Insight into GM\'s Leadership & Turn-around

[ozpont]

In an attempt to "drum-up" some pre "Detroit Auto Show" hype the AP releases a success story about Bob Lutz.  
The story tells us everything we already know about the Lutz career.
     However the most interesting fact revealed was contained in the very last sentence in which they report that in November there was only a seven (7) day supply of Malibu's in the field.
     The story was ignored by the WSJ, NY Times and USA today. American  Jim Wangers picked it up and sent me this peice today to share with those who share back ground interest in the high side of town.
DC



GM's Lutz leads automaker's vehicle renaissance
By: TOM KRISHER - Associated Press


Right brain creativity gets some credit under his leadership

DETROIT ---- Before Bob Lutz joined General Motors Corp. as vice chairman of
product development in 2001, the left brain, by most accounts, was
dominating the right when it came to making cars.

     The rational left-brained engineers and planners would develop the chassis, engine and transmission, and marketing would have its say. Only then would the more creative right-brained designers be called in to fit a skin on the outside ---- so late in the process that the result was usually a mediocre car that turned customers away.
But recently, the right brain has been in from the start thanks in large part to Lutz, and the results are beginning to show in the marketplace with the latest generation of GM cars, tr ucks and crossovers like the Saturn Aura and redesigned Chevy Malibu. They' getting great reviews and starting to catch on with consumers.

    "It was an overly rational approach to the business," Lutz said of the old GM. "The feeling was, if we give them a nice car with lots of features, and we make it very roomy and very reliable and very functional, people will realize what a good, rational purchase this is and we will get great sales.
And then it didn't happen," he said in a recent interview with The Associated Press.

    Lutz, a former Marine captain and aviator, has been in the auto business since 1963 and has held executive positions with GM, Ford Motor Co., Chrysler Corp. and BMW AG. Industry analysts credit his product instincts
with much of Chrysler's success in the 1990s when it cranked out creative hits with the right mix of exterior styling, performance and classy interiors.

Removing obstacles

   When GM Chief Executive Rick Wagoner recruited him away from his post as chairman and chief executive of battery maker Exide Technologies, Lutz said he found a company hamstrung by hundreds of rules that limited design.

"The system here was really focused on stuff like that, where they'd ruin a design to get an inch more rear headroom or something," Lutz said. "The rational, functional elements were always emphasized over the aesthetic."

     Although a group of executives had started holding meetings to eliminate some of the archaic rules, Lutz pushed the process along and created a huge transformation by giving designers more power early on, said David Cole,
chairman of the Center for Automotive Research in Ann Arbor.

"He took the handcuffs off ... and really brought them into a totally different position in the game," Cole said.

Shortly after his arrival, Lutz began influencing cars and trucks that were developed under the old system, but because it takes years for a vehicle to go from a drawing to reality, only recently has GM seen the full impact of Lutz's touch.

    The Saturn Sky and Pontiac Solstice two-seat roadsters were hit niche
    The Saturn Aura mid-sized sedan won the North American car of the year at the 2007 Detroit auto show. The Buick Enclave, GMC Acadia and Saturn Outlook crossover vehicles and the Cadillac CTS sedan, praised for their exterior designs and elegant interiors, are selling well. And out of the, Chevrolet dealers in November had only a seven-day supply of Malibus.

Set for the future?

"Certainly they've strung together back-to-back products that have been very
good, and then looking at what they've done on the cost side, I think they're lined up pretty well into the future," said Kevin Tynan, a senior automotive analyst with Argus Research Corp.

     The challenge for GM, he said, is to carry that momentum to all of its brands, some of which have been neglected at the expense of new products. GM, he said, still must change the perception that it makes mediocre cars.

"Because of the scale of the company, you're just dealing with so much overlap. You're dealing with inattention. You just can't be all places at all times," Tynan said.


     GM has people who can carry on after Lutz decides to retire, he's 75 now......., that also has worried industry speculators - it may pick the wrong person to lead its global product development.....     so it doesn't return to its old ways.