How We’re Improving Our Global Product Development
By Bob Lutz
GM Vice Chairman
Despite the current turmoil in the auto industry, I want you all to know that our long-term commitment to building exciting cars and trucks with high quality and dependability has not changed and will not.
As I told the Automotive Press Association today, our product lineup is getting stronger and stronger, and this is just the very beginning of our newly reorganized global product development program. Here’s how we’re doing things differently:
First, we now have people in place with global responsibility for design, engineering, manufacturing and product planning, and, starting January 1, we will have one single global design and engineering budget. That has never happened before at GM and, believe me, that was a big hindrance to previous efforts to produce component sets, architectures or products that are global in scale. No longer will one region be forced to turn down a program because it doesn’t have the budget to pay for it. One budget allows much greater flexibility in the application of product programs in all our various regions.
What’s more, it applies to not only to our material resources, but also to our human resources. Let’s say, hypothetically speaking, one of our regions for whatever reason has to lay off 50 engineers because it doesn’t have enough work for them or it can no longer afford them. At the same time, maybe another region is in need of 50 engineers. Under one global budget, we’d keep the engineers we already have, no matter where they are, and through the magic of information technology we can bring the work to them, wherever they may be.
Second, by coordinating product development work around the world, we’ll realize the economies of scale that a company the size of GM should. Our 12 engineering centers will be knitted more closely with one another and with our 11 design centers, all working together in lockstep, sharing their knowledge and resources in real time. This type of structure puts us more in line with the way successful automakers should be set up today.
In short, we expect a faster global portfolio turnover with less cost, allowing us to maximize profit on a global basis. We expect a reduction in our architecture count over time of 50% as we introduce more converged architectures replacing the regional architectures we have today.
For example, as we develop our new global mid-size architecture, which will replace such vehicles as the Opel Vectra, Chevy Malibu, Pontiac G6 and Saab 9-3, we’ll realize significant savings as a result of this new system. We’ll move from three closely related regional architectures to one global architecture serving nine different models in all four of our regions. We expect a 40% reduction in our prototype builds, a 20% reduction in material costs as a result of the common components, and 25% reductions in both engineering costs and overall investment. That one program alone could save us more than $1 billion over the course of its lifecycle. And ultimately that’s how success will be measured… how much we save, and how much we earn.
The third component to our new system is the fact that we’re putting in place global development centers for all our architectures in regions that have expertise for certain vehicles, and they will shepherd the architectures from cradle to grave. For example, North America will take responsibility for trucks and utilities and derivatives, Europe for midsize cars and Asia for small cars, sub-compacts and the like.
As we evolve, and implement this system fully, we will continue introducing brand new cars and trucks at a rapid clip. We have great stuff in the near-term pipeline – and even more to come.
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You have great stuff in the near-term pipeline?
You always do.
But then when the near-term becomes the present, the great is merely mediocre.
When does the great stuff actually start coming out of the pipe?
Any chance we’ll see any affordable small to mid-sized car from GM setting the benchmarks in any category anytime soon?
Or is GM going to continue it’s trend of making vehicles that are struggling to catch up the moment they reach the showroom floor?
Come on GM, we know you can do better. Stop overpromising and underdelivering!
Tell us about how the new family of sporty RWD vehicles will be available in 2 and 4 doors, with 4/6/8 cylinder engines, with stick shifts, and with a hybrid option.
Then tell us specifically when they’ll be available, make them look good, build them, and get them into the showroom on time.
Bob,
I think that’s a great idea, but what it could end up doing is more of the having several vehicles that look very similar, like the GMT360 line, where the Envoy, Trailblazer, Ascender, and Bravada look very similar.
Sam
Good to see you back, Bob.
And I say thank the lord that GM North America is only going to be involved in making trucks-that they can do.
It’s the cars that stink-the Cobalt, malibu, Impala, LaCrosse, G6 etc etc are all way behind the competition in terms of design asthetics inside and out, seat comfort, and plastic materials used inside the cars.
Let your global forces, which are far superior to what you have working for you in the US, design both your interiors and exteriors and lets see some competitive cars in the showrooms.
Now, just add No-Haggle Pricing like Saturn, and a TEN YEAR WARRANTY and GM has a chance to survive and thrive in this country.
Dear Bob,
You mentioned the G6 in your global redesign process. My girlfriend and I are currently looking into buying a new car for her. She is in her late 20’s and wants something that looks nice and has all the comforts that a new car should have. I did some research within our budget and got it down to two cars. The G6 and the upcoming Ford Fusion. My girlfriend took one look at the G6 and said I “NO”. The reason is that it is not a not a well appointed car for the money, the reason is the front end. I also felt that the front (Grille) reminds me of the ugly Pontiacs of the past. The point here is ditch the grille for something better designed and you might be able to up sales. If it matters we are out here in California, where I think GM is not doing so well.
Thanks and I hope this helps.
Impressive, being a GM driver and an MSIS student this is very interesting as well as encouraging. I like to see, no matter of what arena of competition, when people strive to be the absolute best and execute it, nothing compares. I will be looking forward to viewing the new vehicles as they come to market, eventhough you forgot to mention the rear drive architectures!
Bob, I had the pleasure of seeing your masterpiece, the Pontiac Solstice up close. For your first time at bat you hit this one out of the park and into the bay.
Your second and third at bat, with the HHR and H3 you hit the ball right where you were aiming, into the stands into the hands of GM’s new fans.
Let Wall Street know you are the Barry Bonds and Mark McGwire of the auto world rolled into one. After seeing the Solstice, the drop top demonstration, how it was finished off into the holes in the back. After feeling the quality of the roof fabric, the amazing interior, I am thinking like the French, it must be steroids.
Now you’re ready to go to the plate 30 times in the next 18 months. I feel like a Red Sox fan, next year can be the year.
Now I don’t know what’s going on in these crazy times but the return to the excellence of design and nastalgic forms is a welcome respite and a comforting reminder of less uneasy times, at least they were for GM.
A coworker who drives a Scion and is Scion’s #1 fan was carrying around a picture of the Saturn Sky and showing everyone what he calls his “next car”. The only argument between us now is which is better the Sky or the Solstice.
I am convinced that now while you are in your prime, it is time…
yes Bob it is time…
it is time to bring back the great cars that made the legend, the cars that made the legendary team from Detroit #1 and world famous from Beijing to Brussels.
You remember right? That Buick 8 I was blogging to you about?
I hate saying this, but why didn’t you think of this years ago? I think that you (Bob) have been at GM for over four years; why wasn’t this implemented then?
Uhhh, lets see: “Global Product Development”..Would that be like Holden building cars for Pontiac? Gee, that did wonders for the GTO. Not.
The majority of people (except us car guys) have no idea about platforms. However they do key in on the body. It doesn’t take much to tell that one car model has been doctored and added to another brand. That is where I would challenge your designers. Use common platforms, components, etc. but have each brand be very visually distinctive. Especially in the rear pillars, grillework, lights, and the like. Maybe even have modular roof inserts to change the roofline?? I would take it a step further and have them engineer in low cost yearly changes that would keep the excitement going. Grillework here, tail light there with substantial change impact. Heck they did it in the 50s-60s without computers. I know, they had larger economies of scale then, but you can do it on the cheap if planned correctly.
Thanks for posting the blog during these tough times.
The Saab 9-3x – Part 1
Here’s a question for Bob Lutz: Why can’t you engineer this? The Saab 9-3x could have been a breakthrough entry in 2002 into what is now a growing segment. What follows is almost a eulogy to a model Saab that would have set GM amongst…
It’s good to hear that GM is doing something to become more efficient. It sounds like your plan to restructure has potential. How about using this money you’ll save to develop some rear-drive, sub-Cadillac sedans? A V-8 Grand Prix with rear-wheel propulsion would make a buyer out of me.
And while I’ve got your attention, how about prodding your stereo suppliers to put auxilary input jacks (standard on Solstice, Impala, and Monte Carlo) on all of GM’s products? That is such a high benefit, low cost option to those of us with i-Pods (or equivalent). Now that I know that this option exists, I won’t buy a car that doesn’t have it.
Also, nice work on the new Z06. I’m glad that GM is focusing on overall performance (handling, etc.) and not just 1/4 mile times (not to say that the 11.5 1/4 mile isn’t impressive).
To start off, I would like to say that I am an avid General Motors fan. I grew up with GM cars and trucks and I have owned 2 myself.
I’m going to try my hardest not to mention any mistakes that GM has made in the past and concentrate only on the future, which is where we should all be looking.
RWD. Mercedes-Benz has been doing it for over decades. The Corvette is still around and gets better and better every generation. The Chrysler 300 and Dodge Magnum were enormously successful and have captivated the American public and press. Ditto for the new Mustang. A 13.5-second quarter-mile in a car that rides better than the new GTO and costs under $27,000. What a winner. GM needs RWD now. I has this for a number of reasons:
First, the sooner you introduce a RWD product, the sooner it will gain a reputation (good or bad). With an industry-wide shift turning away from badge-engineering and FWD, and turning toward RWD and AWD, GM needs to establish itself as soon as possible. If you come into the game too late, the market share will never be able to be recovered, and other rivals will have gained a repuation and following- which will in turn make it even harder for you to draw those customers later on.
Second, if you do release a RWD product, make sure its done RIGHT!!! Marketing should be done in a blitz fashion. Advertising on high-rated TV show premieres and finales; sporting events (Hint: NFL, Baseball, and SuperBowl); and movie theaters. Expose the product to the masses and word will travel fast.
The design of the vehicle should be done using designers that aren’t afriad to take chances. Who’s ideas aren’t shot down by cheif vehicle designers and engineers. (Hint: forget the SSR, Monte Carlo, Impala, Malibu, Grand Prix, Lacrosse, and Aveo.) Stick to what you guys came up with in the first place: The SS sedan concept; the Buick Velite (even with the incredible two-tone interior scheme which is by far one of the classiest designs to ever make its way out of a GM studio).
- LED taillamps (similar to the intensity and clearity of the STS) shoud be the norm;
- 17″ wheels should be the smallest wheel size offered on any GM product of any trim level;
- HID headlamps (and soon LED headlamps) and foglamps should be standard or optional on every vehicle offered- they are chic, look great, reduce eye strain, and are pure bragging rights!;
- Higher front ends (similar to the 300/Charger/Magnum, Mustang, Audi A8, and Bentley Continental GT, should also be the new standard- they look intimidating/powerful/menacing, but can be made to look luxurious. They are also good for future pedestrian safety standards imposed in Europe- which will impact designs significantly.
- Body color or chrome side mirrors. Get with the program! Black mirrors look rental-car cheap. Body-color compliments the car. Chrome is just plain vogue, adding a retro, upscale touch complimenting any other exterior chrome trim.
- Tinted windows are like socks. You can wear shoes and live without them, but having them is just more comfortable. Plus, most people from Gen-Y (including myself) like the “privacy factor.” (If you know what I mean).
Third, interiors. Mr. Lutz, people aren’t stupid. We want good interiors, sit inside of a Lexus IS 350, GS 430, LS 430, or an Acura RL / TL and you’ll know what I mean. People are starting to demand high quality interiors, something Toyota has been specializing in for 15 years and GM has always lacked.
- A power driver seat with adjustable lumbar and headrest is essential. A good driving position makes for a happy customer.
- Stereo. Mark Levinson, Harmon Kardon, Bang & Olufsen. The Acura RL/TL systems are truly amazing also. A DVD-audio package should be optional and paired with an easy-to-use DVD Navigation system.
- Use the Acura RL/TL and any Lexus with a Mark Levinson unit as your benchmarks. Audiophiles will grace your car with a cult-like following.
- Seats. The Pontiac GTO’s chairs and the Audi/VW Recaro seats should be your benchmark in terms of design/quality/comfort/support/adjustability. Suede is acceptable if it is high quality and used in good taste. (Hint: the lower dash, door panels, and center console of the GTO are faux-suede. Again, it adds that upscale touch).
- Gauges. Read: Toyota/Lexus’ electro-luminescent design, or the Acura TL/RL design. Absolutely no eye strain after driving for hours, and looks both elegant and sporty. Note: the steering wheel should NOT block the view of the gauges.
- Fit-and-finish, build quality, durability, low-gloss, chrome door handles, interior accents (REAL aluminum, REAL veneer, REAL carbon fiber), suede headliner, and other factors are a given: something that GM penny-pinchers have taken advantage of frequently. Come on Bob, charge an extra $500 for every vehicle GM sells and give the people something they want, and deserve.
To be continued.
I just wanted to be the first person to post here. It’s starting to get really interesting what the future holds for General Motors. I grew up in Singapore, and my immediate family mostly drove GM vehicles. Chinese Buicks, Opels, Holdens, and Chevys and those Asian cars are much more refined than North American GM cars. Now that GM is finally becoming more of a global company, with resources around the globe, GM can finally tapped into that talent of enigneers and designers from Korea, Japan, Austrialia, Europe, North and South to have a single theme and concept. For example, the Acura TSX is basically a European Honda Accord, rebadged as a upper-class car. Nevermind the fact, that is just a glorified Honda, just like all Acuras. But am still waiting for the next Camaro. Awesome!!!!!!
Yes, very wise to stop the silo mentality…in addition to offering so many brands and models, GM has handicapped itself in the past with nearly autonomous geo/cultural regions who don’t seem to share. This is great news!
will you please take over GM as CEO? And bring Iacoca out of retirement with you?
Welcome back, Bob!
Well, well, well…the recently scarce Bob Lutz returns to the blogoteria with this post. And it’s an informative one for those of us closely watching GM’s design-driven transformation. The post focuses on a reorganization of the company’s global produ…
Bob,
This all makes perfect sense. I personally wish the current Malibu had the looks and feel of the Vectra. Dumbing things down for America only gets GM into trouble.
There are people who actually like small to mid-size cars with performance and features like HID lights who find nothing in the GM lineup south of Saab for them.
IF you plan to continue as a full-line manufacturer, this type of thing needs to be addressed immediately. The SS line of Chevies is closer, but still suffers from the bland, dumbed-down styling. You need more manual transmissions in these cars and more available up-level features.
Thanks for keeping the blog up-to-date, and keep pushing for better product. It’s the ONLY way out of this current mess.
I think this concept works wonderfully so long as the baseline engineering target is set to a high bar. Great cars start with great engineering. Start with a great engine and a great chassis and subsystems, and then scale the car with the desired styling, features and trimmings to meet the desired market segment.
Not to be killjoy, but why is the GM 3800 still around?
In previous postings, you’ve noted how GM quality has improved over the years, but I maintain there’s a big difference between manufacturing quality (removal of manufacturing defects) and engineering quality. Where US automakers appear to be substantially behind is the latter. If you want Cadillac to compete with Lexus, where is the equivalent 300+ hp, smooth-running V6 engine to compete with the IS350 buttery-smooth direct injection powerplant? Don’t get me wrong, GM has certainly hit the ball out of the park with the Corvette. But compare the venerable Northstar 4.6l V8 with the new 4.2L direct injection V8 in the new Audi S4 RS?
BOB,
I hope GM globalisation will bring small diesels to the US. You have the technology already; now give us the great mileage. Hybrid hypola not withstanding, sell us granolas something you can brag about
Mr. Lutz,
First of all, I would like to thank you for all you have done for GM. Obviously I’m not an engineer or anything but I am a consumer so I have a couple of things I think would really help.
I love the new GMT-900’s. One way to make the gas mileage a little better on them might be to move on to a five or six speed transmission. i know the current four speed is a great tranny (i have it in my truck) but more gears will give better mileage. Also, when you finally build the new pickup dont make it too car-like like Ford and Toyota do. keep it a chevy, the fans will appreciate it, and tons of people will buy it.
im sure you hear this all the time, but we are ready for a new Camaro. if you keep the price around mustang levels it will sell like crazy!
thanks again Mr. Lutz, keep up the good work.
Uhh, isn’t this playing late late catchup to say, Honda?
The new civic is a global platform, but with very distinct regional styles.
The accord is a flex-size platform, both in length and track. The US accord is both wider and longer than the european, but they share a huge amount of common platform.
Crowing about PLANNING on catching up to where Honda and Toyota have been for a decade plus is hardly the actions of a company on the mend.
And the promises made in the past just fail to deliver:
The cobalt is a decent small car (I rented one the other week), but it doesn’t match the Mazda 3 (my favorite small rental) and looks like it loses to the 06 civic. Hit last year’s target, again…
And it only got ~25-26 MPG in mostly city driving. What happened to the 30/40 IN PRACTICE I get on my saturn? Has GM devolved so much in this critical area?
Likewise, the Malibu is nice (but why is the “Classic” being made at all? Every renter who steps in one is a sale for Toyota), but apart from the amazingly floaty feel (The toyota’s tuning knob is set on “bland”, some like it, I don’t), I prefered the Camry I rented the very next day.
You refuse to pick the necessary fight with the union to eliminate guarenteed jobs and reduce costs. You keep losing market share even in the face of outrageous discounting. You killed off a RWD sedan platform’s development to fund SUV development.
And you are selling off the PROFITABLE sections of the company (1/2 of GMAC mortgage, 2+ billion of GMAC’s loan portfolio) to raise cash.
In short, you keep making promises. But you fail to deliver. There is a reason for the “GM Death Watch”. And this feels like more denial.
Hi Bob
What worries me is that some people at GM might actually think this is radical.
We were doing this 5 years ago when I was working at Robert Bosch. And we were not exactly leading edge.
We called it the “follow the sun program”. As Germany went to sleep Australia woke up and started working on the same CAD/CAM projects, all linked up with massive bandwidth. (does GM ever talk to its suppliers?)
Now radical – that would be taking your whole engineering operation and moving it to India – I think that’s what GE is doing…
Bob,
I think that your should give your car brands a mechianical idenity as well as a styling idenity. All of the really successful brands have both. Eg. BMW is known for RWD and High tech engineering, Honda for FWD and high tech 4 cylinder engines. Back in the sixties when GM was king of the hill, all your brands had some unique engeneering
features that they didn’t share with the other GM brands. I think you need to return to this to give each brand some unique idenity.
Mr Lutz,
How about some information on the CAMARO, Will it live again or not. If so when?
Long overdue. How can a global company operate for decades without sharing innovation, ideas, design expertise, etc? A shame on GM for taking so long to recognize a dysfunctional organizational construct.
Now, the proof is in the execution. Sounds great but lots of comments out of GM sounded great. Roger the Dodger was going to beat Toyota at its own game and ended up spending tens of billions and got robots running in to each other.
Put an operations guy or gal in charge of the day to day transformation.
What about Delphi? What happens when the UAW contract is voided and the UAW strikes rather than accept >50% pay cuts and an end to guarenteed employment?
Yes, now bring over the Astra and don’t change it!
So about 6-12 months ago I thought you had a winner with the solstice and the G6 GTP coupe, but now, not so much. The G6 is an amazing car….oh wait, let me rephrase that, the G6 WOULD HAVE BEEN an amazing car 3 years ago. Now, it is just mediocre.
The Solstice, is the sexiest looking car at any price (at least the exterior). Too bad you got everyone excited about this car many moons ago and now can’t even get them out on the road. If you had gotten this car out 6-8 months ago I would have been impressed. Now, with all the delays, and disgruntled people who pre-ordered, its just pathetic. Don’t try to give the ol “we wanted to send them out the door right”. They should have been sent out the door 100% right, 6-8 months ago.
So my point is, YOU ARE ALWAY 2 STEPS BEHIND. You release a new car and….BAM, Honda, Nissan, Toyota….hell even Chrysler and Ford, update their models and have you looking like fools once again. I’m still considering the G6 GTP coupe because it is dead sexy and pretty classy looking, but I’ll need a few things for 2007:
-auxillary audio input or even ipod control support
-15-40 horsepower increase would be nice, but I would settle for the same 240hp with a 5-10% improvement in city fuel economy.
-nicer plastics, better fit and finish inside
Oh yeah, and perhaps you could actually get the car magazine industry to highlight the G6 GTP Coupe. Are you afraid to loan them one because you can’t take the bad news?
If you can keep up with the other manufacturers, you do have some very attractive advantages that will make for steller sales, instead of making up for missing features.
-Onstar-such a good feature, I wish Honda had it….
-built in XM, nice work
- Stabilitrak
-beautiful design (Solstice, G6)
This looks like a winning strategy. If it’s implemented correctly it should allow GM to overcome the one thing that has prevented it from being an industry leader: It’s own inertia. GM needs to be able to respond faster to changing tastes and conditions. With the higher fuel prices I’m guessing that someone is feeling a bit silly bumping small car projects and spending all of that money on new large SUV’s when what was really needed were replacements for the Cavalier and Sunfire. We now have the Cobalt, and there is no Delta platform Pontiac in sight yet.
One other thing, that I feel needs to be adressed is the accountants at GM. Particularly their outlook. Their mission should be, when presented with a design for a new car, is to find a way to get it done as close to the original design as possible. Using “invisible” parts such as fasteners, fluid resivoirs, and seat and window motors between divisions and not redesigning the parts for a new model that already work well would be ways to reduce costs.
GM really does need more flexibility in product design. Hopefuly this will be the answer and allow GM to quickly respond changing conditions. Also, take it easy on the chrome. By running the chrome over the bumper between the upper and lower grilles, Volkswagen has managed to make otherwise nice cars look aweful.
Saab news snippets
Bob Lutz addressed the Automotive Press Association yesterday, outlining GM’s plan for one global budget for developing new models. It involves a greater tying-in of product development, design and engineering around the world through the use of electr…
Bob,
I noticed on the G6 sedan for this year the interior is slightly more refined. Thats key. I say this because I think GM is adapting and learning. But from now on, as you know, a new model should roll off the line with the best possible interior and design (Pontiac should be looking at Acura and Audi for inspiration here).
Living in Japan, I was delighted to see Car and Driver give the Solstice the edge over the new Miata (excuse me, MX-5)! Ship a few here, Bob, and I’ll get in line for one!
Bob,
Gas mileage is important too. Take the Trailblazer for instance.. why not take that excellent 6 cylinder engine and use displacement on demand on it? Also..add a 5 or 6 speed automatic..with a “lockout” switch that prevents 5th or 6th from being used only when towing. Use that last gear for cruising under normal loads. Ill bet the mileage on that machine would jump 3 to 5 mpg at least. Use the technology..dont just brag about having it.
Bob,
In light of the rising prices for gas and energy, GM is in dire need of ultra-fuel efficient vehicles. I hate to say it but you’re seriously too late to the green party. Now, let me say that in no way am I a tree-hugging hippy, but everytime my Dad calls me he asks why we haven’t got a small diesel out yet? He’d be the first to buy it! Seriously, if you can get a diesel CAR or small truck to the marketplace within a year it would be a boon for the General. I’ve heard that you think it’s unlikely you’ll bring a small diesel to the US due to emissions standards. Well, Bob, don’t you think your talented engineers could somehow make it work? I really think you need to search high and low for the best small diesel out there (purchase it if you have to) and shove it in a car pronto! Do whatever it takes to make this happen as long as high quality and durability are maintained. Once press and word-of-mouth can get a hold of such an outstanding product, GM would have a huge hit on its hands.
Thanks for listening.
There is something to be said about GM recently in Brazil.
I’ve been seeing a lot of advertising lately on the new Vectra, launched in Brazil just this week.
There was a great teaser campaign previous to the launch of the car, which caused great anticipation amongst all kinds of public.
There were also great parties with brazilian celebrities, and still no one got to see the car beforehand.
I’d like to congratulate GM on the campaign and mostly on the blog, which brings customers and the company closer.
“For example, as we develop our new global mid-size architecture, which will replace such vehicles as the Opel Vectra, Chevy Malibu, Pontiac G6 and Saab 9-3, we’ll realize significant savings as a result of this new system. We’ll move from three closely related regional architectures to one global architecture serving nine different models in all four of our regions. ”
All that sounds to me like Auto Industry Communism
Hi Bob
I applaud your efforts to improve the GM product line. I just took delivery of a 2006 Chevrolet Impala SS it replaces a 2003 GMC Sierra that I enjoyed every minute of owning. My SS is the 7th new GM product I have owned since 1984 so the company must be doing something right, right! I think you would look at me as a “loyal” customer. You meaning GM management as a whole. So, why have I never ever felt as if my loyalty is appreciated? Part of building a better product has to be building a better attitude towards your customers. My choice of both the Sierra and the Impala were based on the fact that they are both built in Oshawa,Ontario at plants famous for quality. At the dealer level I couldn’t ask for better treatment but it sure would be nice if someone somewhere further up the chain said “Thanks” for sticking with us.
Hello Mr. Lutz.
You have said in the past that GM can not ’save’ its way out of the problems it’s in. It has to grow its way out by selling more cars and trucks. This makes perfect sense to me. I understand that an efficient structure helps enable that, but I’m not sure I completely understand how this structure is going to help GM design, build, and sell better cars and trucks (beyond the obvious reduced cost structure and command and control simplifications, which are very important).
What I’m most interested in is the regions that have expertise in a certain vehicle class get to ‘own’ the architectures from the cradle to the grave. Perhaps it is an oversimplification of words used for general consumption, but it seems like you might be trading one massive set of organizational silos for a new set of silos. For instance, if NA is solely responsible for trucks, then that implies that Asia or Europe can learn nothing about cars from NA’s experience with trucks (and vice versa). I can’t believe that’s true. I hope you’ve addressed this issue and if you can post here in more detail about how that process is going to work, I’d be most interested.
Thanks.
While I’m a little bit disappointed that future GM passenger cars won’t be quite as “American” as I’d hoped they’d be, if the American brands get American engineering and styling and are built by us, I’ll be happier.
And I’m hoping that moves like this will mean that we Americans will end up getting more and more unique product offerings in the future.
But the old architecture needs to go, and soon. And GM must begin innovating again and setting its sights higher than the current competition, so that future GM products will be class-leading when they’re finally out.
I mean, GM’s doing a great job of taking lemons and making lemonade with the ancient platforms that are still around. Wonders have been worked with that W in the now 19 seasons it’s been running. And the G/H platform has certainly come a long way since 1992. And I’ve just described Buick’s bread and butter here.
But we really need something really new, and fast. Refresh and redesign rates have got to improve. Toyota’s on your door and they’re immensely profitable even though their cars get completely redesigned on 5-year cycles.
Please, give us great Buicks that are worth the younger generations’ aspirations. Please give us Pontiacs that are truly and singularly distinctive and exciting, rather than pedestrian, and handsome Chevys that are the highest of quality and most practical in the segment. You’re making your job too hard by sticking by the old architecture.
Your righ Bob, we need global product development because while I was looking for Buick’s soul the Holden folks just made a dead ringer to a new Buick Grand National.
That Holden FJ Efijy is the kind of design Buick needs, and every post at gminsidenews.com agrees that the car is awesome and it has the soul of a Buick.
Bob I think you started in the auto industry when Kennedy was president, now I am 34. So let me tell you about my generation starved of design in the 70’s and 80’s save a Fiero here or a Camaro there. Let me tell you about lifeless design, disposable architecture and cars with no soul, lifeless but to function itself.
It’s not old school the pendulum is swinging back to the era of substance and soul and many automakers can not follow.
If Cadillac is king Buick is queen, and behind the bulging fenders is the train, that part of the wedding dress that drags on the floor. The longer the train, the more honor has the bride. Holden has got a long train and a lot of honor.
See Bob, I knew eventually we would see something like the Buick 8 come back, but this is the fastlane and it’s time to expedite things. I am not going to a lamb for a stake we have been starving for design too long now.
Concerning Wall Street. Now explain to them the way the automobile works, the car is not falling apart, just add a little oil and the engine will be fine.
But to suggest you sell the bank. That is like saying cut off your leg and hop on your bad leg and you will do better and win the race.
What is their suggestion for the common cold?
Stick a **** cracker up your nose to help you breathe, if you don’t feel better in the morning call Dr. Kevorkian.
…Now about those donuts.
Why isn’t GM making cars like holden, I mean its GM in australia, if those cars were offered here, it would be true american classic car era all over again, Mustang has gone back to the older look, along with the new charger, bringing back the GTO. We all know the public needs the american classic car era again, globalizing is not the right idea, we need the american general public to stop spending money on foreign products and own our own, like the other nations of this world do. Maybe the general public would realize how much better an american car is if you followed Holden’s ideals which resemble that of the classic american car.
Bob,
Forget diesel cars in the US. Just pop the Saab BioPower engine into an Envoy and watch sales leap, now that Congress is giving tax credits for E85 pumps. On E85 an Envoy should be almost as cheap to run as an Escape hybrid. Check out http://www.hybridcars.com/e85-hybrids.html for more on E85 hybrids.
Just give us a rear wheel drive coupe/convertible through Pontiac or Buick with a beautiful interior / choices of powerful (300+) horsepower V6 and V8 powertrains with Hybrid technology as well. You already have whatever platform you use for the CTS/STS to start with. Make it have some real value and voila, you’ll have some serious customers (or at least some serious interest). You guys have the resources to really outpunch the Japanese if you want to – so do it. If Nissan can do it with the M45/G35 and G35 Coupe, then I know GM can do it with the current CTS/STS. I can see it now, a super fine Buick Regal Coupe based on the CTS (smooth lines, real cool styling similar to BMW 3-Series or G35 Coupe) with the 320 hp Northstar engine in it and an interior similar to some of the new SAturns coming out. Maybe even have a Saturn version of the same car – call it the Saturn SC or something. Have a Saturn SC350 and Saturn SC460. You could price the Saturn in the mid to high 20s and the Buick in the high 20s to low 30s – they’d sell like hotcakes. Then, bring out a Chevrolet version of it, call it the Camaro – put the OHV small block engines in that one. It should come standard with that new 3.9L engine and have 5.3L and 6.0L options. The Camaro should be totally meaty, very muscular. The Saturn and Buick should be elegant (like the Sky and the Lucerne) – a Pontiac would be more like the Chevy, only with Pontiac-esque styling cues.
I don’t know, this just makes sense to me. Why follow when you guys can lead. Get back in this game fighting hard, with innovative, cool product. Advertise the h**l out of it. Get on the airwaves and really talk about the value your product delivers.
Also, watch some of the import car companies TV commercials – note that they appeal to a younger, hipper audience. Perhaps those strategies would work for divisions like Saturn and Buick.
Also, give Cadillac a more mature image (like Lexus). Playing Led Zeppelin music is not a good marketing strategy for Caddy – should play more Moby style music.
Also, phase out that low horsepower 3800 V6. We all know its profitable, but c’mon, its the laughing stalk of the automotive press. I was in utter disbelief when you made THAT the standard engine on the new Buick. C’mon, at least give it the 240 hp 3.9L.
All that theory is a good view of the future of the industry, and the tendency of making more sinergies, more collaboration bewteen brands and engineerings centers, more standarization in processes, parts, design…. and how to improve the usage of the limited resources and to be competitive in time and cost.
But in alll that theory there is one problem, and in you speech we can see it. All of that globalization of GM and its brands, all that integration and common ideas, more standarization and so, is good for GM and its brands, to be competitive against the new threads, but……..what’s the benefit for the customer?? you only talk about GM, reduction in costs and all of that, but the customer don’t understand about costs, sinergies and all of that Business strategies, the customer want a car that meet its requirements, needs and now a days its more difficult and more important to show the benefits of your product against the rivals, for this reason, with a big standarization its taking more importance, the brand image, the design and all that features, because the cars are becoming more like the computers, with less emotion, less driving pleasure and less passion for the people who likes to drive its car.
That’s why in the future, if you are taking this way, as all the industry you must understand that with a big sinergies and few autonomy of every brand, the customer will see few added value from one brand to another in the GM brands if it compare one to each other. That’s why is very important to know exactly what autonomy to give to every brand, to innovate and offer to the customer added value, not only a standard technology that can be found in every car in every place, and the most important at low price in its rivals. Taking the example of Saab. Its important that Saab can take the opportinity to share its technology with all GM and also take advantage of the leverage of the GM resources, but also its very important that can apply its own ideas and technology in some strategic points to give to its customer the Saab values and not only some simple Saab cues, as the key between the seats, the warparound windshield or curved front lights….if we only find in a Saab those type of brand cues, then all the effort to standarize, reduce costs will be a fiasco, the customer will not apreciate that, they will se that the Saab its only a modified Opel because they don’t feel the added value of the car against the others.
Also its very important that in a globalizing company you have an impacto of cultures, and thats why the GM-Fiat joint venture was a fiasco, as many other jointventures and similar. You must have clear how to apply every culture in every brand, how to manage the strenghts of every culture in the engineering and the global Teams to make a good basic engineerings for every brand. That’s why its very important to give to every brand some autonomy, because if they field that they are not able to give to GM and its brand some of the core values, then the collaboration will not work. Its important to have a common basic engineering to have a strong platform and engineering to go ahead and every brand can meet its requirements to give added value to its customers and the variety that the market needs and also the passion to avoid that the industry and automobiles become a “commodity”.
Mr. Lutz,
When would we wake up and realize that the root cause of our issues lies right there in front of you: the product development process. What does it take to realize that the process between design, engineering, purchasing, manufacturing is the weakest link. GM needs to deep dive into those organizations’ processes to destroy each non value added process and to create an efficient flow to harmonize all those organizations. Once GM decide to simplify those processes, then you will be able to deliver great cars and trucks at the right time and for the right price.
I used to buy a new GM (Chevy) vehicle every three years but I lost interest when they lost RWD performance cars. I recycle my current fleet using GM Performance parts (or third party vendors for hard core forged parts). I was going to buy a new Corvette in ‘96 but I couldn’t fit in it. (Actually I was to tall for the Caprice as well). I feel that GM is barking up the wrong tree with SUV’s (though I have owned two Suburbans) I won’t buy a new one as they are not as well made for off road use as my old ‘87 K20 FWD Suburban which I just put a new motors and transmissions in. That Impala SS I looked at in ‘96 was nice but can’t compare to the head room in my 502 powered ‘85 Impala. I am concerened about gas prices so I don’t drive it as much as my new project which is a 406 SBC in my ‘89 9C1 Caprice sedan. By the way I bought a 454 for my last remotor on the Suburban so some people really are not interested in EcoTec 4 cylnders (my last 4 Cylinder car was a Vega). I have owned 27 Chevy’s in the past 40 years and the only 6 cylinder car was a ‘61 Corvair Moza 4 spd convertible. I always bought the highest performance package available. Which is my last purchase ( the wife wanted a “new” car) was with Chrysler, and ya It’s got a Hemi. Thanks for taking the time to think about performance; when you build one I can fit into I might look back to GM.
So Bob, when is that Camaro coming? You know you want a slice of those Mustang sales.
Mr. Lutz,
Why not the following:
1.Small open-air Hummer to compete with Jeep Wrangler.
2.Stripped Corvette at lower price (think Porsche RS America).
3. Solstice Coupe.
4.V8 Solstice.
5.4 door sport sedan based on Solstice platform.
6. A new Buick Reatta (don’t laugh–hear me out) convertible based on Solstice, but geared toward Lexus/Buick buyers (v6/automatic, lots of leather, quiet and smooth).
Finally, offer On-star on every car.
Bruce Sherman
Oakland, Oregon
Buick Reatta? no way!
Global Motors
One of the great ironies of what has come to be called globalization is that the very people who are…
Onstar will be on every car. Remember? That was the HUGE secret surprise.
I am extremely disappointed in GM in general, and Buick in particular, at this point. Your efforts to attract younger buyers will NEVER work if you continue to put cars out late. The Lucerne should have been available several months ago, yet it won’t be available until late December, at the earliest. And even when it is available, one of the interesting technological features, the navigation system, won’t be available until “late in the year.” That apparently means late in the model year.
If you really want younger buyers, you need to include the technology from the beginning and provide your models early in the new model year. Buick has completely dropped the ball on producing the Lucerne. It apparently is time to look elsewhere.
Gm is in transition. So is everyone. Until another Nicola Tesla appears and can redefine energy production via alertanative sources, what can be done?
Why not reintroduce power adders like turbochargers?
Or, turbos with sliding vanes? Or an electronically controlled rotary vane supercharger?
Why not employ self energizing/activating intercoolers? Simple, old school technology.
Hybrid mechanical technology is a simple first step toward weaning us off of fossil fuels.
Surely the company that brought us the Syclone/Typhoon can redirect their brain power to an efficient performance vehicle.
People that believe that performance and efficiency are mutually exclusive need to go back to school.
Just another thought on platforms… Consider creating a new “standard” by having a dashboard with compartments with changeable inserts for installing present & future technology. Make the compartments the same size on all models. Just have different cover plates for cosmetic variations. Almost like plug & play, but don’t go that far because wiring will always change. Just standardize the compartment size and how the technology unit could click into place. Get rid of the OEM radios that only fit that years model. Set that standard and every electronics maker will cater to your needs and lower your component costs. They would be glad to provide harnesses, electonics, etc. Customers could then order any electronics they wanted with their car or add more later. As the vehicle gets older, they can still update their electronics by easily changing out units.
Bob i know its big business GM is worried about and Gm seems very administrative right now. But, the only way your going to please the people is to give them what they want. GM is to big of a company to have everyone thinking and no one building. Give us the new cars, especially the Buick Velite.
General Motors updating Global Product Development Strategies
Bob Lutz talks about “How they’re Improving Our Global Product Development”
Read what he says
here
Bob
I have been disappointed with the domestic car companies for some time. One of my main areas of contention has been the seemingly abandonement of cars in favot of SUVs. I know SUVS were cash cows and that they helped keep the car companies afloat but I think the big 2and a half made a mistake by virtually ignoring cars over the past 10 years.
One big mistake the auto companies made was in ignoring coupes and allowing them to atrophy and disappear. I think the auto companies made a mistake years ago when they abandoned the practice of offering the same car as both a sedan and coupe. By only offering coupes as specialty cars the automakers allowed coupes to be marginalized. They required individual marketing effort and were rarely updated as they were lower volume cars. Instead the automakers should go back to the prqctice of offering a standard car as both a sedan and coupe. Agood example of this problem is the Monte Carlo. The Monte Carlo has become stale. GM would have been better served offering an Impala coupe to complement the sedan and saving the Monte Carlo name for something special in the future like a 4 passenger coupe based on the SSR
In short I think the automakers should take exsiting cars and offer them in more body styles than just sedans only. A good example would be a 2 door CTS or a
2 door STS called the Eldorado.
Another idea would be to offer a stretched 4 passenger soltice coup and sedan alongside the existing soltice roadster. In other words take existing cars and offer more body styles. This way GM can leveredge its marketing over several body styles under one name. Furthermore the cars would be all updated at the same time.
More body styles under fewer names.
I hope that under GMs reorganization at least some cars will still be engineered and designed in the USA.
“We’ll move from three closely related regional architectures to one global architecture serving nine different models in all four of our regions.”
Hmm, this may work if the cars will still have looks and features that correspond to the wishes of the regional consumers. But if this is a ‘one size fits all’ strategy, it’s doomed. Do I have to remind you of the Ford Mondeo, that failed attempt at building a world car???
America has the finest engineers on the planet. I am glad you are using the power of high speed telecomunications to keep your engineering workforce together. Sadly I have yet to see anything from GM that excites me.
I am looking for a car in exactly 1 and 1/2 years time.
I have a family of 5.
Is there anything that will deliver over 40MPG that I can afford being middle class?
I do not expect gas to go down in price. In fact I think it will creep back up.
As I see the latest offerings from GM being BIG expensive cars that get what
for MPG? Do they even get 30MPG in the city?
I see no reason to look at a GM car. In fact its just the opposite. I have never been more unexcited about the American auto industry.
My advice is to
make a light weight hybrid plugin based on the Saturn platform (since its lightweight) that wont make me broke.
But thats me. I think the Board of directors should take a LARGE benifit cut and
buy more engineers to make what we need NOW not tomorrow.
If not there after 20 years of GM ownership I will be buying forgien. They will get my money and GM will get
spit. Honda, Toyota, Lexus are way ahead in tech that is here NOW. No half baked solutions. I assume in 2 years they will even be farther ahead.
How much more can GM stock slip into junk bond status before you realize it?
Bob
Mr. Lutz: The new strategy of combining development of models and sharing architecture can be tested as soon as you could revise a few successful European models for the U.S. market. It would be a good time to “see what sticks” to the U.S. market, GM has seven strong European models with another five that have a chance of finding a market in the U.S. The first three would be Opel Astra 3 door Sport Hatch, 5 Door Hatch and Estate and the should all be new Saturn models by the end of 2006 with the Astra Twin-Top a spring 2007 addition. There should be Pontiac derivatives of the 3-Door VXR and 5-Door 204 HP Turbo models with a 2-Door Coupe version of the Twin-Top all available with the panoramic roof option and AFL lighting. After reviewing European media opinion and the sales figures, these models should be hits in the U.S. market as they have excellent styling and provide a solid sporty drive with plenty of smooth power and good fuel economy. They stand up well in reviews against the best of the European competition including the Honda Civic, and have a more aggressive look than the new 2006 Civic lineup; these vehicles could easily be the new leaders of the sport compact segment. The new 1.8L with 140 HP and 5-Speed would be the base drive-train for our market with the 6-speed Automatic from the Zafira as an option (small engines need more than 4 speeds – and for once, don’t give the U.S. media a reason to talk this excellent product down.) Next step up would be the 2.4L from the Cobalt mated to either a 6-speed manual or 6 speed automatic with the 2.0L Supercharged Engine found in the Cobalt SS as the next step up. The top model would be the upcoming VXR 240 HP Turbo engine. A 4-Door sedan version needed for the U.S. market could be the new Brazilian Vectra this vehicle has attractive styling, a long wheelbase with excellent rear seat room and the slimmer width of the Astra available with the 2.4L used in the Cobalt and G6. The real market buster would be a 3.5L V6 powered model that would provide performance with excellent fuel economy – I have never figured out why GM did not use this compact V6 in smaller vehicles. It is logical that the General Motors division with the most experience building small sporty vehicles should create the models in it for GM. This is not a knock on the Cobalt which is a solid and successful entry, but there only needs to be one design for the world market.
If emission laws would permit, it would be nice to see the 1.9TD with 6 speed Automatic from the Zafira. Speaking of the Zafira, this is a model that could be a surprise hit for Saturn – as it gives them a solid 7-passenger model that handles more like a sport compact. I had the pleasure of driving the Hydrogen Fuel Cell powered first generation Zafira at the San Diego Auto Show in Motion and found it to handle well, and ride smoothly. The Hydrogen Fuel Cell power train also performed flawlessly, providing good power without any problems. The new Zafira has even better styling and is larger in all the right areas than the old model. The “Flex7″ seating with the adjustable middle seat and fold flat third row looks appealing and while not as elaborate, would be a good counter to Chrysler’s successful “Stow and Go” system. For the U.S. market the 2.2L would be the base engine with the 2.4L and option – again the real market buster would be a 3.5L V-6 with 6 speed Auto.
Another entry would be the Meriva with the 1.8L 140 HP engine and 6 speed automatic with an option of the 2.2L Cobalt engine if it would fit. The FlexSpace spilt sliding/reclining rear seats the convert into twin buckets with console and large cargo space are attractive features in this market. It has a small ute/van look that may prove popular in the coming months, higher gas prices will make consumers take a look at any vehicle that gives them some of the utility of larger SUV’s but with better mileage.
The new Corsa 3 Door and 5 Door as a Saturn and/or Pontiac model would give GM a proven Sub-Compact, once again with the 1.8L engine. With a smaller 1.4L or 1.6L and optional 5-speed Easy-Tronic transmission could be offered later. GM must introduce some strong entries in this market, the Aveo proves that there is a market for smaller cars for Chevrolet and sportier Corsa models can be successful for Saturn and Pontiac: giving GM effective counters to the Toyota Yaris and Honda Fit due for U.S. market introduction.
Lastly from Europe would be the Combo Tour that has an oddly attractive style and has a ton of space in a very small package. The commercial van version Combo could prove extremely popular with inner-city delivery services and other businesses hunting for a vehicle capable of handling bulky but lightweight cargo. Again using the 1.8L 6speed Auto as a base, using essentially one power train will greatly reduce certification costs and simplify logistical support of parts to dealerships. If emission laws permit the 1.3TD or 1.9TD could be options.
The final model would be the Australian market Holden Cruze, this small ute has attractive styling for an entry level vehicle and offers 4WD for light off-road/beach use. The existing 1.5L power train would probably do, but a 1.8L with a 5-Speed auto maybe better for the U.S. market. This is the dark horse of the lineup and one that could create the most buzz. Just as the Scion xB was expected to be a flop, and the least popular Scion, it in turn sold well and became the most recognizable Scion. Young buyers like to be different and something like the Cruze might give them that.
These vehicles give GM models with a look and feel that GM has never offered in the U.S and entries into new markets, while not all models maybe successful, it is still cheaper to try an existing model that is new to the U.S. market than spend millions of dollars on a completely new model that may not catch on. Also, what does catch on can be used to design future products with less risk. The vehicles mentioned could be in the U.S. market before the end of 2006, early 2007 at the latest, and for GM time is of the essence. Thank you for your time, and I think you are really on to something with this new Global Product program.
Mr Lutz:
I thought that the 2004 to 2006 GTOs were supposed to be a “global platform”, but much to my dismay, they were not available in Canada. I guess in Mr Wagoner’s mind, Canada is not part of the globe. I am hearing rumors in the car magazines that a new 2008 GTO is on the way and that it may be shown at next years NAIAS in Detroit. At that time you should let the public in Canada know if this car is going to be sold here. Somehow you guys can manage to modify every other car in GMs lineup to meet Canadian Federal Regulations except for the GTO. That says a lot about GM’s interest in people who like performance cars up here. One last thing,…for your edification…. I am never going to buy one of those silly Monte Carlo SS peices of front wheel drive junk. You guys can put whatever kind of V8 engines and #3 stickers on it that you want. That is the worst car marketed in North America and GM is marketing it to me. In my opinion it stinks in all aspects. I will buy a Toyota first.
One thing you seem to have gotten right is the LATCH systems in your cars. Aparently Acura and Toyota and others dont put a latch in the center rear seat, or the center rear seat is not flat enough for an infant car seat to fit. The child seat install technicians said they have the best luck with latch systems in Pontiac Grand Prixs. Something else you dont hear about but GM seems to be doing the best in! Thanks
MR Lutz,
I hope you are reading these comments because I have read them all and there are some excellent points in here. Here is hopefully some more.
1/GM is MISSING the boat on Diesels!!! I am sure you have driven the new ones. Spectacular. Let’s look to Europe. Over 50% of their market. You have the great Duramax Diesel but no planned Diesel program in your small-Mid-sized cars. This is a mistake. 3Bucks a gallon and GM needs to Re-think this whole deal. There is something to be done and you have the worldwide ressources to pull it off. Torque, Mileage,durability, and low maintenance and fun to drive. Aveo with a small TD would be superb. G6 Sedan, with a 2.0Liter-2.5Liter TD is a car America needs now. Would it sell like hotcakes??? NO. but it would be a start and in limited volumes Americans will catch on. The japanese will probably beat you to this next wave and the gremans are already there with VW selling every Jetta it can get it’s hands on. When they put a TD on an Accord, Camry you will be sucking wind and saying I wish we had done that. Maybe it’s in the “pipeline” but better speed up the flow. gas is not getting cheaper.
2/Performance. Camaro is so in need of a comeback on a medium basis. You wont outsell Mustang but there is a business case for 100,000 car per year for sure. Take your great 3.9Liter powerplant with the 6 speed and that is the base Camaro….with a world class “bark” at idle and dual exhaust not that crappy single avail on Mustang. The base car is where Ford is vulnerable. It just aint that good. When a guy buys a base car he does not want to “feel” base. he wants sound performance, look and price. The V8, I think you guys know what to do with it. You have LS1’s, LS2’s , and many more engines to put in the car. Think smaller, lighter, faster, more efficient and world class interior. Make the seats the equal or better of the GTO. The market is waiting. Are you going to respond??? And dont wait till 09….way too late Bob.
3/ Small -midsize cars. Anyone at GM ever driven a new Mazda 3 GT(coupe or sedan)???? Spend a week in one Mr Lutz. GM has NO car like it. The seats have a great cloth, the dash and radio set up is gorgeous, the wheel(3 spoke) has remote buttons like the expensive cars, the 2.3Liter engine is out of this world. Quick, very smooth and quiet(could be torquier). Nice touches abound. reflective lights base of rear bumper, small euro lights that flash on side of fender when flasher is on great for lane changes,absolutely world class shifter, like on a smooth ballbearing , color keyed everything(grille,mirrors,bumpers etc….). 17 inch wheels!!! and a suspension that goes through the corners like no small car I have ever driven.
GM needs this car/quality in the Cobalt/G6 line. Where is it???…
when you build it consumers will come. The reason you are challenged as a company is because your cars are comitteeied to death by non car guys/gals. Yes, you are a car guy. But your people are generally not. There are products of brilliance at GM (Corvette, G6 Coupe which is a styling winner….) but your small car lineup continues to suck badly. Look to the world leaders and build one out of the park. They are beatable. We are all waiting.
Bob,
I never owned a GM car and am only contacting you because it is part of an assignment for a writing class. I am wondering if the information you post is vetted by GM and whether you do your own writing or an assistant does. I have included my email. Thanks for your time.
Geeta
Bob, I’m the Brazilian one which commented your trip here and your impressions with GMB’s ability of re-using previous tooled parts (our new Vectra is an example of it, using parts from Astra B and Zafira A).
Well, as I said before, GM do Brasil is the local brand which produced more front-engine, RWD vehicles in my country. Take all Opalas, Chevettes, Omegas A and their derivatives and you will something in the count of 2 million units of cars with this configuration. It’s a production number of FR cars and for so long time (1968 to 1998) that put Ford, the second bigger producer of FR cars here in Brazil, to shame (they only made the Galaxie family and the Maverick, in a period from 1967 to 1983. Combined, the number of Ford FR Brazilian cars is something less than 10% of all Brazilian GM’s FR production). So, as you can see, GMB and FR Brazilian cars walk side by side.
But, what we have now? Celta? Corsa? Astra? Zafira? Meriva? A new Vectra? OK, it’s a good portifolio (GMB’s lineup is the most diversified of Brazil), but what did you said to the ones who bought and liked the Opala from 1968 to 1992 and the Omega A from 1992 to 1998? “Sorry, it’s inviable to produce another front-engine, RWD decently priced big car and all we can offer you is an Aussie Omega with stratospherical prices”? No, I can’t believe this. Both cars had a faithful audience and their fans were left behind when the Aussie Omega prices rised to stratosphere, part of it due to our currency and import taxes. But the other part of it was due to the decision of don’t produce RWD cars here. Nowadays, the cheapest RWD car sold here is the BMW 1-Series, a very expensive compact and very, very far from what an Opala or Omega A driver would want: a big, RWD, spacious and affordable car.
Even with the debut of the new Vectra, there’s still a price and size gap between it and the Aussie Omega, which an average mid-class Brazilian can look only if it fixes the look in the clouds of the sky. Opala wasn’t any kind of only-for-rich-people’s car. A ride which sold 1 million units and in the first half of the 70s, was outsold only by the Beetle (well, Opala wasn’t exactly a people’s car, but wasn’t unreacheable for our mid-class, being one of the most common vehicles) can’t be considered out of the average Brazilian when it was brand new.
Where I want to go with all this explanation? With these global budgets and unified development of new products, give a little more challenge to the Brazilian boys and Ray Young: let them make a new Opala and you will see something like happened there with Chrysler 300: the people who liked the good old RWD cars will go in crowds to a new product like them, if it’s decently priced and offer a good technology pack for what you pay. And also you will have another faithful audience: the government orders (hey, today’s ride of our president is an Aussie Omega, after decades of only Brazilian RWD cars. It’s a shame to see the chief of one of the biggest producers in the world in a foreign car), the executive niche (hey, even the Aussie Omega is far from them) and other purposes which are missing a good RWD, Brazilian car.
Well, with the unification, why don’t phase out the Family I an II engines and replace them with more modern Ecotec units, converted to flex-fuel tech. One of the problems of today’s Brazilian GMB products is their poor fuel economy when compared to the competition. We can also point that they’re have less horsepower and specific output than the rivals. Hey, it isn’t impossible to produce more modern units here in Brazil. Renault does it, Peugeot-Citro√´n, too. The EA family of VW engines has also a good stage of development. All the Minis are powered with Brazilian engines from Tritec. So, it’s time to shake the dust in GMB and put it more in this global project.
GM still just doesn’t get it!
Beyond all the excellent comments posted here there is still a fundamental issue yet to be addressed by management… stupidity!
Prehaps I’ve got it all wrong. Yeah, you guys are geniuses, what you really want to accomplish is to bleed this company dry, collect your lifetime pensions and “golden parachutes” and walk away to a better job. Hey, it worked for Martha Stewart.
How else can you explain years of moaning and groaning about unfair global competition, safety and emmissions legistlation and other “obstacles” that keep GM from it’s rightful place as the preiment or “world’s greatest (greediest) car company?
As painful as this may be to read, it’s true! Since the 1980’s GM has lost it’s way in design, engineering and style.
Here are examples:
- Instead of cars, GM embarks on building SUVs because they are more profitable. Cars look like cookie cutter crap, SUVs aren’t much better but make a ton of money because most people are too dumb to pass up continuously subsidzed pricing in the form of rebates.
- Perhaps one of your geniuses from finance can tell Americans who bought your products prior to the “massive rebates” offered this summer how good they should feel to own a GM product. One that loses it’s value faster than imports due to diminishing value attributed to continuous “fire sale rebates?”
- It’s not surprising that even as recently as August 2005 while gas prices were skyrocketing, GM North American management abandoned plans to jointly develop a new RWD car platform with Austalia due to exceptionally poor quarterly losses. Instead, what does GM North America decide? It proceeds to show the world just how “smart” they really are… GM announces it will invest in new line of SUVs – How brillant, how insightful, how much longer till this company goes belly up!
While Honda, Toyota and the rest of the world are developing hybrids, hydrogen and alt fuels vehicles and ramping up production where is GM? Oh yeah, the world’s greatest just annouced it is “partnering” up with Daimler Chrysler to “START” developing it’s “own” hybrid vehicles. Are you guys sure you aren’t being hasty about this! Maybe you ought to wait for gas to hit $5/gal before starting?
Why does GM continue to design and build vehicles that resemble appliances? Your designs are so bland (car and trucks) there isn’t one GM model today I would care to own even if it were half the price of the nearest competitor. Look at how you have cheapened the Corvette, it looks like a generic caricature of itself.
If you ask the average American who is past the age of 45 which GM car they would want, the answer is almost always a 60’s-70’s model Impala, Riviera, Seville, Tornado, Eldorado, Camaro, Chevelle, Corvette or other. Oh yes, people still remember these cars! Can you honestly believe anyone would ever cherish a 1982 Cadillac Cimmaron, 1985 Pontiac STE or 2005 Chevy Aveo!? Thought so.
One of the biggest and longest running problems GM has is inbreeding. For all the talk of world engineering, every car it makes has the final stamp of approval of someone from Detroit… and it looks like it. Why do Americans love foreign car styles so much? Because they are interesting, exciting, innovative and usually have better quality.
Take the Cadillac CTS and STS, specifically the models exported to Europe (essentially the same as the NA versions). Every foreign review of these cars is justifably critical of the use of poor quality materials and eccentric styling (i.e. cheap imitation wood and oversized steering wheels). You think they’re wrong? Just why is the steering wheel so large? Were these appropriated from your SUVs to save money?
Why else have most Americans foresaken domestic cars for imports? I will tell you, people would rather waste money on a Euro trash like Mercedes whose quaility is probably lower than GM because they are treated well.
How well does GM treat a customer with a failed transmission or a leaking power rack and pinion? Not very. Why, because there is too much short sightedness and no long term vision on how to retain customer loyalty and good will. Instead, dealers gouge customers by charging for diagnostics first to determine if a problem is under warranty before making warrantied repairs! Do you think Toyota, Honda and Nissan operate this way? I can personally tell you no.
Oh well, maybe you’ve given up on America? After all the cost of doing business, the unions, the competition… What is the old saying, when the going gets tough, GM gets going. I suppose that is why China must seem so attractive to you guys. After generations of riding bicycles, your cars must look like space ships to them? Question is, where will you go after they start driving Hondas, Toyotas, Nissans, VWs and BMWs…? Better start thinking, the clock is ticking and you’re running out of excuses!
Bob, I had such high hopes for you after you came out of retirement. I suppose the GM jaugernaut has proven to be too much for even someone like you? Too bad, if only you had known. Even Johnny Carson knew to leave when he was on top. Too bad GM will be your last gig, hopefully it won’t come to define you?
Is their a 4.6l v6 in GM’s future pickups? I read it somewhere. I’m guessing a chopped 6.0 v8 like the 4.3 off the 5.7. Please let us know.
I had decided I wanted a Buick Terraza based on its good reviews, however decided against it after driving it for the following reasons: 1) The armrest on the driver’s seat is too low to allow for comfortably resting your arm while still holding the wheel (my previous Windstar was much better). 2) LATCH system tether opening on the back of the seat is not large enough to accommodate the hook on my child’s car seat (the Grand Caravan does a great job making this visible and large enough). 3)No “cubby” areas on the dash to park things for short periods such as turnpike or parking garage tickets. 4) Sliding door button that is near the door itself is hard to find when you’re on the outside of the van (much larger and easier to see on my Windstar). 5) Poor pickup/acceleration. 6)Headphones for the DVD not as nice as the GMC/Chevy/Cadillac sport utility headphones; volume control more difficult for children to manipulate. 6) No grocery bag hooks on back of the 3rd row seat like my Windstar, groceries will tip all over the back. In short, a lot of hype over nothing new. Wendy
It’s time to cut models and spend time and money improving ones that are worth keeping.
For years Honda has had only 2 models for the masses. The Civic and the Accord. These cars were always rated highest in their category.
GM is better off making 5 decent cars than 15 crappy cars.
All GM cars remind me of rental cars. Plastic interiors, buzzy engines, and limp handling.
Ever seen a rental Civic or Accord? Of course not. These cars are too good. Travelers would miss out of the rental experience. The cheapest Civic has smooth controls and a racy inviting interior with a sweet sounding engine.
The Cobalt is bulky and the engine sounds like a weed wacker.
My last one for today, I could honestly sit on here all day posting.
You see, I am passionate about GM and the car industry as a whole. As many of the others here are as well.
But I get so frustrated. I know GM has committees and focus groups mad eup of Harvard and Yale grads analyzing results in order to tell you that SUVs are more important of cars. but where are the people to slap you back to common sense and say 30 SUVs is excessive. That is just available in the US. 22 4 doors cars to 30 SUVs. 2 door sedans? 7 other than the GTO and Vette. How many of those midsize 4 seat RWD coupes with attractive styling? n0ne.
Why not drop all the focus groups and analysts and talk to real people? Where is the sense in making 30 SUVs? None of them are spectacular save for the Hummer H1 and H2. Some people may restore H2s and H1s in 40-50 years, but no one will be restoring a Rendevous, an Equinox, a 97-x.
Not all cars need to be instant classics. But would it hurt if you guys tried to make them all Great cars?
I understand GM is a global manufacturer, and that you compete with other global manufacturers. But I am dismayed with the amount of outsourcing of jobs from the USA to China and Mexico for GM parts and assemblies. Should you get to the point that whole cars are produced abroad and shipped to the US for sale, I will never buy one. I would be more likely to buy a Toyota or Nissan, made in the US.
I would love to return to a GM vehicle, however I’m in the market for a modified station wagon. I’ve looked at the Chrysler Pacifica and the new Ford Freestyle, but I would prefer a GM with OnStar, etc. Any hope that there is a similar model coming out in 06 for Buick and/or Chevy? I drove GM’s for 12 years before switching to a VW, but I miss the advantages of GM.
Many thanks,
Simple idea. How much does it cost to retool for a new year model ? Design a mid-sized car and truck. Use the same engine and tranny. Make them all the same, as in all are automatic, with air,am/fm/cd, offer 6 colors only. Commit to making these same vehicles for 10 years -without changes – and pass the savings on to the consumer. Many of us just need transportation and aren’t interested in driving the lastest sytle. Money is the bottom line. And people who have large fleets,same parts for all vehicles. More after market products because people would know the car would be around for a while. Just an idea.
BShepherd
Will the new 3.9 liter 240HP v6 engine now in the 2006 chevy Impala be put in the Buick Lucerne within the next few years. I can’t believe GM put the outdated 3.8 liter engine (which is more than 12 years old) in the new 2006 Buick Lucerne.
This is a “thank you” to Mr. Lutz for giving the V platform another shot the in US. When living in Germany from 90-95 I was always impressed with Opel’s products, and wondered where the disconnect was over the Atlantic. Had GM offered those cars in the States I would not have been buying VWs over here. My last year there I rented an Omega for a trip to Italy and virtually ran it wide open on the Autobahn until reaching the Austrian border… I was so impressed with total sum of the car’s driving experience in all areas that I told myself if GM ever offered a derivative of it in the States I was buying it, no questions. Well, along came the Catera and at the time I could not afford it… but even if I could, as configured it did not offer enough value at its price point to warrant purchase. So I waited… and as soon as it was announced the GTO was being brought over as a captive import I began to read every review done on it and the Monaro. A month ago everything came together and now I’m the very proud and pleased owner of an 05 M6 GTO. FORGET the nay-sayers… at the current price point the car represents tremendous value. Why lackluster sales in the US? Don’t know… maybe a disconnect between where the marketing is targeted and who is actually buying it (I would never have considered an F-body were it still around, but the 3-series, TL and G35 were on my short list). If “global” cars that excel overall and offer value vs. the competition (like the GTO) are the result of this global product development initiative, then GM is headed in the right direction.
Mr. Lutz,
While I acknowledge the achievements that GM has made, as well as the progress in addressing quality issues, I am wondering why GM does not take things a step farther.
I happen to own a 2004 Saturn ION. While I like the car, I can’t help but notice how it is simply average in every way to it’s competition. Of course this is a huge stride for a small car from GM, as the Cavalier and Sunbird/Sunfire have been below average to various extents. Even the new Cobalt, which is barely different from my ION does not really show an area where GM could say “This is where our cars are superior”. GM has a unique opportunity in that reliability isn’t really an issue, as GM has almost caught up to Honda and Toyota. It’s time to let the world know, through advertising, and through a warranty that shows people how much GM believes in the long term reliability of their cars. Hyundai has made great strides in changing the perceptions people had of their cars simply by offering a 10/100k warranty. It immediatly proclaims that GM believes enough in the reliability of their own products that they know they won’t be seeing them very often for major warranty work.
The second thing is for GM cars to really excel in certain areas. Right now, GM cars are almost painfully average compared to their competition. Bold styling on performance models is one way. Moving from superchargers to turbos on those same models is another. A visually stunning car, such as the XLR makes people want to take a closer look, the closer lok makes them want to drive it, and the drive wil seal the deal and they’ll want to buy it. This shouldn’t be exclusive to the low volume high end cars. Chevy, Pontiac and Saturn should have those too.
One other thing that I would suggest: The Divisions might have an easier time regaining their identities if they were to operate more like subsidieries that share common parts than being seperate in name only. Pontiac should be responsible for all vehicles that bear the red arrowhead, Chevy for the vehicles wearing the bow tie and so on. It’s working for Cadillac, and i think it’ll work for the others as well. Please remember, before the decade of 1985 to 1995 Oldsmobile was in no danger of being squeezed out. You know what happened to them after 1995. The companies that make up GM must have their own identity.
I’m surprised by the amount of non-North American content in GM’s new products. Saab chassis, Chinese engines and transmissions from Eastern Europe are but a few examples.
Considering that GM is not alone in this business model (Ford is doing the same thing and Chrysler isn’t even an American company anymore), it’s really telling how far the US auto business has fallen.
With that said – Given that many people don’t share my concerns, GM’s new products are well positioned to leapfrog its many competitors.
I am just wondering if GM has the reliability stats on its own vehicles produced at different parts of the world. For example, GM cars produced in Europe compare to similar GM cars produced in China and to American GM cars. I have just read the news that GM sales in China grow by 35.2% which is awesome. My feeling is if GM can keep it up in the future. If the Chinese GM cars are just as reliable as the American GM cars, I can see the Japanese cars take over in the future. Otherwise if the Chinese GM cars can keep their customers happy and loyal, why not introduce them to the folks back home? (Assuming GM can get around the protectionist.) This is merely to stir up some comments. May be somebody can come up with something of value.
I have read a lot of grumbling about what GM is/was or will be. Probably most of it has validity and bears serious consideration. For the most part, given current direction and focus, GM will muddle through and survive. A large corporation trying to make a comeback has nothing on its side and the world against it which makes it difficult in the extreme to succeed. Ultimately shareholders will determine GM’s success and ultimately Bob Lutz will answer to them. Given his success with Cadillac, he should make the next few years interesting for GM’s competition at least.
Hopefully, he can make it interesting enough for me to continue my long history with GM products – I was ready to give up. And as previously noted, I think loyal GM customers feel something of an oddity, bearing criticism for our past decisions and feeling unrecognized by the General.
please make a small diesel pickup with a full length bed. you have them in every country except for canada and the usa.
Getting rid of existing reliable technology and trading it in for lemon engines (like the 3.4L V6) is the worst thing you could do.
People that have typically purchased GM vehicles in the past are looking for one thing: reliability.
The reason North American auto makers have fallen behind, is because they haven’t maintained quality and reliability. Not because some Cadillac models have 50 less horse power than Lexus, etc…
Audio: Exec tells of GM’s return to greatness
Listen to Bob Lutz, General Motors vice chairman of global product development, as he talks about the auto company’s “return to greatness” and how it can benefit workers. MUNDY TOWNSHIP — Bob Lutz wasn’t offering any promises about future General Mot…