Lutz says GM’s Image is Changing

[wt2ga]

: GM’s Image is Changing

New vehicles are breeding a new attitude, says VP.
by Paul A. Eisenstein (2007-01-09)

Images aren't easy to change, but there's little doubt that General Motors' got a real boost from this year's North American International Auto Show, said the automaker's outspoken car czar, Bob Lutz. It has received wide praise for its new models, as well as kudos jurors on the North American Car and Truck of the Year jury who picked the Chevrolet Silverado as top truck and the Saturn Aura as best car during the opening session of the Detroit Auto Show.

"That shows that perceptions about General Motors are changing, especially among the media," said the septuagenarian executive, adding that positive coverage will help GM improve its image among potential buyers. "You can't do that with advertising anymore, even with all the money in the world." There's an internal payoff, as well, stressed Lutz. With the GM team "energized," he suggested, "that drives performance."

Even so, the vice chairman admitted there are some speedbumps in GM's path. Another surge in oil prices could hurt sales of the new Silverado and other full-size trucks. And while the company has trimmed about $9 billion out of its fixed, annual costs, it still has a severe cost penalty compared to competitors like GM. So-called "legacy" costs including retiree health care, puts the Detroit maker several thousand dollars behind the likes of Toyota in terms of what it costs to build a vehicle like the new Aura.

The executive said he is optimistic, if cautious, about the potential for the new E-Flex system shown in the Chevrolet Volt concept vehicle during the opening day of the Detroit Auto Show. The so-called plug-in hybrid-electric vehicle, or PHEV, could permit most U.S. commuters to drive to work solely on battery power. There is some serious development work to be done on Lithium Ion battery technology, Lutz cautioned, noting to meet customer needs, "The battery pack must last 4,000 charging cycles and 10 years."

During a wide-ranging interview, Lutz admitted GM has changed the way it thinks about new technology, such as hybrids and other clean-fuel powertrains. There may be early losses on such systems - it currently costs about $2000 to $3000 more to build a hybrid than the company can charge its customers, he noted - but that doesn't mean GM should sit on the sidelines. That only hurts the automaker's reputation and, in the end, costs it even more money. "A major lesson for GM," Lutz said, is that "you don't base business decisions solely on financial numbers

[lbsky]

Originally Posted by wt2ga

: GM’s Image is Changing

New vehicles are breeding a new attitude, says VP.
by Paul A. Eisenstein (2007-01-09)

Images aren't easy to change, but there's little doubt that General Motors' got a real boost from this year's North American International Auto Show, said the automaker's outspoken car czar, Bob Lutz. It has received wide praise for its new models, as well as kudos jurors on the North American Car and Truck of the Year jury who picked the Chevrolet Silverado as top truck and the Saturn Aura as best car during the opening session of the Detroit Auto Show.

"That shows that perceptions about General Motors are changing, especially among the media," said the septuagenarian executive, adding that positive coverage will help GM improve its image among potential buyers. "You can't do that with advertising anymore, even with all the money in the world." There's an internal payoff, as well, stressed Lutz. With the GM team "energized," he suggested, "that drives performance."

Even so, the vice chairman admitted there are some speedbumps in GM's path. Another surge in oil prices could hurt sales of the new Silverado and other full-size trucks. And while the company has trimmed about $9 billion out of its fixed, annual costs, it still has a severe cost penalty compared to competitors like GM. So-called "legacy" costs including retiree health care, puts the Detroit maker several thousand dollars behind the likes of Toyota in terms of what it costs to build a vehicle like the new Aura.

The executive said he is optimistic, if cautious, about the potential for the new E-Flex system shown in the Chevrolet Volt concept vehicle during the opening day of the Detroit Auto Show. The so-called plug-in hybrid-electric vehicle, or PHEV, could permit most U.S. commuters to drive to work solely on battery power. There is some serious development work to be done on Lithium Ion battery technology, Lutz cautioned, noting to meet customer needs, "The battery pack must last 4,000 charging cycles and 10 years."

During a wide-ranging interview, Lutz admitted GM has changed the way it thinks about new technology, such as hybrids and other clean-fuel powertrains. There may be early losses on such systems - it currently costs about $2000 to $3000 more to build a hybrid than the company can charge its customers, he noted - but that doesn't mean GM should sit on the sidelines. That only hurts the automaker's reputation and, in the end, costs it even more money. "A major lesson for GM," Lutz said, is that "you don't base business decisions solely on financial numbers

I would hope some changes are happening, how many more layoffs can you have before someone gets their head out of their keisterI have a few friends that are die hard bow tie lovers, which is fine, but what is it that they are currently making that is W.A.S., other than a 60k Corvette? Had the Camaro, but who the hell wants to pay 40k for that, not to mention it was a piece of junk. I hope they start to put some quality into their cars, especially since I am buying one. GM and Ford were making a killing on SUV's and trucks, both very overpriced and get really great gas milage. I hope they are making good on this commitment, I would like to see the Camaro and Trans Am back where they belong.