Lutz sounds the alarm: GM puts RWD drive vehicles on hold
Bob Lutz is determined to rattle all the cages he can in order to be heard above roar of the CAFE and CO2 standards debate. First, he said that forcing automakers to raise CAFE standards 4-percent per year would raise the price of a new car by $5,000. That was in response to Bush administration proposals. Now he's putting car enthusiasts on notice, going on the record saying that GM's RWD models would be put on hold.
[Source: Chicago Tribune via Winding Road]
Telling the Chicago Tribune, "We've pushed the pause button. It's no longer full speed ahead," Lutz sounded the alarm. The new Camaro (due in 2008) and Impala sedan (2009) are meant to help GM out of its profit rut, but both are built on GM's large RWD platform and Lutz doesn't see a way to get 30% better gas mileage without a serious amount of investment (which would be passed on to consumers). Lutz declared it's too late to stop the Camaro, but said "anything after that is questionable," apparently including Camaro derivatives and the Impala sedan. Other cars that would be affected by the "pause" include a performance-oriented midsized Pontiac, the Buick Lucerne, a compact Cadillac, and high HP versions of the Solstice and Sky roadsters -- essentially, a full assortment of cars specifically meant to put GM back in the green.
All of the carmakers are waiting to see what the EPA does in response to the Supreme Court's ruling that the EPA can regulate CO2 standards (which they haven't done up to now), Lutz says GM will decide on its rear drive cars when the government settles the CO2 and CAFE debates.
Showing just how tense he is on the new emissions storm, Lutz said that "if we legislate CO2 from cars, why not legislate we take one less breath per minute since human release capricious amounts of CO2?" Even the new trio of compacts introduced at the show won't help -- Lutz saying "small-car mileage only counts toward CAFE if you build them here," and you can't build small cars here at a profit. . . . [The] domestic fleet is where GM needs help."
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Reader Comments (Page 1 of 6)
Matt Dell 1:49PM (4/10/2007)
This sucks!
But I love how Bob Lutz is such a straight-shooter. Doesn't sugar coat anything or dance around the questions.
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Viv 1:50PM (4/10/2007)
What the hell???I am so sad that's all i can muster right now.
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SWAT LAX 1:58PM (4/10/2007)
"small-car mileage only counts toward CAFE if you build them here,"
What???? Since when??? CAFE is broken down into 2 categories: cars & trucks. The OEM's numbers come from the average fuel economy of the cars sold in the US in that category. Porsche builds every one of their cars in Germany, and they pay millions every year to ignore CAFE standards. Isn't the Prius built in Japan?
Wow, I understand why GM is nervous about this, since people are ok paying for HP but not Green, but Lutz is off the rocker with that quote.
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jg 1:59PM (4/10/2007)
'Lutz said that "if we legislate CO2 from cars, why not legislate we take one less breath per minute since human release capricious amounts of CO2?" '
Hmm, that's some solid logic right there. People exhale, why can't cars. It'll even fit on a bumper sticker.
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matt 2:01PM (4/10/2007)
I dont buy it. For 5000 he could make every one of those cars a hybrid.
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Yayaja 2:03PM (4/10/2007)
So after decades and decades of terrible decision making, Bob Clutz has the nerve to blame the government for the position GM is in now?
So the government tries to curb global warming and all anyone cares about is their rear wheel drive V-8's? Man, I remember a time when you could be proud to call yourself an American.
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Paul C. 2:03PM (4/10/2007)
Bob Lutz is a baby! Oh boo, they are telling us to make cleaner and more fuel efficient cars so I'm just going to start crying and not make any cars at all.
What are his comments and threats supposed to accomplish? Not making those cars will accomplish nothing more then just sinking GM further and faster.
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Todd 2:11PM (4/10/2007)
I hate to say I told you so....but I told you so!
Bob "Bait and Switch" Lutz shows you the new Camaro, then yanks it hoping you the automotive enthusiast will call your congressman and yell about emission standards.
This is how the domestic car market ends...not with a bang, but a whimper.
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reddsharkk 2:11PM (4/10/2007)
His comments are sad excuses for poor business planning. Blame everyone else! I wonder if GM makes the huge bus that lutz wants to throw everyone under. This is just pathetic. Funny that the some of the european makers are whining to the same tune. Its true you cant force customers to go green, but dont complain about it to the us! Come up with a way.
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Moose 2:12PM (4/10/2007)
Lutz is full of crap. If GM had embraces modern emissions reduction technology prior to now they'd have 0 problem adapting. It's GM's fault for sticking their fingers in their ears and going "naaa naa I can't hear you More Pushrods Please!" instead of listening when their customers spoke.
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Dodge 2:17PM (4/10/2007)
this is just what gm needs, more of their die hard fanbase pissed off, way to go lutz, and could he have presented this information in any worse way? sounds like a hissy fit!...pathetic
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Fabulo 2:19PM (4/10/2007)
It's a pretty specious argument. It never stopped them from building Suburbans w/6.0LV8 or supercharged pontiac that get 18 MPG. Why it would affect the RWD cars is a good question.
Did they plan on selling more G8V8 than GTOs? Or more Impala RWD than current Impalas?
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Mike 2:20PM (4/10/2007)
It's looks a though Bob may finally have noticed the 800 pound gorilla in the room. Gas is now 3 bucks a gallon almost everywhere and you can't make it in the 21st century with 20th century products.
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bigdogboy4 2:21PM (4/10/2007)
Cars that burn gas emit carbon monoxide (CO2), a green house gas, and people exhale carbon dioxide (CO), which is not. If Lutz and his people GM don't know the difference then they should go out of business!
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bobdobbs 2:21PM (4/10/2007)
Hooray! GM should be figuring out how to make a premium small car. How many more 4000 pound, V8-powered behemoths carrying a single person do we need clogging our freeways?
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why not the LS2LS7? 2:22PM (4/10/2007)
I don't know what you people are talking about, whining about too many pushrods.
GM has a very good mpg track record. Although they lack dual-mode hybrids, their vehicles in general rank at the upper end of mpg ratings in their classes.
Lutz is right though, increased mpg means fewer RWD vehicles. IMHO, this is a good thing. Not every person races their car, so putting in race features like RWD doesn't make sense. Cars need to be redesigned for better mpg, even if that means making some people understand that they need to buy a vehicle that is appropriate for what they do with it and not what they fantasize about doing.
As long as the CAFE requirements are fair (and they have not been in the past), there's no reason GM can't compete in the marketplace, RWD against RWD and FWD against FWD. It just means they can't jump in with nonsensical vehicles like the 1-series, and BMW will have to retract from this market too.
Something needs to be done. A friend buying a car accidentally stated the problem very well after I said the average HP in an American vehicle was 241. He said "I don't want my car to have average HP". Well, guess what? By definition not everyone can have a vehicle with above average HP.
Lutz, you have the tools. You've got efficient motors, large and small. And you've got the new direct-injection small gas engines debuting (starting with the Sky Redline/Solstice GXP) that do even better yet.
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Tagg 2:24PM (4/10/2007)
Lutz is a product man not a business man. He is great at managing designs and such but his business management leaves alot to be desired. He pretty much ran Exide into the ground.
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Chris Miller 2:25PM (4/10/2007)
How can you just 'pause' car derivations on a platform you just invested billions developing. Now that seems a little wasteful.
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iQuack 2:32PM (4/10/2007)
Fuel economy mandates are unnecessary because when gas prices rise, people don't buy gas hogs anyway. That's why Ford, primarily a truck maker, is in trouble now. But the government likes to interfere in the markets and CAFE is an example.
True, there are good reasons why aggressive driving is best done in a RWD car, but most people don't care whether their car is RWD or FWD which is easier to package into a lighter and more economical vehicle. Under some conditions, FWD is superior.
GM makes its money on volume cars--sporty sedans to be driven hard appeal to a small audience and their shrill cries for RWD sedans are best ignored.
What GM needs are stylish, solid, economical cars at favorable prices. If that means FWD instead of RWD, so what?
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carfan 2:34PM (4/10/2007)
Looks like #14 needs to go back to chemistry class.
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