GM Car Czar Bob Lutz is calling it quits at the end of the year. Or, as they like to say in the “here’s your golden parachute; see you in Aruba” RenCen echelons, Maximum Bob “will transition to a new role effective April 1, 2009, as Vice Chairman and Senior Advisor.” In other words, we still have MB to kick around until the end of the year or the end of GM, whichever comes first. GM CEO Rick Wagoner was effusive about Lutz’ contribution to the total destruction of GM’s brands—in his own entirely reserved way. “Bob Lutz was already a legendary automotive product guy when he rejoined GM in 2001,” Wagoner’s statement says. “He’s added to that by leading the creation of a string of award-winning vehicles for GM during his time here. His 46 years of experience in the global automotive business have been invaluable to us.” Love that “car guy” stuff. Now, for some more accountant-friendly info . . .
“Concurrent with [Thomas G. Stephens, Vice Chairman – Global Product Development’s] appointment, GM is restructuring its global powertrain group to integrate powertrain functional activities into their respective global GM functions.” Parse that, Mr. Crock of Shit! I think he means that they’re still confused about what they’re building where for whom at what price and (if they’re really brave that day) why.
UPDATE: Lutz pens a farewell post, appropriately titled “You’re Not Rid Of Me Yet” over at Fastlane.
Good time to pull the ejection seat Bob.
So TTAC, how golden is his parachute?
–chuck
http://www.marketwatch.com/news/story/GM-Vice-Chairman-Robert-Lutz/story.aspx?guid={7E3A0F4A-7A25-4D8D-84CE-6CE8D965C306}
Wow. That I was not expecting.
Looks like even Lutz knows by now that GM’s screwed.
Ca we still have the Lutz Awards on TTAC?
Well, they did say they were going to cull redundant or unnecessary white-collar jobs.
Maybe Mark La Neve can go next?
He’s got a sense of timing, for sure – he bailed out of Chrysler just before the Daimler merger takeover.
I guarantee there is some clause in his golden parachute that has to do with when he declares, not just when he leaves. This must trigger a big payday for him.
He knows GM will get laughed out of DC for their “plan” next week, and C11 is sure to follow.
Git while the gittin’s good, Cowboy Bob….
I can see why he’d leave – this is Wagoner’s ship to go down with (just like Chrysler was Eaton’s). He’s probably done what he could realistically do in terms of product now on the market or soon to arrive given GM’s screwed up brand structure and inability to develop any type of coherent strategy re: the same. GM is just lurching from one crisis to the next until they eventually are forced in to C11 by the US Government to protect the taxpayer money they’ve already gotten.
So no more GM ‘car guy’?
End of the year?
in denial till the end.
Without meaning to sound bitchy, I’m not quite sure how Bob Lutz is considered to be a “legendary automotive guy”. I know that he is acknowledged as “having a hand in the creation of the BMW 3-series, but what exactly does that mean? He signed the project off? Well, an account can do that! He designed the Ford Sierra, has anyone actually seen this monstrosity?!
Yes, he’s had some good hits (Buick Enclave, Cadillac CTS, Chevrolet Malibu, etc), but he’s no Ferdinand Piech*.
* = Ferdy was one of the engineers on the Audi Quattro system, created the VW Phaeton which, despite its badge, is a great car and created the Bugatti Veyron, which is the concorde of the car world.
If nothing else, Bob has better timing than Rick. Not by much, for sure, but in the land of pygmies….
OK, i’ll say somewhere between 3-7?
That will be Lutz’s golden parachute, 3-7 million dollars.
Won’t the TARP limitation on golden parachutes apply here, since the initial bailout bucks came from the TARP fund?
…but he’s no Ferdinand Piech*
Well, the bluster and ego is there, if all of the ability.
Bob Lutz said a lot of things that a lot of industry people wanted to hear. He was really, really good at making people “feel good” even if he couldn’t deliver the results, or convince GM to do so.
The thing is, bluster only works for so long.
He’s getting out before his salary gets capped.
“Won’t the TARP limitation on golden parachutes apply here, since the initial bailout bucks came from the TARP fund?”
No, because IIRC the salary caps weren’t grandfathered. They only apply after any future money is taken.
Nice scoot Bob. Now’s you need some white shoes and belt, and a full page spread in AARP.
Hey, GM, I hear Chris Bangle is looking for work…?
so, when can we expect the same from Wagoner?
Maybe he takes a few months off then is appointed Car Czar by Obama… rofl
The last life boat has left as the “unsinkable” GM rapidly fills with red ink…
I’ll never let go Rick (Wagoner)… I’ll never let go…
Didn’t MB say he was not going to leave until the Volt was in production? I guess that means that by the end of the year, it will be in your local dealerships. And it will not have any growing pains usually associated with new technology incorporated into a vehicle.
Of course, if it does not show up by the end of the year, then his statement that he will not leave until then should be the new front runner for the Lutz Award.
I think Kurt B nailed it: GM wants Lutz to be named Car Czar, but he can’t be if he’s the product guy for GM. With a meaningless title he’s free to become the new Car Czar because ‘production car design’ won’t be in jeopardy.
Everyone (just about) is wrong. Bob Lutz is the mojo of GM. Without him GM has none. GM has no idea what to do. They now are attempting to by part of Delphi. What? GM is doomed.
As to global warming if we have it what is it with the record cold spell in the US? Twenty degrees in New York is warm?
Lutz owns a Vectrix?
Well, it would make it easier to quietly sneak out of town…
Jose C
I’m right with you on Lutz being a good thing for GM, not so much on your global warming comment though. You remember the last bunch of NY winters? The total lack of snow and spring-like weather? This year is the outlier. Local differences aren’t the point of global warming anyway, it’s the broader climate shifts that will reveal the trend (or not).
I can think a few other places where Lutz could make a positive difference though. Acura, for one, could sure as hell use someone who hasn’t spent the last decade in a civic making some product decisions. I’d also like to see him on Top Gear, kind of an American Clarkson, sent out to do battle with weedy asian cars. He’s old, but I’d bet good money he could kick Jeremy’s ass.
jolo beat me to the Volt joke.
While Bob has contributed, schizophrenically, some good design moves he blew what is, IMHO, the most important facet of a car to the modern consumer.
Reliability.
GM was making progress toward the industry average before BL. Since then they have leveled off below the industry average and maybe losing ground.
Good work Bob.
Bunter
KatiePuckrik
He designed the Ford Sierra, has anyone actually seen this monstrosity?!
I drove one from Paris to Quimper (400 miles) in ’89. I rather liked it. It was nicer than any US car of that era. Oops! I guess that’s faint praise. But it was certainly an attractive looking car imho, more so than any US car and most Japanese cars then and now and it wasn’t bad to drive.
JoseC
As to global warming if we have it what is it with the record cold spell in the US? Twenty degrees in New York is warm?
The climate involves the whole world, not just NY (or boston for that matter, which has been frigid lately). And what matters is the general trend over a period of years, not a single year. And while we may be having a bad cold spell (I dont’ think it’s a record though) southeastern Australia has had some record heat, and is suffering from terrible fires all over the place, whole neighborhoods burning, because of 115 degree temps and very strong winds.
Is that one of those little electron powered thingies Max Bob is riding in the picture?
GM US sales (2001): 4.95 M
GM US Sales (2007): 3.86 M
22% decline in sales volume, every single year less than the previous.
Yep, he really helped GM get their mojo back…
Katie: He designed the Ford Sierra, has anyone actually seen this monstrosity?!
My current car is a 1984 Sierra 1.6L. As soon as the rust spots on the roof join up, it’ll be a roadster.
The dashboard is cracking, the rust is everywhere on the bodywork, the gasket is blown, half the windows and doors don’t open, and it’s like driving a barge. But, miraculously, it still goes. That Kent engine was strong.
It was quite a daring step for Ford to produce that aero “jelly mould” shape at a time when most cars were more angular, so kudos to him for that. And I quite enjoy driving it. But they say rust is designed in, so in that respect it’s a bad design.
“Is that one of those little electron powered thingies Max Bob is riding in the picture?”
It’s a Vectrix electric “maxi-scooter”
http://www.vectrix.com
Can’t they make the end of this tenure at GM this week?
Oh, gotta have enough time to scrape up a few million “severance” for him.
Jose C: “As to global warming if we have it what is it with the record cold spell in the US? Twenty degrees in New York is warm?”
And there were record highs in the Dakotas last week and we tied a record high here (MN) the weekend before last.
—
Lutz has an entry up on FastLane, of course, and there’s tear-filled replies.
fastlane.gmblogs.com
titled:
“You’re not Rid of Me, Yet.”
jolo: “I guess that means that by the end of the year, it will be in your local dealerships. And it will not have any growing pains usually associated with new technology incorporated into a vehicle.”
…and GM certainly wouldn’t think of prematurely releasing a model with new technology and letting its buyers be beta testers, would it?
An excerpt from the Fastlane entry..(bold is mine)
“You’re Not Rid Of Me Yet
By Bob Lutz
GM Vice Chairman
By now you may have heard the news that I have given up the duties of leading General Motors global product development.
Please note that I relinquish these responsibilities secure in the knowledge that the guiding philosophy of pursuit of absolute product excellence is now firmly embedded in the organization. That unquestionable fact made a very difficult decision much easier for me.”
mikey610 :
GM US sales (2001): 4.95 M
GM US Sales (2007): 3.86 M
22% decline in sales volume, every single year less than the previous.
Yep, he really helped GM get their mojo back…
Pretty much says it all.
He has done some things that are positive for enthusiasts.
However, though we often forget it, we are not the center of the auto-buying universe and GM needs more than niche market thinking.
I stand by the idea that superior reliability is the key. The major companies that have gained market share in the last few decades have had it. Those losing market share have not.
Also worth noting, the only member of the Debt 3 that seems to have stabilized their share is Ford and they are the ones who have greatly improved in this area.
Bob’s primary mission had to be to gain profitable sales. He failed.
Failed to gain sales.
Failed to develop vehicles that they could sell at a profit.
One of his “successes” the Solstice is a prime example of all he did wrong. Niche market=small sales. Reliablility has been near the industry bottom. They are losing $10k per car.
No loss here.
Bunter
Bunter
After reading these comments, it is offical: I am going to write an “In Defense of: Bob Lutz” editorial and submit it to the site. When I can get around to it.
Since my primary interest is cars, not the car business, I take a somewhat different view (and also can happily skip at least 90% of TTAC’s current offerings). Assuming Brother Farago is correct that GM’s affliction has long been inoperable, all the Maximum One could really do was try to improve the product. That he has done.
The following cars produced in the Lutz era are interesting, entertaining and/or class leading. That doesn’t mean flawless. The Miata may be “better” than Solstice or Sky. But the GM twins do infinitely more for the automotive carscape.
Pontiac GTO
Pontiac G8
Pontiac Solstice and Solstice Coupe
Chevrolet Cobalt SS
Chevrolet Malibu
Chevrolet Traverse
2010 Chevrolet Equinox
Chevrolet Tahoe/Suburban
Chevrolet Silverado/Avalanche
Chevrolet Corvette ZO6/ZR1
2010 Chevrolet Camaro
Saturn Aura
Saturn Sky
Saturn Vue
Saturn Astra
Cadillac CTS and CTS-V
2010 Cadillac SRX
Cadillac Escalade
Buick Enclave
2010 Buick LaCrosse
Add in concepts like the sublime Cadillac Sixteen, CTS coupe, Converj, Beat, Groove and Trax, as well as foreign models like the Chinese Park Avenue and STS, Opel Insignia, etc.
And let’s not forget the Chevrolet Volt. Whether or not a moonshot initiative is a good or dumbass idea for a company that has long had an upside down balance sheet is not my concern. It’s still cool. Just like the Tucker or Avanti or Duesenberg or DeLorean.
Purely from the car guy perspective, Lutz has been behind a lot of good to great to amazingly great (ZR1, CTS-V, Sixteen) stuff.
To all those who complain that Lutz’s progeny
failed to save GM, a hearty “whatever” from your humble correspondent. Van Gogh’s works didn’t sell either. But I’m glad he created them.
Wha? Since when did MB have anything to do with BMW or Ford, at least in the last few decades? I think KatieP has him confused with someone else.
Pontiac GTO – decent but didn’t sell, sold @ loss
Pontiac G8 – decent but doesn’t sell, sold @ loss
Pontiac Solstice and Solstice Coupe – roadster is decent but doesn’t sell, sells @ loss, coupe not out, reliability nightmare
Chevrolet Cobalt SS – niche offshoot of terrible compact
Chevrolet Malibu – decent but doesn’t sell, just better than the car it replaces
Chevrolet Traverse – decent but doesn’t sell
2010 Chevrolet Equinox – not out yet… how can this be evaluated?
Chevrolet Tahoe/Suburban – just better than what it replaced
Chevrolet Silverado/Avalanche – just better than what it replaced
Chevrolet Corvette ZO6/ZR1 – C6 was developed pre-Lutz, Z06 same, ZR1 not a volume product, doesn’t make a cent for GM
2010 Chevrolet Camaro – world’s most hyped vehicle, still not for sale though… how can it be evaluated?
Saturn Aura – nearly decent, doesn’t sell
Saturn Sky – see Solstice comments
Saturn Vue – nearly decent interior quality, reliability in the dumpster, doesn’t sell
Saturn Astra – do they actually sell these? What’s the point?
Cadillac CTS and CTS-V – nearly class-leading, but still not a volume product. The closest he got to greatness.
2010 Cadillac SRX – not out yet…
Cadillac Escalade – merely better than its predecessor.
Buick Enclave – decent but doesn’t sell
2010 Buick LaCrosse – not out yet…
I won’t even touch on the concept cars. They’re concept cars. How do they make money for GM or recover lost market share/stabilize market share? They don’t, making them pointless in this context. Especially the V16 Cadillac, which debuted on the eve of $4/gal gas.
As others have mentioned, Lutz was supposed to turn the company around, by introducing compelling products that compete with the industry leaders on quality, reliability, consumer consideration, features, etc. The cars he was supposed to have produced were to sell well and be sold at a profit. Next to nothing in the list above meets either of those requirements, let alone both. In my opinion, and in the opinion of most people who know anything about business, that is an outright failure.
Some of the cars were decent, yes, but nearly all are ones that we talk about on here (and only we know even exist) being good used buys because they sold so poorly their residuals are even worse than the rental car-inspired GM status quo. Not exactly a successful business proposition, then.
Let us not forget the craptastic current Buick LaCrosse was the first of Lutz’ babies. How well did that work out?