, namely, pick a price point and then build down until the cost gives you a nice margin. Over time this produced a situation where GM had to price its cars thousands below the competition, based on design and quality. Lutz really advocated for them to change their ways and to make a quality car that was priced competitively — if that meant less margin so be it. In the long term GM will have a better brand because of his efforts.
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Well said.
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February 10th, 2009 at 7:57 am
American executives make sooo much money because of us. Our society has drifted aimlessly into hyper-materialism and hero worship – look at the NO 1 fingers at any sports venue.
Forty years ago, men would be mortified to be taking the salaries that execs are getting today; everyone would be incensed at the thievery.
Executive compensation is an inverse measure of our moral degradation.
To quote Pogo again,”We have met the enemy and he is us.”
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February 10th, 2009 at 7:58 am
Semper fi and godsspeed Bob,
As for the Camaro over 12000 pre-sold orders I think the only mistake GM made was waiting so long to bring it out. Rumours of them putting a turbo 4cylinder in to make it over 30mpg will help also. And yes look at the Camaro body and think to yourself this would be one cool electric performance car, hmmmmmmmmm
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February 10th, 2009 at 8:31 am
“Like so many failed American executives, Lutz will not personally suffer for having ruined the livelihoods of tens of thousands of his underlings.”
http://www.thetruthaboutcars.com/editorial-general-motors-death-watch-230-how-bob-lutz-helped-destroy-g/
Nice.
Destroy a proud American institution, and then retire with a bankruptcy proof golden parachute.
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February 10th, 2009 at 10:52 am
Big ‘exit’ interview by Forbes with Lutz if your interested:
http://www.forbes.com/2009/02/10/robert-lutz-general-motors-business-autos-0210_robert_lutz.html?partner=yahootix
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February 10th, 2009 at 10:58 am
From Lutz’s interview:
“Only 5% of the public is dedicated enough and concerned enough about the environment that they will make the personal financial sacrifice to buy an electric car.”
“We’re taking the emotional element out and replacing it with the rational element. Never mind how fast the car is, or how nicely it handles, or even how much it costs. Will it help us meet fuel economy regulations? That’s going to be the driver. Everything else is going to be secondary. Other people can do that just as well as I can”
“I think the completely revamped, slimmed-down General Motors will be an almost ideal company. Of course, we’ve still got work to do to get there. It’s all very painful, and we’re really sorry about having to get these emergency loans from the government.”
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February 10th, 2009 at 11:08 am
I can’t disagree with #1 Statik more. Cars like the Sky, Solstice, Converj and the wonderful G8 (yes, I just bought one and I love it!) are great cars. Lutz had some other misfires but cool cars (or trucks) that car/truck guys love and will pay for are just as important as the Volt for a car company.
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February 10th, 2009 at 11:36 am
I hope he retires after the volt comes in sales. I hope he offers good piece of advices to the top management of GM. he was the one who believes the electrification of automobile is inevitable. cmon man lets forgive these old man for their past mistakes and lets take the future
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February 10th, 2009 at 11:48 am
#68 statik:
I’m not. Your quotes at #69 are enough to convince me that I don’t want to see it. It is quite possible to make cars with plenty of “emotional element” which will still be environmentally friendly and will sell and make money in the marketplace. That kind of thinking is exactly why Mr. Lutz needs to retire.
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February 10th, 2009 at 12:51 pm
#72 noel park
“I’m not. Your quotes at #69 are enough to convince me that I don’t want to see it…”
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Bob Lutz made exactly the same point in the interview about making exciting cars that are also environmentally friendly…The context is important. I’d recommend the article to you.
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February 10th, 2009 at 12:57 pm
I just can’t believe the Solstice bashing I am hearing here. On one hand all I ever hear is about how GM cars are so “boring” that nobody wants to buy ‘em. So GM builds the Solstice and Sky which are two of the most beautiful, sexy, cars around. These incredible machines are blessed with AMAZING “superglue” handling and turbo charged engines that blow the doors off some of the more exotic Europeans. Now I read a blog on this website that says: “Hopefully this is the end of vehicles like the…Solstice/Sky…”
Can somebody explain this to me? I am fairly confused here…
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February 10th, 2009 at 1:33 pm
Bob:
If you read this blog – I’d like to thank you for taking the lead on the Chevy Volt project, and in doing so, spark the beginning of the greatest revolution in automotive history. While it is relatively easy for a start-up to try innovative ideas and ground-breaking products – it is much harder for heavily entrenched industry. It was your willingness to take a chance and respond to the challenge from Tesla that has driven electrification from a niche, political market to mass production.
From all I can tell you are a good Marine, a good executive and a guy unafraid to speak his mind. We love your remarks on global warming! Thanks for leading General Motors out of the petroleum spiral and into the future. You will be long remembered for colorful dialogue and electrifying character. God speed.
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February 10th, 2009 at 2:02 pm
#72 Noel Park
Sorry, I disagree with you to some extent. I think Lutz was closer to the truth than many of you may want to believe. Noel, you live in California and that is like living on another planet as far as the majority of this nation is concerned. Most of us want vehicles that will get us to and from work in the style that we are “accustomed to” in the past. Sure, that is changing some, but most of the people I know could care less about hybrids versus electrics and such. Plus, saving the planet comes in a long distant 10th place behind saving their jobs, paying bills, raising their families and a number of other things. We are just now beginning to see cars that offer really good mileage, but to get one you have to give up the ability to carry a family of five with all the gear they need for vacation, etc. And no one makes fuel efficient trucks or vans, yet. A large portion of the trucks and vans purchased are for business use, not recreational or just because a persn wants a truck or van to commute to work in. Sure, too many are purchased for commuting and how are we going to change that? I know people who buy 4×4’s and never get off the hard surface roads. Stupid, yes. But, still their decision.
It is going to take many years before change can be brought out. That or we have to go through some sort of terrible crisis that forces change. Anything is possible, except expecting the average Joe to do something he doesn’t really want to do. He will resist and find ways around it if he must.
Bob Lutz has been a good force for change, lately. He did a lot of things in earlier years that advanced sporty cars, but lately he is advancing more efficient vehicles and he deserves our thanks for that.
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February 10th, 2009 at 4:33 pm
#74, Keith, “Now I read a blog on this website that says: “Hopefully this is the end of vehicles like the…[beautiful, sexy] Solstice/Sky…” Can somebody explain this to me?”
They lost money. GM is a car business. The most important thing a car business can do is make money. Losing it is not a good plan.
I was wow’ed by the Solstice, too (the Sky? Not so much). But the market for these things is small, so the investment must be sized to match. GM put too much money into this and, as reported “nearby” on GM-Volt, by Statik, GM lost about $10K/car in that product line.
Lutz put a very attractive car on the road. But almost anyone can do that, if price isn’t a consideration. What’s needed is to put a car on the road that will recover the investment and then some.
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#76, N Riley, “Noel, you live in California and that is like living on another planet as far as the majority of this nation is concerned.”
What? California isn’t part of the “real America,” Mrs. Palin?
I’ve lived in many parts of the US. California’s as real as the rest. It just gets an enviable amount of really nice weather.
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February 10th, 2009 at 8:54 pm
Thank You Mr. VOLT!
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February 10th, 2009 at 11:52 pm
Sad news indeed. If we ever get to buy a Volt, it will be because of Bob Lutz and his passionate and visionary leadership.
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February 10th, 2009 at 11:53 pm
#77 charlie h-
“I’ve lived in many parts of the US. California’s as real as the rest. It just gets an enviable amount of really nice weather.”
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True, but as a native Californian, that has traveled to all the four corners and love much of my state, I can tell you that the vast majority of the state is as real as it gets. However, there are pockets of the state that are definitely from some other planet or at least some silly part of Europe.
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February 11th, 2009 at 12:05 am
Volt Nation. Remember that? Remember what Lutz said… “Without the premium, where today if you buy a Toyota Prius you have to live to 150 to get back the premium over a conventional car.” Things sure have changed since then… what, 200 years ago?
Someone new at the helm, finally recognizing that traditional (non-hybrid) vehicles are the actual problem, is what’s always been needed. Fighting the very hybrid helping to promote change in favor of plug-in vehicles never made any sense.
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February 11th, 2009 at 12:39 pm
Remember who said this…
NICELY UNDER $30,000
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March 4th, 2009 at 6:30 am