Bob Lutz made VP of GM
From Reuters and Yahoo.com
"GM said on Thursday it hired former Chrysler Corp. President Bob Lutz, widely
credited with helping turn around the ailing automaker with a keen sense for
distinctive cars and trucks, as head of product development. The 69-year-old Lutz will
become a vice chairman, reporting to Chief Executive Rick Wagoner. He will replace
Tom Davis, who retires in the first quarter next year. The blunt-talking former Marine is
considered within the industry a classic ``car guy'' who helped shape Chrysler's
reputation for making innovative vehicles such as the Dodge Viper sports car and the
hot-selling PT Cruiser. `I'm taking this job because it is truly a once-in-a-lifetime
opportunity -- the opportunity to help in the ongoing rebuilding of not just an
American icon, but a global icon,'' Lutz said in a statement. He is the second former
top executive of a rival automaker to join GM since Wagoner became CEO in June last
year. Last December GM hired John Devine as chief financial officer, a position he
formerly held at Ford Motor Co. (NYSE:F - news) The hiring of Lutz is the latest step
GM has taken to improve its vehicles, whose styling has been derided in recent years
as the automaker's U.S. market share continues to slip. GM has also hired a number of
top designers, including Bryan Nesbitt, who designed the PT Cruiser, and Anne
Asensio from France's Renault SA. (RENA.PA)The most recent embarrassment for GM
was the Pontiac Aztek, which has failed to sell to expectationsand has been criticized
for its styling. The Aztek fueled criticism that GM's top ranks were dominated by
executives with financial and sales backgrounds and lacked people with a strong
sense of product development. At a speech earlier this year, Lutz ridiculed many of the
concept vehicles displayed at the Detroit auto show, saying they looked like ``angry
appliances.'' Lutz arrived at Chrysler in 1986, when the company was close to
collapsing for the second time in a
decade, and many of its cars and trucks were considered outdated and boring. By the
time he retired in July 1998, Chrysler was hailed for its product design and
innovations, one reason that Daimler-Benz bought the company to form
DaimlerChrysler AG. (NYSECX - news) (DCXGn.DE). However, Chrysler continued to
suffer from a reputation for poor quality, which contributed to its recent sales slump
and massive losses. Since leaving Chrysler, Lutz has headed battery maker Exide
Technologies Inc. (NYSE:EX - news) and will continue as its chairman. He also has
been seeking funding to start up high-end sport car manufacturer Cunningham
Motors. GM said that Lutz's agreement does not include any contractual arrangement
with Cunningham. Some question how effective Lutz will be within GM's massive
bureaucracy. `It's definitely a good step,'' said Nick Twork, an analyst with AutoPacific.
``I don't think that one person can fix a car manufacturer. It's not going to be a
cure-all from a product standpoint.'' Lutz's employment agreement with GM, effective
Sept. 1, runs for three years. He will oversee the development of GM's global product
portfolio. Reporting to Lutz in his new role will be Wayne Cherry, the head of design,
Jim Queen, the head of
engineering, and 14 North American vehicle line executives. Larry Burns, vice president
of GM research and development and planning, will report to both Lutz and Wagoner.
"
I hope that Lutz can turn GM around like he did with Chrysler. I also hope that the Germans at DC and Bob Eaton a crapping in their pants about this. Maybe the Corvette program
will get on track and they will build another King of the Hill to match the Viper. And maybe the Germans will look at this and it will serve as a wake up call. If he does, there might be a Corvette in my garage (to keep my Snake company).
Good luck Bob, I hope that you kick some a$$!
Brad
