GM: Lutz watch

It does appear to those of us looking in from outside that he is somewhat out of touch. Perhaps it's time for him to retire and let some new blood in?

 

When a company is short-sighted from a financial perspective and only looks at quarter to quarter profitability, then investing in any new product where the payoff is longer than one year is always a losing proposition.

Unfortunately, too many American companies look a business this way. Detroit is committing financial suicide.

Keith

 

Bob Lutz is to the autoworld what Terrell Owens is to the NFL

 

The irony of the loudest voice endorsing Volt being the biggest hold up for hybrid growth is a sad reality. It's too bad he didn't retire like he said he would.

That green "halo" he seeks isn't reality. Image only goes so far. It always boils down to selling vehicles. Low profit margins are something he strongly dislikes, high-volume is too. Abundant affordable vehicles aren't sexy or flashy. They're practical for consumer & automaker. He doesn't want that. Efforts are doomed to niche as a result.
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Don't they say that cultures often go through major changes every 50yrs or so? Not solely because of a major shift of attitude but because those who are in control of the country die and take their unchanging opinions with them? lol

 

I think GM will have to die before the culture can change. It isn't a resource problem, it isn't a technology problem, it isn't a personnel problem, it's a management and culture problem.

 

Bob what percent of the market do you think hybrids will account for by the end of this year? When will hybrids reach 5%? How about 10%? What percent of the US market were they in 2009? Maybe Lutz is just too honest?

2009 US Prius Sales--139,682--1.34% of the US Market
2009 US Insight Sales--20,572--0.20% of the US Market
I know some Camry hybrids were sold, honda hybrids, ford Hybrids and GM hybrid, but hopefully you get my point. do you think it was even 2% of the US market?

2009 US Light Vehicle Sales--10,431,718

 

If you assume $2.32/gallon, the hybrid/BEV march will be stifled. What happened when we saw 3-5/gallon? What do you think will happen at $10?

 

We won't care about the price of gas long before it would get even close to $10/gallon. A simple understanding of the laws of supply and demand, what happened to the world economy when oil was $150/barrel? The economy plunged and reduced demand. What kind of shock do you have in mind? Peak oil? How long have we been told about that? I am not saying that over time there won't be upward pressure on the price of oil, but I think long before the price would even get to $5/ gallon consistently gasoline will have been replaced as the main fuel in the economy.

 

With what, pray tell?

 

I am not sure, but do you really think gasoline will get to $10/gallon and there won't be an alternative? You don't understand human nature.

 

Which economy? Here's a chart of global gas prices - many people have been paying $5 or more for quite some time. As far as I know, most of their countries still rely pretty heavily on petroleum.

 

Different economic model, those countries choose to tax gasoline very heavily. do you think they pay more per barrel? the tax in the Netherlands is more than $4.00/gallon. What do you think happens to global economy if gas appraoches $5.00/gallon again? Yes and when the economy drops what happens to the demand for gas? And then what happens to the price?

 

I guess I don't.

I think there will be a range of alternatives; that among these will be hybrids, bevs, cng, mass transit, bicycles, motorcycles, and shoe leather.

What is GM offering me? The Volt will fit some of us, if it is ever made in volume. What else you got? We've already toyed with $5 gas, killed our economy, and what change ensued? Well, Ford seems to get it. Ford and Toyota can put their hybrid system in much of their lines at reasonable cost. Honda recently decided to reinvent their hybrid, and I believe they will make that happen.

Leaf looks very promising for another segment of us.

Don't see enough out of GM or Chrysler at present.

My point is the alternatives don't come from a mountain spring. We need to make progress before the next crisis. Today's 50 mpg is an improvement. 75 is coming in 2012. 100 will come. BEV's will gradually supplant ICE, offering >100 mpge.

 

So your vision is a policy of encouraging boom and bust? Better to raise our taxes to finance the military that ensures the flow of oil and to discourage consumption, thus giving a longer more stable transition to the magical non-gas future.

 

And the US chooses to heavily subside its gasoline prices, hiding the true costs. Seems to me that's not working out so well. The US auto industry still needs bailouts, and refuses to build efficient cars.

 

the true cost of gas? Do you mean military costs? What other cost is there?

US does not build efficient cars? How about they don't build hybrids which account for less than 2% of US sales. Every other market segment a US company either is leading or tied for the lead when it comes to fuel efficiency.

Did yo umean Toyota = fuel efficiency becuase they sell 10,000 Prius a month. I think the toyota=efficiency will follow the Toyota= reliability right out the door.

 

So raising taxes will discourage boom and bust? How about higher taxes will encourage bust?

I took note of all the economic powerhouses at the top of the high gas price list. I also noted that China fails to show up, a place where the price of gas is truly subsidized. how is there economy doing?

 

Wow. You've never heard the term 'environmental cost'?