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March 30, 2005

Context is Everything

By Bob Lutz
GM Vice Chairman

The media coverage on the auto industry of late has done much to paint an ugly portrait of General Motors. This happens when a company's financial results are not meeting projections and so I can understand and respect the increased scrutiny.

But I must draw a line between legitimate coverage and manipulating facts to create "news." Which is what happened when remarks I made in answer to a question at an analyst conference in New York last week were taken out of context and twisted just enough to cause panic among a lot of good people.

Many of you probably read something to the effect that "GM is considering shedding a brand." Let me say it now, for the world to hear: No, we have no plans to shed a brand. Period.

I blame myself, because I should know better. It's always dangerous to field a speculative question, especially in an environment in which we’re increasingly under the media microscope.

But, if you are interested, here are the facts. Buick and Pontiac, the two brands most often cited in these press reports, will be around for a long time, refreshed every year with strong new products. Just look at the G6, the Torrent, Lacrosse and Lucerne. Look no further than Cadillac, GMC and Chevrolet, and soon, Saturn, to see what our brand commitment is all about.

Remember, a lot of people said Cadillac was dead, and look at it now.

Frankly, I find it inexcusable even in today's "shock-type" journalism environment for the media to run with a story without clarifying the statements actually made.

Mark LaNeve, our sales and marketing vice president for North America, had it exactly right in an e-mail he sent to our dealers last week regarding this matter. "We are not discussing or planning the elimination of any of our brands. On the contrary, we're investing more heavily than ever on new products and marketing programs – GM is investing in all of its brands."

In the same memo, LaNeve also cited our intentions to "reignite Pontiac's muscular design and street credibility" and build Buick as a brand with vehicles that are the "quietest and highest-quality in their segment."

And now you know, with apologies to Paul Harvey, the rest of the story.

Posted by Lutz at 3:38 PM
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March 23, 2005

GM Performance Is Back!

By Mark Reuss Executive Director GM Performance Division

Bob asked if I would post a message here today to discuss a few of the new and exciting products we have coming out of GM’s performance realm. Many people say that Bob has the best job at General Motors, but I disagree. I head up the GM Performance Division, which we created about three years ago to to re-establish GM’s rich history for great performance vehicles.

To date, the GM Performance Division has helped create the Cadillac CTS-V and STS-V, Saturn ION RedLine, Pontiac Bonneville GXP, Chevy SSR and the Cobalt SS Supercharged. We also set a few land speed records at the Bonneville Salt Flats using GM’s Ecotec crate engine (179.381 mph in the G/BGL class), a record with the Saturn ION RedLine (212.684 mph in the G/BFA class) and posted a speed of 243.127 mph with a Cobalt SS Supercharged.

And we’re partnering with GM Racing on the CTS-V racing program, where we won our debut race at the Sebring International Raceway. In our first year of competition, we came away with four pole positions and three wins, to finish a a close second in the 2004 season. We're looking forward to another great season for Cadillac and a number of new speed records at Bonneville.

But this is only the beginning. This week at the New York Auto Show, we revealed our latest performance vehicles, the Chevrolet TrailBlazer SS and the Cadillac XLR-V. Both vehicles have received significant chassis and powertrain performance upgrades, and have been tested at the famed Nürburgring track in Germany. They have been comprehensively engineered to out-perform the best in class.

I would personally like to get your thoughts -- and I know Bob would as well. I just wish you could all experience them first hand!

P.S. In the latest podcast, listen in as GM's Director of High Performance Vehicles John Heinricy chats with host Deb Ochs about the all new Cadillac XLR-V.

Podcast feed
Or download the MP3

Posted by Editor at 1:28 PM
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March 21, 2005

Zeta Not the End of RWD Performance

By Bob Lutz
GM Vice Chairman

Some news broke today about a reshuffling of our product plan, and I just want to clear one thing up before people get carried away.

Yes, we have canceled our plans to build rear-wheel-drive vehicles off the Zeta architecture. But that does not mean we've canceled plans to build rear-drive vehicles altogether.

We did not cancel the Zeta plans to save money, or to divert funds elsewhere that would've been used for product development.

We are simply reallocating resources (human and financial) to pull some other programs ahead and get other vehicles to market sooner. The press speculates this means we're doing it to get our next-generation large SUVs and pickups out sooner. You could see how one might reasonably come to such a conclusion.

Rest assured, we remain committed to developing RWD, premium,
high-performance, affordable vehicles, perhaps even a few with a trace of nostalgia baked in.

Posted by Lutz at 4:25 PM
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Podcast Reveals Solstice Details

In our new podcast, host Deb Ochs interviews Clay Dean, director of design for small and mid-size vehicles, about the Pontiac Solstice, which goes on sale later this year. He talks about its development process, what colors it will come in, what’s the deal with those bumps on the back, and what the roof will look like.

One new feature of the Solstice is that you won’t need a transmitter or cassette adapter to listen to your iPod through the sound system. Its radio includes an auxiliary input jack for an iPod or other audio source. The radio will also come standard in the Chevrolet HHR, Impala and Monte Carlo, the Saturn Vue and Ion, the Buick Lucerne and the Cadillac DTS. There’s an interesting discussion of it at Autoblog. Tell us what you think of the podcast and the radio.

Paste this URL into your RSS reader to get the podcast:

http://fastlane.gmblogs.com/podcast/gm_fastlane_podcast.xml

Or download the MP3

Podcast help

[Editor's note: In his original interview about the Pontiac Solstice, Clay Dean gave inaccurate information on two aspects of Solstice performance. Its correct 0-60 acceleration time is 7.2 seconds, not 5.4 seconds. And it does not "pull over a g of lateral acceleration when cornering," as he said. The correct number for its lateral acceleration is 0.9 g -- enough to press you back in your seat -- but not close to a full g. The MP3 has been edited to remove the incorrect information.]

Posted by Editor at 12:40 PM
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March 15, 2005

Issues Management

By Bob Lutz
GM Vice Chairman

I thought The Wall Street Journal might feel a little bit left out after I singled out The New York Times in recent posts. So just to show that I’m an equal opportunity enjoyer of all the major dailies, let’s have a look at the WSJ review of the Chevy Cobalt from Friday, March 11.

(Here’s the link for registered users.)

The article starts off, “How hard could it be to replace the Chevrolet Cavalier… for Chevrolet, the answer seems to be ‘pretty hard’…” and from there it gets even better!

Now, I am not one to quarrel with any writer’s subjective interpretations or opinions. On the other hand, we can’t always sit idly by and let the press say things like, “There are places where Chevy took obvious shortcuts, like with its rear drum brakes. Are we technology snobs for believing, more than 40 years after four-wheel disc brakes first appeared on passenger cars, that every car should have more-efficient discs on all four wheels?”

Here’s a partial list of cars in the segment (and others) that also have rear drum brakes: Toyota Corolla CE, S, and LE; Toyota Camry; Honda Civic DX, VP, HX, LX, EX and Hybrid; Honda Accord; Ford Focus S, SE, and SES; and the Chrysler PT Cruiser.

Somebody with the time and the stacks of old Wall Street Journals should really take a look, but I would bet their reviews of most of these other vehicles don’t complain much about rear drums.

The WSJ adds, “The Cobalt's 2.2-liter, four-cylinder engine puts out 145 horsepower -- more than the Civic and Corolla, but those lighter cars manage to come across as more peppy … The Cobalt was brisk enough for merging with highway traffic, but the overall feeling from the engine is one of laziness.”

Strangely enough, the April Car and Driver includes a review of an almost identical test car. They call it “Plainly Good,” a reference to Cobalt’s exterior styling. The C&D article begins thusly, “Those who pray to a higher power for the revival of General Motors should note that in many religions the savior prefers to arrive in plain dress.”

What’s very interesting is that, as I waded through Car and Driver’s subjective praise, I discovered that their performance numbers put the Cobalt’s braking at the head of its class. Imagine! Drum brakes and all! Also, their clocked zero-to-60 time was 8.4 seconds with that “lazy” 145-hp, 2.2-liter four, which placed it second (to the Neon) out of a group of 10 segment vehicles tested.

Furthermore, C&D separately clocks the Cobalt SS Supercharged model at a 0-60 time of 6.1 seconds. The SS model will have a gorgeous leather interior; unique fascias, rocker panels and spoiler; sport-tuned suspension; a 205-hp supercharged engine mated to a five-speed manual; 18-inch wheels and performance tires, starting at just over $21,000. Plus, an optional performance package offers Recaro performance front seats and a Quaife limited-slip differential.

I’m sure the SS will be more to the WSJ’s liking — but we’d like to know what the rest of you think about it ...

P.S. Edmunds Inside Line also reviewed the Cobalt SS this week.

Posted by Lutz at 7:06 PM
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March 10, 2005

What I Meant To Say Was…

By Bob Lutz
GM Vice Chairman

Thanks for all the terrific responses to the new Cadillac BLS that we showed last week in Geneva. I appreciate all the positive feedback, especially from Americans who’d like to see the vehicle on U.S. roads.

But… I have to correct one thing that I wrote. The following sentence from my previous entry is a good example of the velocity of one’s words contaminating one’s intent: “It was developed specifically for European roads and drivers, and, as such, is not intended for American needs or tastes.”

Many of you called me out on this, and rightly reacted, and I’ll paraphrase: “Audis and Mercedes-Benzes and BMWs and most of the cars that we know and love — that’s exactly the reason we buy them… because they’re engineered for unique European requirements and tastes, and not for American requirements and tastes.”

The Cadillac BLS was designed and engineered for European roads and tastes, and I should’ve left it at that. Obviously, with the number of European cars that are sold in the U.S., there is a substantial segment of the American population that prefers the European driving dynamic. Nobody knows that better than I do, believe me.

What I should have said is that BLS is the first of a generation of slightly smaller Cadillacs, built on the same architecture as the Saab 9-3, that, for exchange rate reasons, we can’t profitably bring to the United States. So this generation is going to be Europe-only. Our current thinking is that the next generation will be available around the world.

Let me tell you, yes, I think this car would work in the United States, all things being equal, and it would be a great car, much like an Audi or a BMW or a Saab 9-3, but we can’t profitably do it this time around. Current thinking, as we all know, is always subject to change, but we’d love to see a vehicle like this in U.S. Cadillac dealerships in the future.

Posted by Lutz at 8:07 AM
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March 4, 2005

A Cadillac for Europe

By Bob Lutz
GM Vice Chairman

At Geneva this week, we introduced a brand new Cadillac for Europe, and some other non-U.S. markets, and I’ll tell you why. This vehicle, the Cadillac BLS, is about bringing the right products to the right markets, and doing it effectively and efficiently. It was developed specifically for European roads and drivers, and, as such, is not intended for American needs or tastes.

For a long time, GM acted like four independent regional companies. Those days are gone. We’re sharing as never before. Technology, design influence, common manufacturing practices… it’s all coming together. We’re realizing new levels of operating efficiency as a result. More importantly, we’re starting to deliver much more consistently on the product front – more sophisticated products, with the right level of differentiation by region and by brand.

And the BLS is a terrific example. It demonstrates the degree of differentiation that it’s possible to achieve with our global mid-size architecture. It’s a true collaboration of our global engineering and design teams, working together to bring a specific product to a specific market quickly and cost-effectively.

The design, unmistakably Cadillac, is the result of a joint effort of our studios in Europe and the U.S. The BLS will have Cadillac-specific technology in the chassis and powertrain that creates a distinctly Cadillac driving experience.

And the availability of manual transmissions, diesel engines and right-hand drive makes the product relevant and accessible for customers throughout Europe, including the U.K.

The BLS will be on the road in Europe within a year, and we’d love to know what you think of it — all of you, but especially those of you in Europe.

Posted by Lutz at 3:53 PM
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