Lutz retires from GM: Another icon leaves the auto industry

While some thought his swan song would have been performed when the first Chevy Volt was delivered sometime in 2010, it looks like septuagenarian and so-called GM “product czar” Robert Lutz is bowing about a little earlier than expected.

With GM focusing on how it will stay in business, Lutz’s bailiwick—product development—has slowed dramatically. His appearances at media events have dropped considerably compared to this time last year, where I joked that I spent more time with Lutz than my wife. But if anyone in the car biz deserves a break it’s Lutz, who turns 77 this Thursday.

After joining GM of Europe in 1963, he subsequently went to BMW and then Ford of Europe before becoming President of Chrysler in the mid-1980s where he would stay until 1998. When Lutz came on board to head up the General’s product development in September 2001, some thought he was the credible car guy the faceless corporation desperately needed.

If you read his clippings, Lutz single-handedly brought a “product first” mentality to a bureaucracy filled GM work force. He is personally credited for fostering into production such radical-for-GM cars as the Pontiac Solstice and 2004 GTO—a car developed in Australia that Lutz said convinced the automaker it could use a global product development strategy.

More recently, Lutz can also boast several competitive vehicles such as the Chevrolet Malibu, Buick Enclave and current Cadillac CTS to his credit. But like another polarizing auto exec, former BMW head pen Chris Bangle—who as of last week is leaving the auto industry in its entirety—not everything Lutz touched turned to gold.

While driving enthusiasts and those in the media nostalgic for the days when GM and horsepower ruled the roads thought Lutz was a godsend, one could argue he was a one trick pony, mired in the performance genre that gave him success when running Chrysler, pulling rabbits out of hats like Dodge Viper, Plymouth Prowler and Chrysler LH sedans. While at Ford Europe, Lutz is still known as the guy who pushed to import European Fords into North America under the ill-fated Merkur brand. Then there was the 2003 Cadillac Sixteen concept, a 1,000-hp 16-engine super luxury folly for Cadillac to establish itself as a rival of Bentley and Rolls Royce that never happened.

And although admired by fellow car guys, cars like the Solstice and new rear-drive Pontiac G8 have a “too little, too late” feel to them. And his global platform strategy is something almost every other automaker adopted decades ago.

Having said all that, and despite his outspoken skepticism towards global warming, Lutz recently seemed like a reformed man, pushing the yardsticks at GM to develop the Chevrolet Volt plug-in hybrid.

Anyway, with Lutz’s departure at such a critical time in GM’s history, will the automaker lose its “product first” mentality?

Or has the automaker turned the corner enough to carry on his legacy?

[Source: Automotive News]

BMW's Bangle says buh-bye

Rare genius? Or village idiot?

That seems to be the yet undefined legacy for BMW Group's suddenly former design head Chris Bangle, left, who is quitting "to pursue his own design-related endeavors beyond the auto industry," his previous employer announced today.

Adrian van Hooydonk, head of design for BMW brand, will succeed Bangle.

After initial stints at Opel and Fiat, Bangle became the first Yank chief of design of BMW in 1992, where he penned the Z9 Gran Turismo concept car, right. Then, after conservative redesigns of the 1999 BMW 3-Series and first BMW X5, Bangle dropped his first bomb on the design world with the 2001 7 Series, below left.

What followed—“flame surfacing,” “Bangle Butt”—they say, will be either Bangle’s legacy or ignominy.

As radical as his designs were to those who were use to a BMW look dating back over three decades, the man’s intellect and depth of thought has rarely been seen in the industry where automotive aesthetic decisions can be made by accountants, company scions—or the worst—customer focus groups.

At an AutoWeek design conference I attended in the early Naughties, Bangle opened the kimono and led the audience through an internal presentation that he ostensibly would have used to sell the BMW board of directors and executives on why a sharp turn left in design was needed to keep the business healthy and the copycats at bay.

As someone who once paid the bills selling right-brain creative concepts to left-brain engineering types, I always had a great deal of respect for Bangle as an uncompromisingly successful internal corporate salesman. Especially within a Teutonic company as tightly handcuffed to its own history as BMW.

To the beancounters at BMW, the proof in the pudding came in 2006 when BMW past Mercedes-Benz in worldwide luxury car sales.

Beauty is in the eye of the beholder. But some thought Bangle’s designs were like a sharp poke in the retina with a  sharp stick.

So the verdict still stands—Chris Bangle: Creative god? Or design hack?

[Source: Automotive News]

2008 L.A. Auto Show – Wrap-up

Los Angeles, California – The mood at this year's L.A. Show is as sombre as the brownish smog covering the L.A. basin this week.

Between every presentation, the quiet conversation among the media and industry types isn’t the usual  banter of “What’s the coolest car?” or “Can you believe they’ll ever actually make that thing?”

Nope.

Minds are all on The Three Amigos in Washington, D.C. this week, and the repercussions if one of the Detroit Three go down.

11:20 a.m. – Honda -  As a way to show that its FCX Clarity fuel cell vehicle isn’t a one-trick pony, the Japanese automaker showed the FC Sport three-seat sports car.

The fuel stacks that where mounted amidships in the Clarity have been pushed to the rear. And regardless of its quasi-Lamborghini Gallardo looks, trust me, this is a pure concept, and not the next NSX super car that’s due for Detroit in January.

11:50 a.m. - Ford – Like Nissan, Ford is offering both mean and green here in L.A.

In response to upstart American muscle cars from Dodge (Challenger) and The General (next spring’s Camaro), Ford has refreshed its five-year-old Mustang.

The highlights include a new, more luxurious interior that removes it from the Toys R Us bin, and larger wheels, retuned suspension and increased horsepower that Ford says was “developed from engineering experience on the race track and from special editions including the Mustang Bullitt.”

More important to Ford’s bottom-line is the new Fusion family sedan. Also updated inside and out for 2010, it gets a gas-electric hybrid option for the first time. And Ford expects its green Fusion Hybrid to get better fuel economy than the Toyota Camry Hybrid’s 5.7L/100 km. No really.

1: 55 p.m. Hyundai – The Korean automaker brought to L.A. its HED-5 i-Mode six-passenger crossover concept it first showed in Geneva last spring.

But this time, under its hood is the world debut of a new turbocharged gasoline 2.0-litre, four-cylinder engine with direct injection that Hyundai promises 15-20 per cent fuel economy increase compared with a standard 2.0L four-banger. Dubbed Theta Turbo GDI, expect the new engine in a Hyundai is some kind by 2010. And apparently, a production version of the crossover has been “green lighted.”

We had expected to see a Sonata Hybrid concept here on the west coast. But instead Hyundai just showed a mockup of its drivetrain, called Hybrid Blue Drive. It combines a 30 kW / 151 lb-ft motor/generator into a six-speed automatic transmission (kind of like the GM/BMW/Daimler two-mode system) and is expected in the next gen Sonata in 2010.

Er, that’s it for the important stuff. Sure. There were a trio of new convertibles from Infiniti, Bentley and Lamborghini. But more importantly, I’m off to drive the new electric Mini…

The General confirms North American micro car still a ways off

With automakers looking down the double barrels of high fuel prices and a constricted global economy, many are considering whether small vehicles previously reserved for Europe could also be marketed in North America.

Sales successes like the Mini Cooper, or Smart ForTwo have shown that a premium small car with an emphasis on fuel mileage and cool styling can be popular.

But not General Motors.

GM COO Fritz Henderson recently told Automotive News a North American micro car (such as its Chevrolet Beat, above) is not in the cards for now.

In a bad case of rationalization, Henderson thinks small-car buyers will be more than happy with compact cars the size of the Chevrolet Cobalt or subcompacts such as the Chevy Aveo.

So while bringing the Beat to our shores seems like a no-brainer, in reality, GM didn’t have the foresight to engineer the Beat to meet North American safety or crash standards.

We’ll have to wait until at least the next generation Beat, if ever.

Would you buy a Chevrolet Beat?

Or is GM right in thinking its just too small?

[Source: Automotive News]

PR warning: The General Ain't Gonna Take It Anymore

Let’s face it: If you make cars and trucks, and you happen to have your business situated in Detroit, you’re taking a lot of flack these days in the media.

So, now, one of the Shrinking Detroit Three—General Motors—is taking a page out of 1970s glam band Twisted Sister's lyric book saying, We're Not Gonna Take It, no, We Ain't Gonna Take It Anymore.

GM has created a new Web site dubbed GM Facts and Fiction. You’ll find there what GM cites as "myths" often said in the media. Plus, the automaker has launched a video series on its existing Fastlane blog called, The Case for GM.

At Facts and Fiction, car buyers are encouraged to submit rumours about GM they've heard or read for rebuttal. The site's "Overheard" section is littered with positive quotes about GM pulled from the reader comment areas of other websites such as the Wall Street Journal and Autoblog and (surprise! Surprise!) GM's own PR minions.

Fundamentally, GM is asking you to, “Please, give us break. We’re trying really, really hard…”

The introduction video, below, is by the religiously unbiased Christopher Barger, GM's director of global communications.

In the end, what can GM tell us that we don’t already know?

It’s verboten to talk about future product. They can't let us in on future technology or R&D. And they can’t really pre-announce any future cost cutting or financial plans.

Maybe the biggest problem I have with this whole adventure is—besides taking money away from much needed ad money—GM’s strategy breaks with the golden rule of PR: never repeat false or negative information.

This whole PR mess is an indication of how far the Detroit automakers have fallen since their dominance in the 1960s.

The fact that GM is in full defensive mode must have former '60s Ford scion, Henry “The Deuce” Ford II, spinning in his grave. He of the famous, “Never complain, never explain” mantra.

[Source: GM]

How long will Ford Canada’s latest grande frommage hang around?

That’s my first question after the automaker announced today that “veteran” Ford marketing executive, David Mondragon, will take over from former Ford Canada CEO and president, Barry Engle, left, who resigned last week after only being in Oakville all of eight months.

The fact that Mondragon will be the fifth Ford Canada CEO in less than four years isn’t really the big news here.

Our market, with its five distinct regions, is a great testing ground for young car execs being groomed for bigger ponds. The thinking in the auto industry is: If you can make it in Canada, you can make it anywhere.

No. It’s the fact that on the same day last week Engle bailed, Ford’s Australian boss, Bill Osborne, right, (ironically, Engle’s predecessor in Canada), also announced he was jumping ship.

Both Engle and Osborne took their respective posts earlier this year. And both officially said they were leaving Ford to greener pastures outside the auto industry.

Coincidence?

Like here in Canada, Ford’s Aussie operations are in a drastic downsizing phase, with 350 jobs recently being cut at Victorian plants.

Ford’s PR’s spin is that Engle is off to Pennsylvania, his home state, to join New Holland Agricultural Equipment SpA as president and CEO; while Ford Australia said Osborne will relocate to America to “fulfill a dream” as a “chief executive position for an independently-owned publicly listed company.”

How vague is that? At least it wasn’t the “spend more time with my family” cliché.

Whatever. The stop watch on Mondragon starts today…

[Source: Ford]

Update: Montrealer becomes Chrysler's new head pen

Just one day after being named Chrysler's future Veep of Design, Ralph Gilles gave a hint at the direction he wants to take the design of future rides.

Here are the highlights from a chat he had yesterday with the Automotive News crew:

• Everyone wants to go "organic" these days. And so does Gilles. He wants Chrysler products to lose the "edge" look (think Nitro and canned Magnum), pointing to concepts like the Dodge Zeo electric sports car, left,  and the Chrysler ecoVoyager he recently oversaw;

• One priority going forward will be to "get this monkey off our backs on interiors." Gilles believes the new 2009 Ram interior does just that;

• He also wants future Chrysler products to be "relevant anywhere in the world" so Chrysler's small design team stops redesigning vehicles for different markets.

Beyond the Sebring, what Chryslers do you think Gilles needs to fix sooner than later?

[Source: Automotive News]

Montrealer becomes Chrysler's new head pen

The passing of the design torch at Chrysler has finally happened: as of this Labour Day, former Montrealer Ralph Gilles will take over from current Veep of Design, Trevor Creed, who retires after coming over from Ford 23 years ago.

Credited with the groundbreaking 300C design in 2004, Gilles moved on to head up the Jeep, truck and advanced interior design at Chrysler.

In addition to this year's all-new Ram pickup and last year's new minivans, Gilles has also been the driving force behind making Chrysler's interiors seem less Toys R Us-like.

Hopefully the rarefied air in his new executive office doesn't stop Gilles from putting on the Nomex. Besides his Canadian roots and creative talents, Gilles is a racer at heart.

The highlight of his car barn is his Viper he often exercises  at club events (that's Gilles in the video below, breaking in a new SRT10 ACR.)

He's also a One Lap of America veteran and was one of my teammates in his second run at Targa Newfoundland in 2006, above. (He'll be back on the Rock again this year in a Challenger SRT8, along with your's truly in a Mitsubishi Ralliart—but that's another blog for another time.)

Maybe the best news here: if anyone can fix the Sebring's looks, it's Gilles...

[Source: Chrysler]

Rising material costs next Big Problem for automakers

If you thought ever-tightening emission regs, the U.S. credit crisis, the shift to emerging markets, or the the out-of-control-price of gas that's forcing North Americans into small cars in historic numbers are the only challenges that have global auto execs downing Advils like popcorn, think again.

According to General Motors and Nissan, the rising price of material costs—specifically steel—is what's giving those who run car companies headaches these days.

Higher material prices are the "single most important challenge facing the industry," Nissan grande frommage, Carlos Ghosn, told company shareholders in Yokohama today.

Expect automakers worldwide to raise vehicle prices by about 2 or 3 per cent in 2008 to offset the rising cost of raw materials, he said.

"All car manufacturers will increase prices. It's a question of time. How can you not increase prices if the price of raw materials goes up 100 per cent?"

On Monday, GM announced that will raise prices of 2009 U.S. vehicles an average of 3.5 per cent. That would add $1,050 to the pre-tax cost of a $30,000 car.

A dealer who was in on the conference call said some of the price increase is due to more product content, but rising material costs and the weak U.S. dollar is also to blame.

Canadian GM officials have not commented yet if we'll see similar increases here.

Ultimately, this could mean more cars like Hyundai and Kia's $9,995 specials or Volkswagen's City versions will enter the market. In other words: decontented cars to keep the advertised prices down where once-standard creature comfort features like power windows, A/C, keyless entry, and ICE become optional add-ons.

[Source: Automotive News]

Quality counted

It's that time of the year again where automakers hold their collective breath as the JD Powers that be drop the gavel on new car quality.

OK, they ain't the Oscars. But JD Power's U.S. Initial Quality Study has become THE gold standard for measuring new-vehicle quality at 90 days of ownership. (BTW: at day 91, you're on your own.)

For 2008, the Big JD saw "substantial" improvements by nearly 3/4 of the 36 ranked nameplates, with overall quality at 118 screw-ups/100 vehicles, down from 125 last year.

Although Porsche as a brand led the pack with only 87 problems (the industry average is 118; Jeep brought up the rear with 167), Hondas nailed more segment winners than any other maker with its Civic, CR-V and Fit.

Second to Porsche overall, Infiniti jumped up from 9th in 2007, and Audi scored the largest improvement, moving from 26th place to 10th.

You can click on the reports, left, to get all the nitty-gritty on segment winners and runner ups. But according to JDP's vice president of automotive research, David Sargent, most of the reported initial problems are related to some of the new-fangled, in-car entertainment.

“As consumer demand for new and more advanced wireless communication, navigation and audio technology continues to grow, manufacturers face challenges related to how well these systems are integrated into their vehicles,” said Sargent.

“In particular, issues with difficult-to-use audio and entertainment controls and voice command recognition failure are among the top ten problems most frequently reported by customers. Since hands-free communication for drivers will become a mandate in more and more areas throughout the United States, this will need to be an area of continued focus for automakers.”

Just another reason to shut-up and drive, eh?

[Source: JD Power]