Bailout Watch 271: Lutz: GM Will Ask For More Money.

With Bob Lutz pounding the media pavement for his credibility-challenged boss, it was only a matter of time before someone really hit the Maximum-quote jackpot. Chalk up a doozy for CNN, who snagged Lutz for its “American Morning” show, and got an interview which proves why Lutz was being kept away from bailout talk in the first place. The honesty flowed like single-malt in a boardroom from the very first question. When asked what GM would do with the $15b to ensure its survival, Lutz hedges, answering “this is simply a bridge loan which will get us into the next administration, where we hope we can do something more fundamental. Because the main problem is the lack of liquidity and the lack of revenue flowing in as we’re facing absolutely the lowest, lowest car market in history, and it’s not just the domestics.” AM anchor John Roberts, smelling blood in the water, presses Lutz. “You don’t see Toyota and Honda coming to the government for a handout. But based on what you said there — that this is just the beginning — you’re going to need more money next year?” To which Lutz replies “I think that’s a reasonable assumption.” Reasonable, eh?

When asked how much more money GM would request, Lutz came up just short of saying “as much as we can wrangle.” “At this point, you know, that’s going to have to be discussed with Congress. We’ll have to see. But this is definitely a bridge loan that will solve the immediate liquidity problem,” he said. “I don’t think anybody in Congress or the president-elect assumes that this is all the money that is going to be required to bridge this liquidity crisis that the American automobile industry is facing, and, again, it all depends on how fast we have an economic recovery. Again, let me restate this. At 10.8 or 10.5 million total market, we do not have a viable automobile industry in this country for anybody.”

The final questions of the interview led to a comedic riff on the possibility of job overlap between Lutz, the original Car Czar, and a presidentially-appointed Car Czar. When asked who he would like to see as the new Czar, Lutz was somewhat confused. “Wait a minute. We don’t know if it will be a czar or overseer. I doubt whether this person would dictate the product policy,” was the initial reaction. After being reassured that yes, the Car Czar could have a say on product mix, Lutz wasn’t any less bewildered. “I wouldn’t even — other than myself? Unfortunately I’m not available because I’m still gainfully employed.” For the moment, Bob. For the moment.