GM Announces Product Czar, Bob Lutz To Retire In 2009

Posted on 10. Feb, 2009 by Ryan in 2000-2009

It seems like just about everyone in upper management is leaving General Motors these days. This past week both GM Board Chair, Percy N. Barnevik as well as Tony Cervone, GM’s Director of Communications, are leaving GM, one leaving for “personal reasons”, the latter for a new job with United Air Lines.

Today, Bob Lutz, GM’s product czar since 2001, has also indicated publicly that he is now planning on retiring this year effective on April 1st, which I hope is not a joke, given the calendar date.

For our background, it was none other than Bob Lutz who canned the 9-3x Cross-Combi and a coupe with a hatch for the 9-3 line, and the next generation 9-5 resulting in only a facelifted 9-5 in 2006, all during the year after his arrival (2002), all confirmed by a Saab History insider recently.

For this decision by Lutz, myself and the international Saab community, and not to forget, Saab Automobile Ab themselves, will probably never forgive him. It was not just the cutting of numerous products, it was Lutz personally stopping the initial attempt at a planned product launch by Saab Automobile. The results of this action, delayed product launches for another three years, made many customers leave the brand, reduced the competiveness of the product portfolio. Saab Automobile, was effectively forced to go back to the drawing board to redo this process yet again in 2005. This time around, they had partial support from General Motors, and finally managed to get at least some of these products, to see fruition such as the 9-3x Cross-Combi and the next generation 9-5.

Lutz’s inability to see the forest through the trees was evident in many situations beginning with his statements that “global warming is crock” and “that saving fuel by tough fuel-economy regulations “is like attacking obesity by ordering everybody to wear size small clothing.”. Another darwin award goes to Lutz during his career in believing that the humble Europeans would really buy bling statement vehicles such as Cadillacs including the “Bob Lutz Special” (BLS) Cadillac. The BLS was a vehicle that used the 9-3 Sport Sedan platform, where he forced the Saab factory in Sweden to build and attempt to sell, resulting in a major financial fiasco and undermined the credibility of the Saab brand. Bob Lutz had a disconnect with reality, especially the intelligence behind the Saab Automobile brand, he never got it and never wanted to open his mind to it.

In summary, it was none other than Bob Lutz that was personally responsible for delaying product launches, starving financial resources for research and development funds, marketing, etc. and effectively creating the business case by default, to put the Saab Automobile brand under review for General Motors.

He is choosing to leave now for very specific reasons, and with this, I hope this is the last time I have to mention his name again, he will not be missed.

Here is the press release from GM:

2009-02-09

CONTACTS

Bob Lutz moves to Senior Advisor Role; Will Retire at End of 2009; Tom Stephens Becomes Vice Chairman – Global Product Development

DETROIT – GM Chairman and CEO Rick Wagoner today announced that Robert A. Lutz, GM Vice Chairman – Global Product Development, will transition to a new role effective April 1, 2009 as Vice Chairman and Senior Advisor. Lutz, 76, will provide strategic input into GM’s global design and key product initiatives until his retirement at the end of 2009. He will continue to report to Wagoner.

Wagoner also announced that effective April 1, 2009 the GM Board of Directors elected Thomas G. Stephens, Vice Chairman – Global Product Development, reporting to President and Chief Operating Officer Fritz Henderson. Stephens, 60, is currently Executive Vice President, Global Powertrain and Global Quality. In this new assignment, Stephens will maintain his responsibility for overseeing GM’s global quality activity.

Concurrent with this appointment, GM is restructuring its global powertrain group to integrate powertrain functional activities into their respective global GM functions. Accordingly, in his new role, Stephens will have responsibility for global powertrain engineering, in addition to global design, product engineering, product planning and program management. Powertrain manufacturing will report to Gary Cowger, Group Vice President of GM Global Manufacturing and Labor Relations. Other staffs that support the GM Powertrain organization will be integrated into their respective global functions. These moves represent another important step in GM’s restructuring initiative to create a leaner, more efficient organization.

“Bob Lutz was already a legendary automotive product guy when he rejoined GM in 2001,” Wagoner said, “and he’s added to that by leading the creation of a string of award-winning vehicles for GM during his time here. His 46 years of experience in the global automotive business have been invaluable to us. I’ve personally learned a great deal from Bob and have very much enjoyed the time we’ve worked together,” Wagoner added. “I’m looking forward to Bob’s continued contributions to GM for the remainder of 2009 – and I know the impact of his efforts leading GM global product development will continue for years to come.

“Tom Stephens is the perfect guy to take the reins of GM’s global product development,” Wagoner continued. “He’s had extensive experience in virtually every aspect of our global product development activities. With his 40 years at GM, Tom has an extraordinary understanding of our products and our organization, and is highly respected worldwide. I’m confident that with Tom’s passion for great products and vast knowledge of advanced propulsion, he will continue to raise the bar in executing outstanding GM cars and trucks.

Note: Biographies of Lutz and Stephens are available on the GM Media and Investor websites. Photos are available on the GM Media site.

Tags: Bob Lutz, Fritz Henderson, General Motors, GM Global Manufacturing, GM's, Percy N. Barnevik, Rick Wagoner, Role, Saab Automobile AB, United Air Lines