GM FastLane Blog: Re-Igniting the Passion

[GMFreak8]

At GM, we’re positioning ourselves to compete in this global industry by leveraging our vast global resources.

We have streamlined our product development process, and aligned our planning, design, engineering and manufacturing capabilities under global auspices. It’s not possible any longer to operate as GM once did, as four regional and semi-autonomous auto companies.

Now all of our regions will be operating as one company going forward. And that will show in our improved product lineup. In fact, the process has already begun… the products we’ve recently introduced, and the ones to come in the short-term, are the best we’ve ever introduced. But it’s hard to get people to realize that.

Why? Let me give you a few examples of what some people are saying about us. You may have heard of this first guy:
President George W. Bush: “[The U.S. auto industry] needs to develop a product that’s relevant… GM is going to have to learn to compete.”

Another senior administration official told The Wall Street Journal: “The American auto industry needs to focus on producing cars that Americans want to buy.”

Automotive analyst Maryann Keller: “GM has forgotten how to make cars that people want to buy.”

Business Week’s David Kiley: “[GM] is not making very many cars that people want to buy.”

Are you starting to see why sometimes we think there’s a herd mentality out there? Here are some more…
The Wall Street Journal’s Lee Hawkins: “GM is having a hard time persuading Americans to buy its cars.”

Automotive analyst David Healy: "GM's problem is that … its products are boring."

St. Louis Post-Dispatch editorial: "Its real problem is that people aren't buying GM cars... To be blunt, GM cars are boring."

Fortune reporter Carol Loomis: “In product design, [GM] lost the magic long ago.”

Forbes Magazine senior editor Neil Weinberg: "[GM’s] biggest problem is product.”

The Wall Street Journal’s Paul Ingrassia: “Robert Lutz has been surprisingly ineffective at GM, as if mired down like a raisin stuck in oatmeal.”

I’m especially fond of that last metaphor — that was a new one for me. I didn’t even know raisins got stuck in oatmeal; I always thought they sort of floated there proudly, going about their business.

People who think it doesn’t matter who owns our auto industry are flat wrong. They think it doesn’t matter because the Japanese and Germans and Koreans are “producing” in the states now. But they’re not “producing”— they’re “assembling.” The parts are mostly brought from overseas, and the profits for reinvestment don’t stay in the U.S.

These are facts about our domestic auto industry:

GM, Ford and DaimlerChrysler account for 4% of the U.S. GDP, and 11% of all manufacturing shipments.

We collectively employ 400,000 people — that’s nine out of 10 American autoworkers — and affect 7 million jobs in auto and related industries.

We provide healthcare for 2 million Americans, and pension benefits for 800,000 retirees.

We buy 80% of the auto parts sold in the United States.

And we’ve made 85% of the total investment in the U.S. auto industry since 1980.

So remember those facts the next time somebody says it doesn’t matter what country’s supplies the cars and trucks we buy.


We want people to consider our products again, because they deserve consideration.

Our quality numbers are way up from where they were in the past. Our designs are more compelling, more dynamic.

I am intensely and unapologetically proud of what we’re doing at GM, and also of what all of the so-called Big Three are doing these days. And I’m allowed to be: I’ve worked for all of ‘em.

GM has the broadest product lineup of any manufacturer … we have more models that get 30 miles per gallon or better on the highway than anyone else … we have OnStar, the industry’s leading safety and security service … we have the best large SUVs on the planet … and we have a host of great new cars and trucks worthy of your consideration.

Once we get that consideration… once we raise people’s awareness… once we get back on their radar screens, we will put them in the kind of cars and trucks that inspire passion.

Don’t take my word for it. Go drive one of our vehicles — I think you’ll be pleasantly surprised at what we have out there now, and what we bring out in the very near future. And I think you’ll be as proud of our products as I am, just like we’re all proud of our Swiss Roots.



MORE/Article in Full: Continued....

I loved that speech

[Vlissengen]

Very good reading! I think Lutz lays down the situation well.

[free_energy0]

Well, thats one half of the truth. He cherry picks the new stuff, but forgets about the below average Malibu, G6, Cobalt, CSVs, and the LaCrosse. I guess he could say he didn't have much of a hand in those.

[Ming]

Great read and good to see American auto executive like Bob Lutz unafraid to be "politically incorrect" by pointing out some of the obvious.

Of course, I have no doubt that there will be people here who will try to jump all over what he said, especially regarding the Japanese, German and Korean automakers who've set up assembly plants in the U.S. , who many seem to think are more worthy of our hard-earned dollars than companies like GM that employ so many Americans. It's a dog eat dog global economy, they'll say, where only the fit deserve to survive. We'll get by somehow, someday, without having ownership in an industry that takes such a massive chunk of income out of most working American's monthly expenses - and we're told not to care that much of it will go overseas instead of staying at home - overseas to countries with huge trade deficits with the U.S. The US should find a way to shed itself of the old industrial age jobs anyway, or at least pass these jobs to the high-tech Japanese, who somehow still seem to want and need this so-called outdated industry. But its OK even if we can't ascend to a higher level of industrial prowess, because Toyota will build assembly factories for us, and we can always work there building Toyota-designed engines, platforms, and transmissions - and maybe the exterior shell will be penned by a California art student if we're really lucky. The Vibe is merely a taste of the wonders yet to come... {sarcasm off**

I'm just glad that he had the guts to say something like this, regardless of how people take it and how it conflicts with their "Imports Good, Detroit Bad" paradigm. Good job, Bob!

[usa1]

Good speech Bob. Now please go back to work and drive your team to make world class cars.

Mark

[equivocation]

Mr. Lutz. For $500,000 dollars I'll advertise all of you cars you in my magazine. E-mail me at gridironsportsmagazine@hotmail.com. Sorry about the previous post.

[b4z]

People forget what the first thing Bob Lutz did when he got to GM:
His big thing at that time was content creep.
He decontented across the board.
The IMpala lost minor things like coinholders and the PRDNL on the console shifter.
It is also lost major things like driver's side door airbag that was made a $300 option.
AND the don't forget the $1,000 price increase!!!!!!!!!!!!!

I am not a major fan of Bob Lutz.
Not exactly sure why he felt the need to lower the STS's roofline by 1".
But he did.
They aren't exactly flying off the lots.

[plane]

Yes, this is a Paul Revere moment.
The speech had its intended effect.
Now it needs a wider audience.

And wow does that XLR look fantastic.

[gwwyjjliu]

The problem with these pundits is that when they travel, they end up renting the "boring" GM products like the Malibu, hence that strengthens their perceptions. Since the good stuff like Lucerne doesn't show up in rental fleets, they don't know about them.

[nascarnate326]

Im not sure who my idol is, Bob Lutz of Steve Jobs.

[New_Mexico_Sunset_on_Rt66]

The bulk of that speech would make a great ad. especially the parts where he lays out the numbers of how the products are selling.

I think Bob would make a great boss to work for, because he would tell you EXACTLY how he feels.

I'll have a beer for 'ya Bob. :beer:

[63GrandSport001]

Originally Posted by free_energy0

Well, thats one half of the truth. He cherry picks the new stuff, but forgets about the below average Malibu, G6, Cobalt, CSVs, and the LaCrosse. I guess he could say he didn't have much of a hand in those.

You have to remember, the average time frame to make a vehicle from scratch is 48-60 months (4-5 years). Vehicles released when Lutz joined GM he really had no control over because they were so far along that it would have been dumb to delay them a few more years adding a few more hundred million dollars to the costs.

Vehicles released during Lutz 2nd and 3rd year he had more control over because they were early enough. But then agian GMs main issue at the time wasnt the product being developed but the process inwhich they were developed.

After 4 years we started to see some really hot products coming fourth and now we have things like the Sosltice, Sky, the entire Saturn line up, the GMT-900s etc..... and we have 6 speed autos coming to market from GM. You cant ignore all of the good and say that there isnt moer good product now at GM then there was before Lutz started.

GMs money issues really go back some 30-40 years, it was building up slowly to this point so you cant really blame lutz. There is only so much you can do to fix a 40 year problem in so few years, hes working on it and getting the job done along with highly un-popular Rick.

[give_it_all_]

I like Lutz's speals (?) a lot. They are generally straight to the point and say what I wan to hear. GM is getting better.

[TuffG929]

I knew there was a reason I liked this guy

[asim]

This is why I love the Fastlane blog...