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

Edward Niedermeyer
by Edward Niedermeyer

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.

Edward Niedermeyer
Edward Niedermeyer

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  • John Horner John Horner on Dec 09, 2008

    Some years ago I remember reading that the Japanese government effectively injected a bunch of cash into their automakers by taking over the responsibility for worker pensions. Now I can't find any reference to that news on the web, but I remember it from the pre-web days.

  • ZoomZoom ZoomZoom on Dec 09, 2008

    Some of those quotes may be good enough to get the speaker committed in the 70's. But in this decade, they're just normal spin! Farrah! A picture can be worth a thousand words, and that one sums up the 70's so well; but only if you were there; heh. I remember all the fat boys in school proudly wore their Farrah T-Shirts. It was really weird to the point that I wondered if they even made a "medium".

  • ToolGuy This might be a good option for my spouse when it becomes available -- thought about reserving one but the $500 deposit is a little too serious. Oh sorry, that was the Volvo EX30, not the Mustang. Is Volvo part of Ford? Is the Mustang an EV? I'm so confused.
  • Mikey My late wife loved Mustangs ..We alway rented one while travelling . GM blood vetoed me purchasing one . 3 years after retirement bought an 08 rag top, followed by a 15 EB Hard top, In 18 i bought a low low mileage 05 GT rag with a stick.. The car had not been properly stored. That led to rodent issues !! Electrical nightmare. Lots of bucks !! The stick wasn't kind to my aging knees.. The 05 went to a long term dedicated Mustang guy. He loves it .. Today my garage tenant is a sweet 19 Camaro RS rag 6yl Auto. I just might take it out of hibernation this weekend. The Mustang will always hold a place in my heart.. Kudos to Ford for keeping it alive . I refuse to refer to the fake one by that storied name .
  • Ajla On the Mach-E, I still don't like it but my understanding is that it helps allow Ford to continue offering a V8 in the Mustang and F-150. Considering Dodge and Ram jumped off a cliff into 6-cylinder land there's probably some credibility to that story.
  • Ajla If I was Ford I would just troll Stellantis at all times.
  • Ronin It's one thing to stay tried and true to loyal past customers; you'll ensure a stream of revenue from your installed base- maybe every several years or so.It's another to attract net-new customers, who are dazzled by so many other attractive offerings that have more cargo capacity than that high-floored 4-Runner bed, and are not so scrunched in scrunchy front seats.Like with the FJ Cruiser: don't bother to update it, thereby saving money while explaining customers like it that way, all the way into oblivion. Not recognizing some customers like to actually have right rear visibility in their SUVs.
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