Topic: Lutz - A car guy

[TopGun]

I encourage you to listen/watch Lutz on Autoline After Hours - Show #85.  http://www.autolinedetroit.tv/journal/?p=13606  You can download the audio on iTunes if you wish.

Maximum Bob goes for it...and discusses the problems he saw at GM that he sought to fix.  He also shows how much of a car guy that he is, and hypes his book.

Bob - "When you're doing a product for customers, it helps to have people in charge who are PASSIONATE about the product and passionate about the service....Every sector of American business has been MBAd to death."

[Erik]

One of the best car guys in the industry. One of the best guys period. Too bad he didn't say around long enough to be able to experience GM's product turnaround completely.

His book will be a must read for me.

[TopGun]

I found the interview with Bob Lutz to be refreshing. It is interesting to hear someone who was an executive in a big company like GM,  recognize the importance and the value of making world class product. GM like thousands of other companies had fallen for a time in the culture of mediocrity and they paid for it. We often have the same struggle in our own work environment where mediocrity is rewarded and excellence is seen as too costly.

[/b]

Excellent observation.  Excellence takes some risk...and it's all too easy to hide behind "Well, can you guarantee that if we do A, then we'll be more successful than we are today?"..which can't be proven unless your The Amazing Kreskin.

[TopGun]

Here's another cool move he made - How Bob Lutz made four auto journalists his "Secret Weapons" at GM

http://www.autoblog.com/2011/01/25/how-bob-lutz-made-four-auto-journalists-his-secret-weapons-at/

Lutz tells me they were his secret weapons. He credits them with the reason why GM's cars are now tuned to world-class standards. These guys didn't design, engineer or develop any vehicles. That was done by GM's long-standing employees. But the journos brought an enthusiast magazine mind-set to the evaluation process to make sure there would be very little for the press to pick apart.

I fear Ackerson will look at costs more than product.

[benjarvis]

Bob Lutz comments are about GM and the auto industry but it applies to the work force in general. I had worked for companies where the President had zero passion and less then zero knowledge of the products. They were concerned about revenues and  profits on the short term mainly. Many were former salesmen recycled into company executives. So on the long run it gives what it gives. By the way I do not have anything personal against salesmen. Many of them that I knew were great guys.

[rrocket]

Here's another cool move he made - How Bob Lutz made four auto journalists his "Secret Weapons" at GM

http://www.autoblog.com/2011/01/25/how-bob-lutz-made-four-auto-journalists-his-secret-weapons-at/

Lutz tells me they were his secret weapons. He credits them with the reason why GM's cars are now tuned to world-class standards. These guys didn't design, engineer or develop any vehicles. That was done by GM's long-standing employees. But the journos brought an enthusiast magazine mind-set to the evaluation process to make sure there would be very little for the press to pick apart.

I fear Ackerson will look at costs more than product.

Here's a rebuttal to that puff piece....

http://www.thetruthaboutcars.com/2011/01/this-is-the-feel-good-article-of-the-year-if-youre-an-autojourno/



Oh....and the 4 companies Lutz last worked for (GM, Exide, Cunningham, Chrysler) all went bust....must just be bad luck, huh?  Wonder if this means goodbye Lotus too with his golden touch....

[TopGun]

Here's a rebuttal to that puff piece....

I could barely finish whole thing rrocket, the TTAC "article" is trash.

AutoBlog Article: Today Mary Barra is running PD. She’s tasked with developing new cars faster and at lower cost. That’s got me wondering if Lutz’s secret weapons can survive GM’s latest management changes.

TTAC: Nobody gives a about that but you, dude. We know the deal. Your old bar pals might need some work in the future, so you’re puff-piecing them. Classy.


TopGun:  Well surely we won't now confuse TTAC with class Mr. Baruth.  I give a crap if Mary Barra's new role threatens a process that had a hand in developing the ZR-1, CTS-V, Volt, Cruize.

The article trashes the process because the auto-journals were...um...old?  I could use one of his tricks and say Mr. Baruth is bitter because he didn't get the call.  And what does it matter WHO those journalists were, as long as the process of developing the product improved?  I don't think I'd find much of an argument to say that GM cars stack up way better than their competition than before.

Ironically, Mr. Baruth's conclusion about auto-journalism fits here - In this business, “shameless” is the mantra.

[CatsEye68]

Here's a rebuttal to that puff piece....

I could barely finish whole thing rrocket, the TTAC "article" is trash.

AutoBlog Article: Today Mary Barra is running PD. She’s tasked with developing new cars faster and at lower cost. That’s got me wondering if Lutz’s secret weapons can survive GM’s latest management changes.

TTAC: Nobody gives a about that but you, dude. We know the deal. Your old bar pals might need some work in the future, so you’re puff-piecing them. Classy.


TopGun:  Well surely we won't now confuse TTAC with class Mr. Baruth. 

Need I repeat my long-standing assertion about TTAC? Everyone knows it is the most hilariously misnamed website on the planet. They are the Al-Jazeera of auto sites.

[rrocket]

Need I repeat my long-standing assertion about TTAC? Everyone knows it is the most hilariously misnamed website on the planet. They are the Al-Jazeera of auto sites.

Sometimes the truth about GM hurts, so it's ok to have a chip on your shoulder about TTAC.  The didn't candy coat the whole GM "bailout" nor do they butt kiss when they test cars.  And I'm sure that hurts your feelings.  But they also offer praise when merited.  Even today they were congratulating GM on taking the positive step of withdrawing from their 14.4 billion loan for re-tooling.

But yea..they hate GM so much, they actually bought a ZR-1 and were giddy like schoolgirls about the CTS-Vs...

[Erik]

Here's another cool move he made - How Bob Lutz made four auto journalists his "Secret Weapons" at GM

http://www.autoblog.com/2011/01/25/how-bob-lutz-made-four-auto-journalists-his-secret-weapons-at/

Lutz tells me they were his secret weapons. He credits them with the reason why GM's cars are now tuned to world-class standards. These guys didn't design, engineer or develop any vehicles. That was done by GM's long-standing employees. But the journos brought an enthusiast magazine mind-set to the evaluation process to make sure there would be very little for the press to pick apart.

I fear Ackerson will look at costs more than product.

Here's a rebuttal to that puff piece....

http://www.thetruthaboutcars.com/2011/01/this-is-the-feel-good-article-of-the-year-if-youre-an-autojourno/



Oh....and the 4 companies Lutz last worked for (GM, Exide, Cunningham, Chrysler) all went bust....must just be bad luck, huh?  Wonder if this means goodbye Lotus too with his golden touch....

What an incredible amateurish, juvenile article. Schoolboy "journalism" at its best. Likely, he just got his panties in a wad because he didn't get chosen for the job.

If nothing else, Rich Ceppos is about the finest automobile journalist I have ever had the pleasure to read. With more than 20 years experience driving near enough anything, and a hellacious good driver too, I can't imagine a man better placed to comment on if the new vehicles GM was producing were competent or not. An absolutely inspired choice.

Chrysler was the most profitable, per vehicle, car company in the world when he was one of the top guys. He effectively ran the product side. No bankruptcy when he was there.

He was hired by GM to turn the product around, not run the company. GM's product has quite obviously been turned around. GM's latest cars are likely the best they have ever produced.

Exide was in a world of hurt when he signed up. He reorganized the company like crazy, and yes they did have to enter and be reorganized under the bankruptcy laws. But they are still in business now.

So what?

I guess BMW and Ford should be worried, huh?

[rrocket]

He was hired by GM to turn the product around, not run the company. GM's product has quite obviously been turned around. GM's latest cars are likely the best they have ever produced.

GM never had a problem selling cars before or after Lutz.  Even Lutzs "turned around" product required tons of money on the hood along with 0% financing to get them to sell.  Does that mean nobody wanted them, or were people just scared of GM cars altogether?  There was no massive increase profits for GM while Lutz was there.  His "turned around" cars actually lost market share for GM...there's no denying it. Also on Lutz watch was the seemingly rise of GMs badge engineering scheme. And while I agree that the cars now are better than they ever were, that's not saying much since they were so, so poor in the past.  This is much like Chrysler Most Improved Interior Award from the auto show.  Not to difficult to get, since in the past they were so poor.  So yea, Lutz made nice cars that didn't make any money.   

I think because Lutz is a car guy, and a cool guy, he generally gets a "pass" regardless of performance...

I'm excited to see what he does at Lotus...

[Frontier1]

hum hum.....well....toyota had another recall this week...ooops sorry wrong thread

[rrocket]

hum hum.....well....toyota had another recall this week...ooops sorry wrong thread

Yea, Ford and GM too this week.

I saw that.  I'm waiting to see if I get a notice in the mail, since my IS might be affected by the not-tight-enough fuel coupler.   I could fix it myself, but then I might not get my $250 coupon!

[safristi]

..I hate it when that happens.............................

[TopGun]

.....Even Lutzs "turned around" product required tons of money on the hood along with 0% financing to get them to sell.  Does that mean nobody wanted them, or were people just scared of GM cars altogether?  There was no massive increase profits for GM while Lutz was there.  His "turned around" cars actually lost market share for GM...there's no denying it.
.....

Malibu transaction price $5,000 higher than previous model (March 30, 2008) - http://tinyurl.com/6yqjy7k

Lacrosse transaction price $7,200 higher than predecessor (Oct 7, 2009) - http://tinyurl.com/6j4jy5q

'10 Equinox transaction price $4,800 higher than '09 and $3,900 than competitive models (Jul 2010) - http://tinyurl.com/5vmt8po

The Equinox story also underlines a $2,000 increase in GM’s overall average transaction prices. (Jul 2010) - http://tinyurl.com/5vmt8po

[CatsEye68]

No sense wasting your breath on the artic jrs...

[rrocket]

.....Even Lutzs "turned around" product required tons of money on the hood along with 0% financing to get them to sell.  Does that mean nobody wanted them, or were people just scared of GM cars altogether?  There was no massive increase profits for GM while Lutz was there.  His "turned around" cars actually lost market share for GM...there's no denying it.
.....

Malibu transaction price $5,000 higher than previous model (March 30, 2008) - http://tinyurl.com/6yqjy7k

Lacrosse transaction price $7,200 higher than predecessor (Oct 7, 2009) - http://tinyurl.com/6j4jy5q

'10 Equinox transaction price $4,800 higher than '09 and $3,900 than competitive models (Jul 2010) - http://tinyurl.com/5vmt8po

The Equinox story also underlines a $2,000 increase in GM’s overall average transaction prices. (Jul 2010) - http://tinyurl.com/5vmt8po

Those numbers don't disprove what I said, TopGun.  I said GM didn't post massive profits with those new cars.  And they didn't.  They lost money and eventually went BK during that period.  So while their per transaction numbers may have been higher, it didn't translate to profits.

And GM STILL lost overall market share while Lutz was there..

(btw, higher transaction price means higher interest subsidy for cars with 0% financing. Also, during that period, GM had the highest incentives in the industry)

[CatsEye68]

And GM STILL lost overall market share while Lutz was there..

Oh, go light a match under the hood of your Toyota Lexus and see if you have a fuel leak...

[rrocket]

And GM STILL lost overall market share while Lutz was there..

Oh, go light a match under the hood of your Toyota Lexus and see if you have a fuel leak...

  Sorry to disappoint..no leaks here! 

You guys STILL get your panties in a bunch even when I agree with you (that under Lutz, these are the best GM cars they've had in ages).  My point was, that this didn't translate to market share, profit and had industry highest incentives on these cars.  So while the cars may be good, something about them didn't lead to consumers wanting them more than their competitors even with giant incentives.

[vdk]

And GM STILL lost overall market share while Lutz was there..

Oh, go light a match under the hood of your Toyota Lexus and see if you have a fuel leak...

  Sorry to disappoint..no leaks here! 

You guys STILL get your panties in a bunch even when I agree with you (that under Lutz, these are the best GM cars they've had in ages).  My point was, that this didn't translate to market share, profit and had industry highest incentives on these cars.  So while the cars may be good, something about them didn't lead to consumers wanting them more than their competitors even with giant incentives.

It's momentum.. things will get worse before they get better.