GM's Lutz to retire, retain role with the company
http://www.detnews.com/apps/pbcs.dll/article?AID=/20090209/AUTO01/902090395/1148Bob Lutz is leaving his role as global product development chief at General Motors Corp., the company announced today.
Lutz, one of Detroit's most outspoken auto executives and a legendary figure credited with leading a design renaissance at GM, will become vice chairman and senior adviser to CEO Rick Wagoner, effective April 1. He will stay with the company through the end of 2009, he said.
Lutz, 76, has held senior positions at each of Detroit's Big Three automakers. He has overseen some of the industry's most daring designs in recent years, from the Dodge Viper to the Chevrolet Volt extended-range electric vehicle, scheduled to debut in November 2010, by which time Lutz will be gone.
Lutz said in an interview that was ready to leave.
"It's entirely at my request: this ain't that much fun anymore. It's been a great seven-and-a-half years, though, and I think we got a lot done. But now I want to relax and have some time with friends and family before I'm too old to get on a motorcycle," he said.
In a blog-posting on a GM Web site titled "You're Not Rid of Me Yet" Lutz emphasized he is confident in GM's future.
"I relinquish these responsibilities secure in the knowledge that the guiding philosophy of pursuit of absolute product excellence is now firmly embedded in the organization. That unquestionable fact made a very difficult decision much easier for me," Lutz wrote. "When I do retire at the end of this year, the Volt program will be well on its way to launch and I'll feel the same sense of pride and accomplishment that the entire Volt team will feel when the first ones are silently rolling off the assembly line."
The timing surprised one analyst, noting the Volt is Lutz's crowning achievement and that GM is entrenched in drafting a viability plan as part of the $13.4 billion federal loan package.
"It will raise questions over whether the schedule of the Volt is still on track," analyst Aaron Bragman of IHS Global Insight. "It still is a little shocking. The timing is a little unusual given the fact GM is in crisis mode."
His departure carries symbolic significance, sending a message that executive ranks will be changing as GM eliminates 31,000 union workers and salaried employees in the next three years, said David Cole, chairman of the Center for Automotive Research in Ann Arbor.
"If it's business as usual at the top and you're expecting people at the bottom to make major sacrifices, that's a tough sell," Cole said. "The symbolism is important."
Lutz, a former U.S. Marine Corps. figther pilot, is a larger-than-life personality reminiscent of the auto industry's daring infancy who brought a "car guy's" enthusiasm to the executive boardroom and let designers bring inspired creations to the marketplace, Bragman said.
"He's been the enabler," Bragman said.
GM announced that Thomas G. Stephens will take over for Lutz and report to president and chief operating officer Fritz Henderson. Stephens, 60, is currently executive vice president-global powertrain and global quality. In this new assignment, Stephens will maintain his responsibility for overseeing GM's global quality activity.
GM also will restructure its global powertrain group and create a leaner, more efficient organization, the company said in a prepared statement today.
"Bob Lutz was already a legendary automotive product guy when he rejoined GM in 2001," Wagoner said in a statement, "and he's added to that by leading the creation of a string of award-winning vehicles for GM during his time here. His 46 years of experience in the global automotive business have been invaluable to us. I've personally learned a great deal from Bob and have very much enjoyed the time we've worked together," Wagoner added. "I'm looking forward to Bob's continued contributions to GM for the remainder of 2009 -- and I know the impact of his efforts leading GM global product development will continue for years to come."
