Lutz: Pich's Brutal "Reign of Terror" Likely Cause of Diesel Scandal
Ferdinand Piëch, the man who ruled Volkswagen like the king of a Teutonic fiefdom, was likely the cause of the diesel scandal that’s erased billions of dollars of value from Volkswagen as it looks down the barrel of a gun loaded with further billions of dollars worth of recall work, fines and law suits.
Or, at least, that’s the claim made by Bob Lutz.
Former auto industry executive Lutz called Piëch’s leadership style “a reign of terror” before saying “The guy was absolutely brutal,” in his latest piece for Road & Track.
Tell us what you really think, Bob.
Lutz alludes to a dinner in the ’90s where he and Piëch sat beside each other:
I told him, “I’d like to congratulate you on the new Golf. First of all, it’s a nice-looking car, but God, those body fits!”
“Ah, you like those?”
“Yeah. I wish we could get close to that at Chrysler.”
“I’ll give you the recipe. I called all the body engineers, stamping people, manufacturing, and executives into my conference room. And I said, ‘I am tired of all these lousy body fits. You have six weeks to achieve world-class body fits. I have all your names. If we do not have good body fits in six weeks, I will replace all of you. Thank you for your time today.’ ”
“That’s how you did it?”
“Yes. And it worked.”
It’s this management style that Lutz blames for Volkswagen’s current state. Why? Instead of me rewriting it, check out Road & Track instead.
More by Mark Stevenson
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When I first read this article, I got about halfway through and before checking the author because it sounded like something Lutz would say. A jovial comment made by someone at a dinner party doesn't necessarily represent how he ran the company, or the kind of culture that was there. Maybe this is the case, but maybe it isn't but as it stands, it's just an opinion piece. I see some B&B draw parallels to Steve Jobs. Jobs's uncompromising management style was partly to create an environment where there was no incentive for imperfection. Even their employee badges are impeccable. McLaren is much the same way, from the tiles on the factory floor, to how the needle in the tach projects a dot on the inside bezel of the gauge. Good leaders will continuously push boundaries that their subordinates didn't know could be pushed, and it does take a firm hand. I can hear you reaching for your keyboard to point out botched product launches and all that stuff, like Apple Maps, or the MP4-12C's door handles. No company is perfect. There are compromises that are made, mistakes that don't appear manifest until later, but what it comes down to is: Hardware design is difficult, manufacturing and logistics even more so. There will be compromises made during all phases, but the true test is how a company chooses what to compromise on, and how they handle the consequences. In the case of the diesel fiasco, VW chose this one poorly.
Type "Jose Ignacio Lopez" into your favorite search engine. Not a surprising outcome.
I see popup window on my PC which hangs at the bottom of page and is honestly annoying. It says "Massive Volkswagen Sale Going On! Get Our Lowest Volkswagen Price Now". Do you know how to get rid of it? Thank you. I tired of all these annoying ads popping up on TTAC.
On one hand, you have a very demanding docktor professor. On the other, there is a situation that could've been fixed in 6 weeks, but has festered until a threat on careers were made by someone with real teeth. So...I guess what I'm saying is that if you were to play the devil's advocate, the blame is not entirely on the old man with no teeth.