By Robert Farago
January 16, 2008 -
Perhaps I should explain why I gave GM Car Czar Bob Lutz his nickname "Maximum Bob." Nah. Why bother? TTAC's archives are suffused with the demented ramblings, patently absurd pronouncements, wildly inaccurate analysis and stupefying statements of GM's resident bodacious braggadocio. He really is God's gift to TTAC. We [also] thank GM CEO Rick Wagoner for appreciating his own true nature as a Harvard-trained beancounter; a realization that led him to place the entire global product line of the artist once known as the world's largest automaker into the hands of an ill-informed, ADD-addled executive. An automobile executive who couldn't name all VW's brands. But I digress. Automotive News [sub] reports that Lutz is tired of fighting. The Car Czar wants to know why can't we all just drive E85? "There's no reason the automotive industry can't go to 100 percent E85 vehicles, and the world we love doesn't have to change." You see, the thing is, the automotive world already has changed. A funny-looking car called the Prius has outsold the once mighty Ford Explorer– and that's just for starters. Shhhh. Don't tell Bob. TTAC wouldn't be half as interesting without him. Unfortunately (or fortunately if you're a GM employee, dealer, customer or stockholder), it's only a matter of time before Maximum Bob unfurls his bankruptcy-proof golden parachute and floats off into a gilded retirement home (or three), proclaiming himself the architect of GM's product renaissance. He will be missed, but in a different sort of way by a different kind of people. If you know what I mean.
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POWERED
January 16th, 2008 at 4:11 pm
That’s absolutely correct. It wouldn’t take much effort to make all gasoline powered new cars capable of running E85. And, after doing so, the world wouldn’t change a bit, since everyone would keep using gasoline.
January 16th, 2008 at 4:17 pm
Cost of GM’s Nano -
MSRP - $2500
Freight - $1200
PDI - $700
VIN Etching - $400
Admin fee - $200
Undercoating - $1000
Rust Protection - $1000
Fabric Protection - $500
There’s probably more profit there than with the Astra.
January 16th, 2008 at 4:20 pm
So maxi-Bob wants us all to drive the only types of alternative vehicle GM offers, that just so happens to cost more per mile than a H2.
The other nut has dropped for GM, that’s for sure
January 16th, 2008 at 4:39 pm
I kinda feel bad for him. Seriously, it sounds like he’s a little senile.
Seems like it might be better to give him some honorary position and put someone less inept in that role. But then who? GM’s hiring practices for leadership roles don’t appear to have a competence requirement.
Did I just type that out loud?
January 16th, 2008 at 5:30 pm
I’ve had enough of the Lutz bashing that TTAC seems to enjoy. As a former Marine officer, president of Chrysler, and CEO of Excide how can anyone question his professional competence or leadership ability?
So maybe at the age of seventy-two his mental capacity has diminished slightly. How many TTAC readers can duplicate a fraction of his forty year automotive industry experience?
Bob Lutz could have retired thirty years ago but it’s obvious that his love for the industry is the only reason he is currently working. What’s not to like there?
January 16th, 2008 at 5:32 pm
An automobile executive who couldn’t name all VW’s brands.
Who can? It’s trying to make GM look lean!
Audi, VW, Seat, Skoda, Bentley, Lamborghini. Did I forget any? Porsche maybe (or rather the other way round)
January 16th, 2008 at 5:34 pm
jkross22 wrote:
Seems like it might be better to give him some honorary position and put someone less inept in that role.
I suspect that his role is already “honorary”. They probably keep him around more as a consultant than an executive. Besides, how dull would it be for automotive journalists without him?
January 16th, 2008 at 5:55 pm
I’ve had enough of the Lutz bashing that TTAC seems to enjoy. As a former Marine officer, president of Chrysler, and CEO of Excide how can anyone question his professional competence or leadership ability?
It's not bashing. It's reporting– with style!
Anyway, while I generally hold military personnel in high regard, I reserve the right to question the wisdom of anyone in a position of power– not being in the military myself (thanks for protecting my freedom of speech BTW). As far as the applicability of Maximum Bob's Marine training to his current job, I suggest you have a look at this Death Watch.
And if you're seriously suggesting that only the cream rises to the top in the Detroit auto biz, a corporate culture famous for its upwards failing execs, well… I don't think I can disabuse anyone of such a naive notion.
January 16th, 2008 at 6:00 pm
MB is living back in Eisenhower America when the federal government built the interstates. Now that Bush has signed an agreement with Brazil and used the word “switchgrass” several times on TV it probably has validated someone making a business case in GM, and a compelling one at that.
I think the market will react adversely to E85 however - Americans seem to want to plug their car into a socket. I’m thinking about it.
January 16th, 2008 at 10:24 pm
I think the market will react adversely to E85 however - Americans seem to want to plug their car into a socket. I’m thinking about it.
Which will lead to another great folly when millions of cars are sapping the power grid dry.
The U.S. relies overwhelmingly on coal-fired power plants.
Something still doesn’t compute.
January 17th, 2008 at 12:02 am
Cripes, Farago! The sound system does not make the car! If that’s all the RL has to recommend it, (expletive) it!
Maybe you guys are right, and CR is right about Acura. I do like the TL, and the TSX is a competent car, but I’m not about to trade my Accord for one. On the other hand, if they still made the Integer…
January 17th, 2008 at 12:32 am
86er: “Something still doesn’t compute.”
Electric power demand is fairly peaky. The grid is underutilized late at night.
Electric companies will almost certainly offer off-peak rates to charge your vehicle. It requires new metering, which costs a bit, which is why they don’t routinely offer it. However, they’ll undoubtedly find it economical to do so in the future. They’ll be able to boost sales with negligible addiional capital investment. Capital expense is the thing they avoid whenever possible.
I used to work for a utility and this is one of the things that was commonly discussed. Off-peak or interruptible service rates are available to some clients (mostly commercial users) today.
January 17th, 2008 at 8:24 am
“Audi, VW, Seat, Skoda, Bentley, Lamborghini. Did I forget any? Porsche maybe (or rather the other way round)”
Bugatti?
January 17th, 2008 at 10:00 am
speedbrakes:
Exide had to file for chapter 11 bankruptcy just after Lutz left for GM. Yeah, that’s right, the dreaded B word comes up again.
I’m not clear of the details other than that Lutz had been at Exide for a few years after he left Chrysler. Does anyone know more?
January 17th, 2008 at 10:27 am
This out of left field - Did anyone manage to catch Rush Limbaugh on Tuesday? Completely out of his depth he defended Maximum Bob with “…GM doesn’t build cars anyone wants because it’s the gummint’s fault (CAFE standards)”. Whoa.
I’m a conservative (Buckley-ite) and rail against gummint intervention at the drop of a hat, but I don’t believe that the 2.5 aren’t building cars people want for any reason than they are the ‘B’ team. Toyota and Honda seem to have wrapped their brains around this CAFE thing, even managing to import/build within the U.S.
http://www.rushlimbaugh.com/home/daily/site_011608/content/01125109.guest.html
UPDATE: In looking through the transcript there is the very obvious lack of comment in which Rush pointedly states that he knows and has talked at length with M-Bob about this. An audio transcript might actually bring the whole thing to light?
January 17th, 2008 at 11:42 am
Kixstart: Electric power demand is fairly peaky. The grid is underutilized late at night. Electric companies will almost certainly offer off-peak rates to charge your vehicle. It requires new metering, which costs a bit, which is why they don’t routinely offer it. However, they’ll undoubtedly find it economical to do so in the future. They’ll be able to boost sales with negligible addiional capital investment. Capital expense is the thing they avoid whenever possible.
I used to work for a utility and this is one of the things that was commonly discussed. Off-peak or interruptible service rates are available to some clients (mostly commercial users) today.
When you say “negligible additional capital investment” do you mean that there exists enough power generative capacity in the U.S. (especially in areas such as California which would be an early adopter of plug-in hybrids) to handle this, even be as it may during off-peak hours?
Speaking now to the newsblog, as my previous post alluded to, I don’t know what Bob is smoking as per E85, but it is without question that he gave GM a big giant kick in the ass upon his arrival. We can debate until the end of time his efficacy and competence in a number of areas, but I do believe he moved the ball forward and has largely accomplished what the Board set out for him to do upon his appointment, which was use the powers of his office to strong-arm the byzantine operational structure and put out compelling products in spite of the status quo at GM, not because of it.
If we all believe that Product is King, then let us compare the GM of 2001 to the GM of 2008 on that count. I think the real beef with Lutz now is that like with many turnaround artists, he has now overstayed his mandate and should turn the reins over to a new generation.
January 17th, 2008 at 11:54 am
E85 as the fuel that generates your gasoline motor + lithium ion batteries can equal zero dependence on foreign oil. E85 need not come from corn, but can be produced more effectively with other organic products. The corn lobby in the U.S. is pretty powerful, but it will have to accede to a worldwide ethanol product that will be cheaper.
Lutz is not senile, nor is he out of touch.
E85 is a nascent thing in the U.S., but worldwide experimentation will result in more efficiency. People will figure out very quickly the most efficient and least environmental hazardous mode of production. So what if your motor powering your batteries gets 20% less economy than oil, if your Volt is getting 50 mpg.
January 17th, 2008 at 12:43 pm
Well I’m ready for a plug-in since my electricity is 100% wind powered, and cheaper than the natural gas electricity I was getting before I switched. However I’m leaning towards thinking a mandate for E-85 fitment (aside from diesels) might not be a bad idea. Do it, eliminate the subsidies, eliminate the tariffs & restrictions on importing sugar-ethanol from Latin America, and see how the market responds with cellulosic ethanol, methanol (which an E85 car could use) and the new sugar industry for all our friends to the south.
Of course I know the government won’t eliminate the subsidies, but my main question is what’s the real cost of fitting cars for ethanol? It’s more than ethanol proponents claim, but not sure how much for real
January 21st, 2008 at 7:01 pm
Just thought of something. Is it a coincidence that Chevy’s top of the line models are commonly known as the L[U]TZ model?