Bob Lutz to Silicon Valley: 'You're Not That Smart'

Aaron Cole
by Aaron Cole

In wonderful Bob Lutz fashion, the former General Motors head told entrepreneurs in Silicon Valley that making cars is hard.

“I think, like so many Silicon Valley techies, that they believe they are smarter than the world’s automobile business, and that they will do it better,” Lutz told The Associated Press. “No way.”

His argument, in a Readers Digest version: Cars are more dangerous than Walkmen and when you make things that can explode it costs money so beat it, nerds.

Tech giant Apple and Google have already waded into the automaking waters (although we’re not entirely sure how much Apple has yet) within the last five years.

Google’s approach will be to sell its technology to automakers, and probably not build the cars themselves, according to the report.

“We have enormous respect for the expertise of the automotive industry and how big and complex a job it is to manufacture a vehicle,” spokeswoman Courtney Hohne told the AP. “We’ll partner with many different companies to bring this technology into the world safely.”

Lutz told Fox Business last month that margins in the automaking business are much lower:

When it comes to actually making cars there is no reason to assume that Apple, with no experience, will suddenly do a better job than General Motors, Ford, Volkswagen, Toyota, or Hyundai. So I think this is going to be a gigantic money pit …

By the way the electric car market is still miniscule. That just doesn’t make sense.

According to the report, Apple CEO Tim Cook said at an event organized by the Wall Street Journal that the computer giant’s near-term plan for cars were infotainment devices meant to mimic its iPhones.

“What we really want, hopefully in the short term, is we’d like people as they enter their car to be able to have an iPhone experience in their car,” Cook said, according to the AP.


Aaron Cole
Aaron Cole

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  • JD321 JD321 on Oct 28, 2015

    They're smart enough...they just aren't "adult" enough. Musk is a tax-taker parasite and not a competent businessman.

  • Mcs Mcs on Oct 28, 2015

    Bob Lutz, the auto industry version of Rex Ryan.

  • Dwford What has the Stellantis merger done for the US market? Nothing. All we've gotten is the zero effort badge job Dodge Hornet, and the final death of the remaining passenger cars. I had expected we'd get Dodge and Chrysler versions of the Peugeots by now, especially since Peugeot was planning on returning to the US, so they must have been doing some engineering for it
  • Analoggrotto Mercury Milan
  • EBFlex I come across stories every single day about how bad the CyberPuke is. It truly is amazing how bad Tesla screwed it up.You know that a vehicle that can make the fake lightning seem decent is a horrible vehicle. Ford designed one of the worst "trucks" in history and then Tesla came along and said "hold my IPA".
  • Cprescott I have watched a series of teardown videos by Munro and Associates (sycophants to Tesla) and cannot believe the hoodwinking that was done with this POS. There was no way it was ever going to sell the golf cart with a bed for the price they said. I cannot believe all of the space those motors take up - so huge and expensive. And the battery pack is the size of Rhode Island!
  • Rick T. That's the way the (Milano) cookie crumbles.
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