• Apr 13th 2006 at 7:55PM
  • 23
Speaking at the New York Auto Show Wednesday, General Motors' vice chairman in charge of soundbites and global product development, Bob Lutz, said that "Bankruptcy is totally out of the question. We have never contemplated it."
Lutz went on to say that GM's restructuring efforts are "on schedule," and gave a ringing endorsement for CEO Rick Wagoner as "the right man to lead GM and to continue the turnaround."

Peering deeper into his crystal ball, Lutz does not see a Delphi strike in GM's future. He must share that crystal ball with Ford's Mark Fields (see our Wednesday post here), because, like Fields, Lutz also sees a continued decline in U.S. market share for his company. Lutz suggested that GM's market share will stabilize in the low- to mid-20 percent range. (GM's 2005 market share was 26 percent.)

[Source: Reuters]

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    • 1 Second Ago
      • 9 Years Ago
      Gundar, what the hell do you call a Lexus ES, Avalon and Camry? Or a Highlander and RX? If that isn't using one platform multiple times I don't understand the concept.
      • 9 Years Ago
      I don't think bankruptcy would have any effect at all. Why? So many American companies, have already done it. Add in the number of personal bankruptcy filings there are.

      The key is having a plan in place before you pull the plug of how to cover warranty, take care of the dealers and customers and rebuild the company. Good planning and perhaps 3 months of true reorganization, a year later out of bankruptcy.

      The problem is this, pull the plug, no plan, business as usual. Nothing changes.
      • 9 Years Ago
      Is Mr. Lutz saying GM is not even considering bankruptcy because he heard his crosstown rival say the same thing about Ford...just a few days ago? Or is it because, for some unknown reason he thinks Mr. Wagoner will pull something out of the air at the last minute? PSST...Mr. Lutz and Mr. Wagoner, your team is in sudden death overtime NOW, if you really have a "grand plan" YESTERDAY would have been a good time to implement it. It will involve more than just selling off bits of GM all the while "parroting" we are not going under, we are not going under, we are not going under.
      • 9 Years Ago
      Lutz will keep saying that as GM continues to lose tons of money each and every quarter.
      And he is trumpeting that useless bastard Wagoner because Wagoner threatened to quit if the board did not support him and the board has their heads so far up their asses that they have no clue as to what to do if he quits.
      It will be of no matter in the long run considering how fast Wagoner is running GM into the ground...
      • 9 Years Ago
      To #16- "Theinformed", you have bought into the Lutz con job, like all of the GM board of directors. Lutz is just a suit, he is not a designer. He did not design squat, as an executive he only works to drive changes and approve designs.

      Lutz has been a charming cigar smoking, former marine, helicopter flying legend, that people want to think is the Great Pumpkin who is going to come to the pumpkin patch and save GM. But he really has a mixed history at other automakers.

      Let me give you just one example AWD GM has none!!!-The Dodge Caliber vs the Chevy HHR, same price, but AWD is an option on the Caliber.

      This applies to Clean Diesels, Hybrids, 5 and 6 speed automatics. Lutz has done more harm than good to GM because he has taken the focus off of building substance in the products, and just pitching styling.

      To top it off, his emphasis has been on the least important vehicles in the line up, the Solstice, Sky, STS, HHR, the GTO. All combined, those vehicles dont sell either the Accord, or the Camry, or the Civic, or even the Impala.

      Luts has sold himself well, and has done a disservice to GM. He and Wagoner should both resign. I dont care how many promises they make, and how cute and trustworthy they behave. Results matter, and not Excuses.
      • 9 Years Ago
      What else would you expect him to say? Every company I can remember that's filed bankruptcy denied they were going to file . . . until they filed. Go back and read what Ken Lay said about Enron's future before they filed.

      The tough truth is that, post sell-off of a majority interest in GMAC, GM may be positioned perfectly to file Chapter 11, shed itself of non-economic agreements with labor and suppliers, get lean-and-mean, and wind up making cars that are affordable, desirable and (most importantly) profitable to build.

      Can it accomplish that goal without bankruptcy? Maybe; but the pain will be stretched out over years rather than months.
      • 9 Years Ago
      If they are going to expect to settle in the 20% market share range, you can for sure kiss some more brands away. What is that like 2.8% market share divided equally between all of there brands? What a joke.
      • 9 Years Ago
      Anyone privy to what's in the pipe knows GM has nothing but upside from here. Toyota's quality is slipping fast and everyone's starting to figure out the long held industry secret that all of the European makes are expensive junk. Honda is clearly out of fresh ideas and the Koreans are selling the appeal of cheap. GM's best times are clearly ahead.
      • 9 Years Ago
      Oh please stop the WWII Rhetoric.
      Nobody cares anymore what happened over 60 years ago.
      Respect WHAT?
      People died on ALL sides.. the french, russians, polish, germans, japanese, etc etc.
      Of all ages, of all creeds, and many nationalities.
      Hmmm.. sounds like what is WORLD WAR II means?
      It doesnt single out one particular group.
      The history behind what happened is far more colorful than you realize.
      Did you know that most japanese didnt even want to attack the US knowing it was suicide but did so because of thier Emporer?
      Did you know that Emporer Hirohito was under Hitlers thumb and told he HAD to attack the US or die?
      Today, the japanese are our friends, and so are the europeans.
      Im disgusted to hear people bringing back the "Remember Pearl Harbor" and all that crap when only a tiny handful of people died there compared to the millions and millions of japanese we slaughtered with fat man and little boy.
      A thousand times more.
      Sorry man, but the patriotic crap is out the window.
      We live in a world economy, and we cant be bitching about events that cannot be changed.
      More hate is exactly what we dont need these days.

      • 9 Years Ago
      I have to admit, My Escalade is a piece of sh&t. But i just buy cause I'm the holloywood crowd. But if GM goes bankrupt, you better believe i'm getting off the train.
      • 9 Years Ago
      Isn't Lutz the same guy in the "Scary Movies" series ? How about "The naked gun" and "white men can't jump" ???

      Scary Movies 4 is coming out soon !!!, I guess they drive GM, that's why it's scary.
      • 9 Years Ago
      For the ignorant, Lutz just happens to be the best design man in the business, and yes Toyota was trying to hire him from Chrysler when he went to GM. Give it up bashers, Lutz is changing the face of GM's product line, resulting in cardiac arrest among the Japanese fetish groupies. Toyota's glory will be fleeting, they have awakened the sleeping giant and it about to stomp the sh@t out of the rice eating pretenders.
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