With Bob Lutz pounding the media pavement for his credibility-challenged boss, it was only a matter of time before someone really hit the Maximum-quote jackpot. Chalk up a doozy for CNN, who snagged Lutz for its “American Morning” show, and got an interview which proves why Lutz was being kept away from bailout talk in the first place. The honesty flowed like single-malt in a boardroom from the very first question. When asked what GM would do with the $15b to ensure its survival, Lutz hedges, answering “this is simply a bridge loan which will get us into the next administration, where we hope we can do something more fundamental. Because the main problem is the lack of liquidity and the lack of revenue flowing in as we’re facing absolutely the lowest, lowest car market in history, and it’s not just the domestics.” AM anchor John Roberts, smelling blood in the water, presses Lutz. “You don’t see Toyota and Honda coming to the government for a handout. But based on what you said there — that this is just the beginning — you’re going to need more money next year?” To which Lutz replies “I think that’s a reasonable assumption.” Reasonable, eh?
When asked how much more money GM would request, Lutz came up just short of saying “as much as we can wrangle.” “At this point, you know, that’s going to have to be discussed with Congress. We’ll have to see. But this is definitely a bridge loan that will solve the immediate liquidity problem,” he said. “I don’t think anybody in Congress or the president-elect assumes that this is all the money that is going to be required to bridge this liquidity crisis that the American automobile industry is facing, and, again, it all depends on how fast we have an economic recovery. Again, let me restate this. At 10.8 or 10.5 million total market, we do not have a viable automobile industry in this country for anybody.”
The final questions of the interview led to a comedic riff on the possibility of job overlap between Lutz, the original Car Czar, and a presidentially-appointed Car Czar. When asked who he would like to see as the new Czar, Lutz was somewhat confused. “Wait a minute. We don’t know if it will be a czar or overseer. I doubt whether this person would dictate the product policy,” was the initial reaction. After being reassured that yes, the Car Czar could have a say on product mix, Lutz wasn’t any less bewildered. “I wouldn’t even — other than myself? Unfortunately I’m not available because I’m still gainfully employed.” For the moment, Bob. For the moment.
If they don’t, perhaps you’d care to elaborate on how much the figure will be Bob! The truth will set you free.
Everyone go online and cue up that recent Saturday Night Live skit. They nailed the Detroit plan that will unfold……..
Again, let me restate this. At 10.8 or 10.5 million total market, we do not have a viable automobile industry in this country for anybody.
Cue ridiculous hyperbole alert. That is nonsense. 10 million cars is still a lot of cars, and would most certainly support a viable automobile industry. What it won’t support are three bloated, inefficient, poorly managed, over-dealered manufacturers with far too much dead-weight in their product lines.
Comments like this just go to show how out of touch, and unimaginative, these people are. They can’t envision anything other than the status quo. If all they can see is an either/or choice of outright failure or the status quo, how can we possibly expect this management team to lead GM forward, taxpayer bailout or not?
Aw shucks, Dean. You beat me to it by two minutes.
“At 10.8 or 10.5 million total market, we do not have a viable automobile industry in this country for anybody.”
At what point is CNN allowed to put a picture of him on-air with bold “LIAR” text stamped on it?
here comes Amtrak motors, pulling into a station near you every few months looking for another “operational” hand out!
Geez, this guy has Tourette’s when it comes to everything else, but cannot speak of the ugly truth regarding this so called “liquidity crisis”.
Thanks to the much maligned (and admittedly flawed) financial bailout banks have money to lend to companies and individuals with good credit. A record number of mortgages were written last month.
However, in sharp contrast to the rest of the 2000’s, but in line with what is required for the profitable operation of a financial institution, companies and individuals without good credit cannot obtain cheap loans. This is reality, not a “liquidity crisis”. Investors have been burned badly enough by incorrectly rated packaged sub-prime debt that we are going to be in reality for a very long time.
Between GM’s reduced market share and the recent (but here to stay) phenomenon of only those who can afford cars being able to buy them GM has no future as its present self. It will be a money loosing company until it is finally allowed to reorganize with a real Chapter 11, or until the government gets sick of it and sells it off to a BRIC country (i.e. British Leyland).
There is no use for a un-diciplined, obnoxious loudmouth with a lying problem; Lutz should be sacrificed, but along with Wagoner, not instead of him.
At least he’s honest about it. I like it about people who actually can say “Yes! I’m a crook!”
Gosh! Wasn’t there just something about Farah?
Just 2 pearls on Bob’s interview:
1) “Because the main problem is the lack of liquidity and the lack of revenue”. In other words, our main problem is that we ran out of money because we can’t sell cars.
2) “At 10.8 or 10.5 million total market, we do not have a viable automobile industry in this country for anybody.” Since Japan’s car sales last year were just 5 million cars, I guess Toyota and Honda are right now asking for a bailout from their government. Same goes for every single country in the world, since US is still the #1 car maket.
Ummmmm. Is this really news? I though it was already out there that GM would need more once the Obama administration took over.
A variation on the old joke:
“Owe the bank $100 Thousand, they own you.
Owe the bank $25 Billion, you own them.”
Baghdad Bob IS Bob Lutz.
Thanks for bringing us the up to the minute Bob “Boner” Lutz updates.
I thought the old joke was ‘you owe the bank a million dollars and you are in trouble, owe the bank a $100 million and the bank is in trouble, owe the bank a billion dollars and the taxpayer is in trouble’*
* – figures not adjusted for inflation
wasn’t what BL said the conclusion that came from everyone, congress etc that this loan would see them through until the new administartaion…..so whats the issue with him saying what everyone else has been saying….
How about a TTAC truth-teller award for Maximum Bob?
Off subject, I have not seen that photo of Farrah in many years. I remember someone told me many years ago that the word S E X was airbrushed in her hair, beginning with the S on the top of the right shoulder and the E and X above it. It does look that way.
back to the subject at hand………..
Why am I suddenly reminded of the scene where Jim Carrey is being interviewd in “Fun with Dick & Jane”?
Let’s start calling him “Detroit Bob”.
At 10.8 or 10.5 million total market, we do not have a viable automobile industry in this country for anybody.
Poor Bob I think you said it wrong. Replace anybody with everybody. This very down market is great at getting rid of the poorly performing failures, as in GM and Chrysler, the rest of the market that have a clue how to build what the customer wants will weather the storm.
The drop in demand will just get rid of the extra manufacturers that aren’t needed anymore.
It seems Bob may have been dabbling in the single malt too much. Doesn’t he seem to be half drunk whenever he is interviewed? Hilarious. He is so out of touch…but in a friendly, cutesy kind of way.
AM anchor John Roberts, smelling blood in the water, presses Lutz. “You don’t see Toyota and Honda coming to the government for a handout. But based on what you said there — that this is just the beginning — you’re going to need more money next year?”
I bet Toyondissan marketing is finally whispering to Mainstream Media “News” execs:
“Drop the Lewinski-grade softball questioning of Detroit Execs if you want a piece of what’s left of the North American Automotive Ad market after Detroit’s bankruptcy meltdown.”
I don’t even see a story here, given the multiple stages of funds they requested. He didn’t say anything new or different.
I agree with the assessment of the hubris and stupidity of the Big(ish) 3 management but the Japanese do get a lot of government help.
They negotiated long and hard with state governments and got huge tax breaks. Their wages are also lower with fewer benefits. Before the union bashers go nuts (and conveniently forget the 40 hour week and livable wages and the blue collar middleclass) there is an underlying issue that needs to be mentioned.
A brief digression:
It might be interesting to note that the Japenese didn’t want to set up factories here. It was the Big(ish) three that got the government to force them to. Their logic was that the Japenese couldn’t compete if they had to build here.
In fact, it turned out to be such a good idea that the Japanese adopted it globally. The last good idea GM ever had? This can be filed under “irony”.
But back to the elephant in the room:
Why is it that germany, france, sweden have long made cars while paying workers a good wage? It’s called nationalized health care, and our lack of it is a major factor in all this .
And if the union bashing socialist yelling contingent is getting revved up please consider where your luxury cars come from. There must be rich folks there too.
So, instead of a race to the bottom – we could – with intelligent government – provide both a living wages and competitive industries. I’d rather this than create a third world situation in what is/was the richest nation in the history of earth.
Doesn’t anyone wonder where all that money is? Shouldn’t we be angry? I’ll stop now bye-bye.
Some years ago I remember reading that the Japanese government effectively injected a bunch of cash into their automakers by taking over the responsibility for worker pensions. Now I can’t find any reference to that news on the web, but I remember it from the pre-web days.
Some of those quotes may be good enough to get the speaker committed in the 70’s. But in this decade, they’re just normal spin!
Farrah! A picture can be worth a thousand words, and that one sums up the 70’s so well; but only if you were there; heh.
I remember all the fat boys in school proudly wore their Farrah T-Shirts. It was really weird to the point that I wondered if they even made a “medium”.