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Only the Best

By Bob Lutz
GM Vice Chairman

HHR
2006 Chevrolet HHR

Earlier this week I was at the GM Annual Meeting and one of the shareholders asked me to give a glimpse into the future of GM’s product direction. As I was doing so, I decided that I should share my thoughts on FastLane since most of you were not in the ballroom at the time. So here goes . . .


There are fundamental changes taking place in our product development organization that add up to a winning formula. These changes are largely cultural, and as most of you know, cultural change often takes time. I’m sure some of you may have read Malcolm Gladwell’s book The Tipping Point, in which he identifies how minor trends become blockbuster phenomena. Well, I firmly believe we have reached a tipping point in our organization.

A few years ago, planners would sift through reams of data, segment the market, analyze and deconstruct the data until they discovered a niche in which we needed a new product. Once the need for the vehicle was determined, the designers were given a formula to work with. Not a blank canvas, more like a paint-by-numbers scenario.

Today, we’re operating on a much more emotional, creative level and our designers have been empowered to express themselves. Our winning products will not be determined by careful analysis; they will captivate and enthrall through imaginative design and flawless execution.

We’ll be introducing a lot of new products that reflect another new philosophy of General Motors, which is not to introduce vehicles that are merely competitive, but to really target being the best. This has, frankly, also required some recalibration of the internal culture, especially in the United States. And it’s taken some time to lift ourselves to the best international standard in sheet metal fits. Take a look at the upcoming Chevrolet HHR. I ask you to compare that $15,995 Chevy HHR –- in terms of sheet metal fits, hem flanges, the way all of the panels fit to each other –- to a Lexus GS 400, and tell me if there is any significant difference.

And, don’t forget to spend some time examining the beautiful interior. You could argue that in the past General Motors interiors were a little bit utilitarian. They were easy to keep clean, but they lacked charm, they lacked warmth, and they lacked attention to detail. Not any more. You’ll experience well-crafted interiors, great materials, knobs and switches that feel like they’re on an expensive Japanese camera, even in our inexpensive cars. That is the standard that the public expects — it’s no longer just a question of: Does it last? Is it reliable? Does it start every morning? Those are givens. That’s the transportation part of the automobile business.

What we are re-learning as a company is that we are not simply in the transportation business; we’re in the art and entertainment business. So, what we’ve got at GM now, is a general comprehension that you can’t run this business by the left intellectual, analytical side of your brain alone, you have to have a lot of right side creative input. We’re putting a huge new emphasis on world class trendsetting design.

I will tell you: in the next two or three years, you’re going to see us bring to market a product line-up that takes a back seat to nobody. And that’s a commitment on the part of the whole organization.

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