GM Measures “The Lutz Effect”

[Ming]

GM Measures “The Lutz Effect”
Seminar suggests GM finally may be finding product czar’s religion.
by Paul A. Eisenstein

A one-time Marine pilot, Lutz holds the formal title of chairman at General Motors Corp, but his informal designation is far more revealing. The septuagenarian executive is GM's "car czar," charged with transforming the automaker's product development system, and the vehicles it rolls out.

Yet in an industry with lead times measured in years, the first of the cars and light trucks with the Lutz stamp are just beginning to reach market. Earlier this month, GM offered a select group of automotive journalists the chance to experience some of them - products such as the redesigned Corvette and new Pontiac G6, as well as other vehicles produced by GM subsidiaries around the world.

More than two dozen senior GM executives - including not only Lutz, but chairman and chief executive officer Rick Wagoner, chief financial officer John Devine, and various regional managers - took part in a background briefing intended to show that the automaker has finally learned the lessons from a long-running crisis that nearly drove it into bankruptcy a dozen years ago.

There's no doubt of the pecking order at GM. Wagoner is the corporate ringmaster, reigning in a far-flung empire that long operated like a bunch of autonomous fiefdoms.

That's an unacceptable situation in an industry, declared Wagoner, where "ever-tougher competition" is driving down prices and profits "everywhere in the world." Even before he assumed the chairman's title, Wagoner's central theme was to get GM "increasingly acting as one company," a manufacturer creatively leveraging its global resources to support its regional operations.

Nowhere is that more obvious than in South Korea, where the former Daewoo Motors - now GM Daewoo Automotive Technologies, or GMDAT - is rolling out an array of small and midsize products that are being sold under a variety of GM nameplates around the world. Come next January, GMDAT products will be marketed in Europe under the Chevrolet badge, Chevy to serve as a new entry-level brand beneath GM's well-established Opel marque.

The idea is not to produce bland world cars, cautioned Wagoner, "but vehicles tailored to regional and local markets."

Nowhere is that more critical than in the home market, where GM has lost an average of nearly one point of market share annually since the last oil crisis in 1979. With its share currently around 28 percent, the automaker remains by far the giant of the American industry, but "We know that leadership is not our birthright," declared Lutz during the session in southern France.

There's no question that Lutz has had a significant effect on GM over the course of his three-year tenure. He's abandoned an ineffective emphasis on brands over products, streamlined engineering operations and empowered GM's once-authoritative design center to take the lead in product development.

Yet as one well-placed source complained, the automaker is "like a hydra," and not much more manageable. Even the simplest details have a tendency to slip out of control. When GM designed the new Corvette, it originally planned to use expensively grained, low-gloss plastics for the center console. By the time production began, suppliers were shipping a cheaper material that looked like it came from a discount store's bargain rack.

Lutz growls in frustration when such matters are pointed out. His critics question whether there will ever be the "Lutz Effect," the holy grail of product development that will transform products into truly world-class competitors.

"I'd have to tell you the Lutz effect is going to be gradual," the former Chrysler Corp. president candidly admitted. It's beginning to appear in products like the Corvette and STS, he insists, but Lutz contends the products hitting market for 2005 were already under development when he got there, so, "It's going to be another year or two before you see the all-new products created under my leadership."

Full Article Here: http://www.thecarconnection.com/index.asp?...75&article=7609

[Sparta]

We've heard this crap too many times. Stop running your mouth Lutz and start putting out, 2 models isn't enough for 3 years

[BigAls87Z28]

As we all know, it takes awhile to hit the market, so whatever product Lutz has done in the past 2 years will start hitting the showrooms now.
So far, his first 2 cars are a dead on, with cars like the Cobalt, LaCrosse, and G6 are getting great reviews. Lets not forget the Solstice.

Without Lutz, GM would be neck deep in crap.

[camaro chris]

Lutz is the kind of guy who will bring back the camaro

[mbukukanyau]

Originally posted by bigals87z28@Sep 30 2004, 03:49 PM
As we all know, it takes awhile to hit the market, so whatever product Lutz has done in the past 2 years will start hitting the showrooms now.
So far, his first 2 cars are a dead on, with cars like the Cobalt, LaCrosse, and G6 are getting great reviews. Lets not forget the Solstice.

Without Lutz, GM would be neck deep in crap.

Saw my first C6... Ripe Banana Yellow.... Boy that thing is boiling!

[BigAls87Z28]

Originally posted by mbukukanyau+Sep 30 2004, 04:35 PM--></div><table border='0' align='center' width='95%' cellpadding='3' cellspacing='1'><tr><td>QUOTE (mbukukanyau @ Sep 30 2004, 04:35 PM)</td></tr><tr><td id='QUOTE'> <!--QuoteBegin-bigals87z28@Sep 30 2004, 03:49 PM
As we all know, it takes awhile to hit the market, so whatever product Lutz has done in the past 2 years will start hitting the showrooms now.&nbsp;
So far, his first 2 cars are a dead on, with cars like the Cobalt, LaCrosse, and G6 are getting great reviews.&nbsp; Lets not forget the Solstice.&nbsp;

Without Lutz, GM would be neck deep in crap.

Saw my first C6... Ripe Banana Yellow.... Boy that thing is boiling! [/b][/quote]
As did I....in Silver. I stopped, and he pulled up next to me. We chatted for a bit, then went our ways. His wife/sister/daughter was driving a red C5 behind him.

[desmo9]

Originally posted by camaro chris@Sep 30 2004, 03:50 PM
Lutz is the kind of guy who will bring back the camaro

Actually, unless he's been bluffing, he's gone on record several times saying the Camaro is history.

And why would he bluff? As Ford launches the new Mustang, the best thing GM could do for the 2005 show circuit is display a nice Camaro concept as a prelude to a 2007 or 2008 model. Otherwise, anybody looking for that sort of car will defect to Ford in a "heartbeat."

Much of what I don't like about Lutz, in fact, stems from this very issue.

[mbukukanyau]

Originally posted by bigals87z28+Sep 30 2004, 04:45 PM--></div><table border='0' align='center' width='95%' cellpadding='3' cellspacing='1'><tr><td>QUOTE (bigals87z28 @ Sep 30 2004, 04:45 PM)</td></tr><tr><td id='QUOTE'>

Saw my first C6... Ripe Banana Yellow.... Boy that thing is boiling!

As did I....in Silver. I stopped, and he pulled up next to me. We chatted for a bit, then went our ways. His wife/sister/daughter was driving a red C5 behind him. [/b][/quote]
I can see the Covertte, and Z06 outselling the Boxter like there is no Yestaday....

I cannot imagine why I would buy a boxter over the Covertte.

GM could price the Z06 @ over $110 K and outsell the 911. That thing is hot... the press did not communicate just how radical the covertte has gone... its smaller, and way better put together...

That 6.0 Liter V8 is sweet.....

[BigAls87Z28]

Originally posted by desmo9+Sep 30 2004, 04:47 PM--></div><table border='0' align='center' width='95%' cellpadding='3' cellspacing='1'><tr><td>QUOTE (desmo9 @ Sep 30 2004, 04:47 PM)</td></tr><tr><td id='QUOTE'> <!--QuoteBegin-camaro chris@Sep 30 2004, 03:50 PM
Lutz is the kind of guy who will bring back the camaro

Actually, unless he's been bluffing, he's gone on record several times saying the Camaro is history.

And why would he bluff? As Ford launches the new Mustang, the best thing GM could do for the 2005 show circuit is display a nice Camaro concept as a prelude to a 2007 or 2008 model. Otherwise, anybody looking for that sort of car will defect to Ford in a "heartbeat."

Much of what I don't like about Lutz, in fact, stems from this very issue. [/b][/quote]
IMO, bad move. Look at the Solstice, to which you yourself said something to the effect that the solstice is old already because it was debuted so long ago, and hasnt been released.

I say in 06, at New York, show off the Camaro production car and announce production to start summer/fall of 06.

then I will do the following...

[Randle2I]

I'm not entirely sure why some of you despise Lutz so much? He has done nothing but good at GM. If you should blame anyone (anything) it is all the bean counters, the bad UAW members, and the rising health care costs. Lutz helped with the Corvette, the G6, Cobalt, LaCross and some others. Working with what he has, I feel he has done an excellant job at rolling out some decent and some excellant cars. People where bitching about wanting a RWD V8 powered car at Pontiac & he gave them exactly what they wanted (to some it may be a bit understated, but whatever). Give credit where credit is due, and be patiant. A turnaround at the worlds largest automobile manufacturer doesn't happen overnight. It takes years of good design and deep pockets (which we all know GM doesn't have).

[IMPALAon20s]

like the acticle says, lutz's true influenence on GM will not be realized until products he's worked on from the beginning hit the showroom. til then he's only able to improve exisiting or in development cars.

i remember seeing a show about the development of the viper, when lutz was running things there, and recall a designer saying "lutz said to design it the way they wanted and he'd keep the bean counters off our backs". thats the kind of attitude that could bring great things.

btw- when do the products lutz was at gm for during from the beginning hit showrooms, and what are they?

[T-Type]

Originally posted by desmo9@Sep 30 2004, 10:47 AM

And why would he bluff? As Ford launches the new Mustang, the best thing GM could do for the 2005 show circuit is display a nice Camaro concept as a prelude to a 2007 or 2008 model. Otherwise, anybody looking for that sort of car will defect to Ford in a "heartbeat."

IMHO, Ford and GM need to forget about their historic rivalry. They need to focus on the real threat, Toyota. I'm glad to see Lutz not rushing in with a new Camaro to compete with Ford. Right now that's not what he needs to be worried about.

[apro4x4]

B) You know what........I would buy a GTO for what it is but the trunk space is a big issue of mine !!!!!!!!!

[ibechip]

If Lutz were really smart, he'd announce at the New York/Chicago auto shows in January that GM was going to produce the Camaro and it'd be hitting the showrooms that summer. Then follow it up with a media blitz. That's the way to hype up your product. Not 2 or 3 years before it comes out. That's making excuses.

[ibechip]

The Cobalt will be Lutz's most important vehicle of his short tenure when it comes out.