GM's Lutz Blasts Auto "Experts"
August 09, 2007
General Motors Vice Chairman Bob Lutz blasted so-called automotive experts who refer to Big Three auto executives as "Detroit Dinosaurs" during his speech delivered to the Center for Automotive Research's annual management conference Thursday.
"We have been routinely dismissed as dumb, unprepared, anachronistic, an endangered species...
"Are we to believe that three independent companies with three completely diverse global management teams, grounded by three different and independent boards all at once nearly imploded because they were all just the same level of stupid at the same time?
"Are we to believe there aren't any macroeconomic factors contributing to this situation? Are we to believe there are not other outside factors driving the domestic industry in a certain direction? Factors that may not necessarily affect the import manufacturers in the same way?
"If you listen to these 'experts,' you'd have to conclude that no, this really is just buffoonery on the part of a bunch of greedy, short-sighted U.S. car company executives."
Posted by Michelle Krebs at 2:23 PM under Commentary , GM , Personalities | Comments (12) | digg this | Seed Newsvine
In other words:
Is it only coincidence that the three automakers in the U.S. in chronic operational and financial distress (GM, Ford and Chrysler) share one thing in common?
Posted by: ThriftyTechie | August 09, 2007 at 5:19 PM
History Repeats Itself. 1973 Oil Embargo Vega,Pinto and Gremlin Hey! Chrysler didn't have a subcompact model, only Dart/Valiant. Fast forward to today's world. GM has one subcompact, GM-DAT Aveo, Ford, zilch and Chrysler, nada. Have they, the Detroit Dinosaurs learn anything? NO!! They are more like ostriches!! Their heads in the sand as Honda,Toyota,Nissan,Hyundai/Kia have the small stylish models which the buying public wants!! Domestics had under 50% of the market in July
Posted by: Ken Lichtig | August 10, 2007 at 9:01 AM
I have little sympathy for those who are so mislead and riddled with guilt that they must attack those whom they disagree with. Sadly, the truth often stings and sends people into attack mode. I consider myself an automotive expert as do many Americans who are mechanics, who read a great deal and are learned and of course those who choose quality vehicles and understand why they do not purchase Detroit Auto vehicles-sorry Maximum Bob it's only Toyota and Lexus for me-I am through donating my money on Detroit cars that fall apart faster than I can keep records on them. I relish the shear incompetency that is a full spread matter of public record in America, of the executives who have ruined the Detroit 3. With market share tumbling annually, cars recalled, cars with too soon repairs, cars with poor dealerships...God it never ends, Detroit Auto Companies are the epitamy of dysfunction. When you team up the Democrats, the gangster-extortionists- other wise known as unions and the imcompetent leadership in these companies, oh and I almost forgot the millions and millions of dollars thrown at these executives and then we must ask why Toyota's chief makes around a million a year, Detroit's guys make many millions. Is this the same planet that I was born on in 1951? it makes for a true mystery wrapped in an enigma fantasy fairy tale.
Posted by: Dr. D | August 10, 2007 at 11:48 AM
Dr. D ... dude, when was the last time you bought anything from the Big 3? Geez, you really go off on a tangent there in your complaining man.
Don't feel bad, a lot of people think like you do. Too bad, because the Big 3 have never made better cars and truck then they do today.
People, if you don't at least look at any car from the Big 3 when your looking for a new car, your only hurting yourself.
Posted by: Simon C | August 10, 2007 at 3:36 PM
I loved the comment by ken telling us how Stupid GM and the rest are so stupid, but he misses the point like so many others! We don't buy small cars and the big 3 can't built build them here with their fixed overhead. Japan has held the Yen so low that they can build them there at cost and allow the currancy exchange provide them with an actual profit. So unless congress provides releif with the unions we may one day have no auto industry period. But to all of the people that keep sayng I Told You So..... grow up and learn why its the way it is!
Posted by: Realitycheck | August 10, 2007 at 4:57 PM
Are these experts not the same ones that said GM was suppose to be bankrupt by now? This is just like everyone that is an armchair quarterback for their favorite football team telling the auto companies how they should run the companies. The difference is that everyone takes the auto "experts" opinion as fact even though 99% of them have never ran a company before.
Posted by: Jeremy | August 10, 2007 at 9:30 PM
Dr. D also has not read the recent JD Powers on reliabilty or he would know that Buick tied his beloved Lexus in quality. There were also many American manufactures on this list with higher quality than Toyota and Honda. Maybe someone should reconsider his choice.
Posted by: Richard | August 11, 2007 at 12:12 PM
I think Bob's comments themselves are dumb and indicate that the Detroit Three still can't admit their problems are brought on internally. Instead they want to whine and cry and blame someone else.
The fact of the matter is that despite three different sets of executives and three different Boards of Directors and all that, the three carmakers were singing the same tune. They all basically ignored their automotive offerings (especially GM and Ford) in favor of easy money SUVs. They all loved the big profit, low cost formula of a $12,000 pickup with a station wagon body and about $10,000 worth of upgrades but with a $40,000 to $50,000 price tag. They sold them in the millions making obscene profits on each unit and they padded their personal pockets by making short-term profits for the company. Did they care about the long term health of their respective carmakers? Apparently not. They cared about making money this quarter so they could please Wall Street and fill their own bank accounts.
Unfortunately for them, the party didn't last forever. Gas prices rose, the vehicles' propensity for rollovers became well know and the easy money SUVs fell out of fashion which left Detroit with nothing to peddle. They have no one to blame but themselves and I think that's why George Bush rightfully snubbed his nose at U.S. carmakers when they wanted to come crying to him.
Toyota built the Sequoia too BUT Toyota had a backup plan. They had the Pruis, the Scion line, the Corolla, they had every corner of the market covered with a quality, first-in-class product so no matter what consumers' demanded, they were ready. Ford, GM, and Chrysler should have done the same thing and they might not see Toyota overtaking them now but because of overpaid and inept management who developed a cocaine-like addiction to easy-money SUVs, America's automotive industry is in sad shape.
And I'm sorry Mr. Lutz.....while I applaud you for the massive improvements in GM's vehicles, I have to disagree with you. America's carmakers need to point the finger of blame in their own greedy faces and not at the messenger who speaks the truth.
Posted by: Ci2Eye | August 11, 2007 at 8:45 PM
I thik part of the problem with Detroit, Inc is "market gestalt", or the paradigm that imported cars are better because they are imported. Toyota has the biggest
MO(mentum) "thing" just because they do. Like Harley Davidson motorcycles. I have to think that all the other bike OEM's crowded into the OTHER half of that market are totally flummoxed as to why The Motor Company sells all the 750lb, 58hp, 30's-styled, 50's-tech machines they can build. It's just "MO".
Posted by: fulcrumb | August 12, 2007 at 8:03 PM
Please release UAW officials !
Are UAW officials sacrificing their elder retirees healthcare for a corporate VEBA sell-out?
Here are a couple of links for your consideration.
http://www.intellectualconservative.com/2007/08/11/interview-with-whitey-hale/
http://www.speroforum.com/site/article.asp?idarticle=10043&t=UAW+betrays+autoworkers
Posted by: Blue collar retiree | August 16, 2007 at 2:32 PM
It's ashame...or a sham that the American public hasn't opened their eyes. The "Big 3" have produced some of the most reliable if not "striking" cars in some number of years. I, being a GM guy of 20 years, think they're in the right direction, GM the most. When people realize that the very heart of americana rests with Chevrolet, Ford & Chrysler, (under true american ownership again!) the industry will turn around. Camaro. Corvette. Challanger, and I hate to say it, Mustang. These aren't the only products we know how to "build excitement" about. The Big 3 screwed it up for so long. As they finally figure it out...and produce the best products in decades, does anyone care??? I do. Long live the Big 3...(Plus, I really want a 2009 6 gear, orange with black stripes Camaro SS. How can I get 1 if they don't survive??????)
Posted by: Dave | August 20, 2007 at 5:21 PM
to Dr D: My wife had a toyota,, new, monthly she would get some kind of service bulletin from toyota reminding her that such and such a service h ad to be performed to keep h er toyoata in warranty,,, well to make a long story short after about $3000 in "services" such as,,, transmission fluid replacement,, motor flush,, radiator flush,, etc etc.. she decided to go look at American cars..... She bought a 07 Buick La crosse,, which actually gets better gas mileage, no reminders in the mail for any service, saving her $$$$ HUNDREDS... oh by the way she has ONSTAR and she did have one problem... it notified her that her rear tires were 5 lbs low in pressure. Japanese quality is the offspring of the left wing press, you can take that to the bank.
Posted by: jakkkflash | October 03, 2007 at 10:07 AM