There has been a lot said about GM in the wake of tough market conditions and the Detroit Automaker's $15.5B Q2 loss. As you can imagine, a lot of the talk isn't upbeat. GM Vice Chairman Bob Lutz seems to think much of the discussion surrounding the General is nothing more than speculation and uninformed bias, but then again Maximum Bob's got a bit of a pro-GM bias of his own. So you can imagine that Blogger Bob was interested to see an hour long special called Saving GM, which recently aired on CNBC. Mr. Lutz' assessment of the piece? He thought it was fair and unbiased, and it touched on the good and bad of GM over the past few years in an honest way. Lutz said he liked that the documentary concluded that GM needs the public to think "smash hit vehicle from GM" and think of "cars in showrooms, not museums."
We haven't seen the hour long special Saving GM, so we reserve judgment as to whether or not it was fair, but we've heard from a few people it's worth a watch. Saving GM will re-air on CNBC on August 10 at 10 pm ET, so set your TiVo. You can also read more about here at the CNBC website if you need more convincing.
Need a new car? If you're the Saturn Astra is on your shopping list, be wary of saliva spots... and while you're at it, pucker up. GM is running a Saturn "Kiss My Astra" contest, in which entrants are directed to capture their adventures in Saturn smooching on camera and upload them to the I M Saturn website. There, the online community of Saturn fans (we know, we were surprised, too) will judge the photos and declare a winner in September. The prize is a Saturn Astra XR. You're free to make out with any Astra you like, even your neighbor's, though you might officially become the neighborhood weirdo if people catch you locking lips with their ride. GM's Bob Lutz demonstrates his man-car love technique in the enclosed galery. Somebody turn a hose on this guy.
General Motor's car czar, Bob Lutz, sat down with the little people of the blogosphere after GM's announcement that it would be reducing white collar expenditures by 20-percent, cutting truck production and eliminating retired health care for salaried workers over 65, all in an effort to boost its liquidity by $15 billion by the end of 2009.
Maximum Bob addressed questions about GM's entire brand portfolio, saying, "Pontiac will be nourished with products" and confirming that GM is in talks with financial institutions about HUMMER, and that, "If we could sell the brand, we'd be interested in doing that."
Predictably, much of the conversation centered on fuel efficiency and the General's plans to address the growing demand for miserly transport in the U.S. Lutz made it clear that "as fuel costs in the U.S. begin to resemble those in the rest of the world" it will be easier for GM to realign its products on a global scale.
In the wake of the Chevy Beat news that started pounding the wires before the 4th of July weekend, the Wall Street Journal reached out to Bob Lutz for some commentary on the topic. Lutz, in an email to the Journal, said, "We always thought we'd do it at some point, but now it obviously enjoys a much higher priority." Based on what the Journal says, this loosely translates to "the 2012 timeframe." Unfortunately for GM, this is a car that its U.S. operation needs approximately yesterday. It would behoove the brain trust in the RenCen to stop debating this and simply end all the speculation by formally announcing a U.S. Beat and attaching a timetable, already (as in, now). We think that the car's appearance as an Autobot in next summer's Transformers follow-up will help create enough public interest for that GM will be forced to make some sort declaration if they haven't by then already (TF2 opens on June 26, 2009).
As we've suggested, GM would probably do itself a big favor by greenlighting production versions of all three Triplet concepts, sending the Trax (also featured in TF2) and Groove to showrooms, too. The argument that Americans aren't into small cars/econocars/hatchbacks is quickly losing water, as automaker sales numbers would attest. There's a reason the Civic now outsells the F-150 and that the Hyundai Accent saw a 70% jump last month. Toyota isn't adding the 5-door Yaris to the U.S. lineup on a whim, either. Market forces, in the form of elevated fuel prices, are altering the landscape, and people are a lot more willing to look at (and buy) something smaller and more economical. It's just reality. The longer General Motors deliberates, the longer it's going to get beaten by competitors who have product ready to go right now. Don't wait for for the popcorn-chompers to play focus group and beg for these cars next summer. Grow a set and make the announcement now. Who would've thought that Michael Bay has a better vision of the future than the General itself? In his, GM's cool, stylish minicars will be on the streets next summer. We know that's not possible in real life, but GM needs embrace the fact that a market now exists in the United States for the Beat (and its siblings) and make the obvious call.
Bob Lutz revealed to the Seattle Times that the price point for his company's Chevy Volt series hybrid electric vehicle will be $40,000, or around $10,000 more than originally estimated. Lutz also told the paper that the first-generation of the Volt would generate no profit for General Motors. There's still hope for buyers who were hoping to snag a Volt closer to $30,000, as potential tax incentives on state and federal levels could trim the price substantially. Congress is currently considering proposed legislation for plug-in hybrid tax credits on the order of around $7,000. Still, there's no telling what demand there will be for the Volt, and if it's higher than the supply, we could see markups on GM's high-tech hybrid from dealers who are trying to survive this transition from a market dominated by profitable trucks and SUVs to smaller, fuel-efficient vehicles. According to Lutz, however, cars like the Volt are the way of the future, and GM's car czar expects that between 2020 and 2025 a quarter to a half of all vehicles sold will be either electric- or hydrogen-powered. We'd put our money on electric, as this country has not gotten serious yet about building a distribution network for hydrogen.
Bob Lutz has come out and said it again: "I would say there's almost no reasonable doubt in our minds anymore that this is going to work." And that isn't just that the Chevy Volt will work -- it's that it will work on time and as promised. In spite of the difficulties GM has had getting Volt technology up-to-speed within its timeframes, the man upstairs is apparently as confident as ever.
Lutz said that engineers have driven the car to and above its 40-mile pure electric range already. Two companies are still trying to win the lithium-ion battery pack contract, although LG Chem says it has a 3rd-gen unit that's ready to go. Another hurdle is the car's internal combustion range extender starting up, which Lutz described as "noisy and still a little rough."
And of course, it wouldn't be a Lutz piece without him taking a shot at something. Speaking of Toyota's delay in rolling out lithium-ion batteries (although there could be another reason for that), Lutz said Toyota should have faced a bit more scrutiny for that decision. "They told the world that GM was taking a huge risk, that lithium ion batteries were prone to explode and that we were putting our customers at risk and that they would stay with the tried and true. When it comes to Toyota, let me tell you, the press has a short memory." After all of this, if the Volt doesn't show up on time and as promised, GM will need to retool one of its plants to make humble pies.
An article in the Atlantic Monthly examines the genesis and gestation of the Chevy Volt, and concludes with an intriguing mix of potential hits and misses. Calling the Volt "the Barack Obama of automobiles-everyone's hope for change," even the Atlantic Monthly knows that this car currently means more to GM and perhaps the U.S. car buying public than anything else. There is a huge amount of emotion behind the Volt, and not all of it is supportive.
The article is just as much about GM and how the company operates as it is about the car. The case is put forward that this is less about the viability of the Volt and more about whether GM can finally execute a proper long term follow through. GM has had brilliant ideas before, but its commitment and track record of seeing them through to successful ends isn't so great.
GM CEO Rick Wagoner said, "If I've learned anything over the past three or four years, it's that a lot of this business is sticking with it and persistence. In the coaching vernacular, we're going to leave it on the floor to make this happen." That's a telling quote from the captain of the ship. More heartening is the quote from another GM exec on what the Volt means to the company: "The empire strikes back." Atta boy.
Bob Lutz has gotten behind the wheel of a Chevy Volt mule, and he seems rather impressed -- both by the performance of its electric drivetrain's instant torque capabilities and the far-reaching impact that the electric vehicle could have on the marketplace. Of course, we are all familiar by now with the wallet-killing gas prices that are commonplace at our nation's stations, and Lutz was struck with just how important the Volt project truly is as he drove around and saw gas hovering around (and over) $4 bucks a gallon.
Although the vehicle that Lutz drove is still very much an engineering mule, the battery pack installed in the electric car was a lithium ion unit which has already been tested in the lab. Apparently, this first test-pack was delivered back in April, which marks a bit of a watershed moment in the development of the Volt. It's way too early in the development of the E-Flex platform to get your checkbooks out, as Lutz clearly states, but actual moving prototypes powered by lithium ion batteries is an important milestone.
According to Bob Lutz, the first Chevy Volt powertrain mule has just passed a major milestone. After several weeks of testing in the lab with a battery pack installed, the Malibu based pre-prototype has rolled out into the fresh air. In fact, according to Lutz, the car has even rolled passed past the security gates of the Milford Proving Ground to drive around on public roads. Even in this early, very rough, form, Lutz says the car is meeting and exceeding the goal of 40 miles of driving without running the engine. With this, the E-Flex engineers have demonstrated the performance viability of this concept. However, they still have a long way to go in validating the robustness of the system in different operating environments as well as the long-term durability of the powertrain as a whole. Perhaps the biggest issue to address is the cost of the system, particularly the battery pack. For GM to sell the Volt at an affordable price at launch, they will likely be taking a significant loss due to the cost of the batteries. When that cost comes down, GM will finally be able to crank up production.
GM Vice Chairman Bob "Maximum" Lutz published a new post today on the corporate GM Fastlane Blog that addresses the automaker's newest concept that debuted recently at Auto China 2008 in Beijing: the Invicta. The concept heavily hints at what the next-generation Buick LaCrosse will look like, but Bob points out that the global architecture underpinning the vehicle will be the basis of new cars for Chevy, Saab, Opel/Vauxhall and more. In the past, we would've expected those accompanying models to be rebadged versions with different grilles, headlights and taillights, but Bob explains how GM's new global platform sharing process is different than the rebadging of old. In a nutshell, he says that the money saved from sharing common platforms see will be put into making everything that customer's will see - exterior and interior design, specifically - completely different. While it's great to hear Bob talk about how GM finally "gets it" when it comes to producing common products across an empire of brands, it's something that other automakers like VW/Audi have been doing for years while the General kept feeding us "triplets" of every model it made. So kudos to GM for finally getting it, but it took 'em long enough.
