Lutz Expounds on New No-Holds-Barred Book, Future Auto Technology

Lutz discredits the impact of short-time boss Ed Whitacre at GM, and says broomed CEO Rick Wagoner was intelligent but lacked “the killer instinct and sometimes ruthlessness a CEO must have.”

Jim Mateja, Correspondent

April 29, 2013

5 Min Read
Lutz Iacocca Eaton wonrsquot be terribly pleased with new book
Lutz: Iacocca, Eaton won’t be terribly pleased with new book.

CHICAGO – With “Icons and Idiots” as its title, there's little doubt that a no-holds-barred, pull-no-punches book by retired General Motors Vice Chairman Bob Lutz is about to become a must-read for those who follow, as well as lead, the auto industry – especially the individuals singled out as deserving of icon or idiot status.

“I don't expect (Lee) Iacocca (former Chrysler chairman and Ford president) or (Bob) Eaton (former Chrysler chairman) will be terribly pleased with the book,” Lutz says without elaborating in an interview here to promote his latest book that goes on sale in June.

Lutz also touts his newest automotive creation, the Destino VL, a super-high-performance sedan that started life as a Fisker Karma hybrid vehicle, but which is being converted into a 200-mph (322-km/h) fire-breather with a $180,000-$190,000 price tag.

The car is the product of his newest post-GM venture, VL Automotive. Together with industrialist Gilbert Villarreal, the two have restyled a Karma sedan and replaced its batteries and plug-in technology with a conventional gasoline-fed V-8 powertrain.

Lutz, appearing at a meet-and-greet event sponsored by the Barrington (IL) Concours d'Elegance held at Cooper Technica, an automotive restoration firm dealing in up-level machines, insists his book “isn't a hatchet job, but rather a commentary on leaders, their foibles and the odd behavior that made them difficult to work for.”

While promoting “Icons and Idiots,” Lutz is asked about another book, “American Turnaround” by Ed Whitacre, that doesn’t paint Lutz favorably and questions his role at GM. In it, Whitacre discusses his time as chairman and CEO, focusing on the aftermath of the GM bankruptcy and his success in helping the auto maker recover and get healthy again.

The former AT&T chairman and CEO was succeeded by Daniel Akerson, former Carlyle Group managing director, making for two successive outsiders running the largest domestic auto maker, while Lutz, who prided himself on being a “car guy,” retired.

Asked what, if anything, he learned about the auto business from Whitacre, Lutz points to an article he wrote for Forbes calling any suggestion Whitacre saved GM a “fable.”

Then he gets more pointed.

“(Whitacre's) success? A trained seal could have run the company once the federal government helped fix the balance sheet, based on the product we had coming from Chevy, Buick and Cadillac that were created long before he arrived by Rick Wagoner, Fritz Henderson and Bob Lutz,” he says.

While Iacocca, Eaton and other auto execs are featured in “Icons and Idiots,” Whitacre won't be, he says.

“I only worked for him for less than a year. He brought about a change at GM in that he cared less about details and execution than anyone I ever worked for, but he isn't in the book because he wasn't a leader in my life.”

Wagoner, the GM chairman removed by the Obama Admin. during the bankruptcy reorganization, is mentioned in the book.

“It's bittersweet. I have high praise for his integrity and intelligence, but what Rick lacked was the killer instinct and sometimes ruthlessness a CEO must have,” Lutz says. “But he was in keeping with the GM corporate attitude of don't be nasty, don't fire people and respect loyalty even if the person isn't performing.”

While GM has been led by two successive executives from outside the industry, Lutz says Mark Reuss, president of the auto maker’s North American operations and son of former GM executive Lloyd Reuss, could handle that role.

“Could he get that job? God, I hope so,” Lutz says. “I'd welcome the move. He's passionate about cars and about the car business and is a good businessman.”

Turning to the present and his Destino VL unveiled at January’s Detroit auto show in hopes of a production launch later this year, Lutz reveals the super-sedan is switching engines.

Original plans called the car to be powered by a 6.2L, 638-hp supercharged LS9 Corvette ZR1V-8, but it now looks like it will employ a 6.2L, 556-hp, supercharged V-8 from the Cadillac CTS-V instead.

“At some point we could add the Corvette ZR1 V-8, but we know the torque from a supercharged 566-hp Cadillac V-8 can be handled by an automatic transmission, and most people who will buy a $190,000 4-door extreme high-performance sedan don't want a manual transmission,” he says.

The company is looking to sell 200-500 of the cars annually.

“I expect to make a lot of sales to Fisker owners who say they want better performance and better styling. We're going to take it to an auto show in Dubai in November, because Dubai is where we expect many sales to come from.”

It is ironic that the so-called father of the plug-in electric Chevrolet Volt is removing the battery pack from the Karma to create a high-performance sports sedan. But Lutz still is a plug-in enthusiast.

“As I've said, by 2020-2025 maybe 10% of the market will be plug-ins,” he says. “Keep in mind that would be 10% of the world market, or about 7 million vehicles, and that makes plug-ins a big industry.

“What will make plug-ins popular is the ability to provide 400-mile (644-km) driving range so you can go anywhere, 30-minute recharge times so you can recharge while getting ready in the morning and a $25,000 to $35,000 price tag, so it's no different than the gas car.”

In other words, it's still a work in progress.

On other topics, Lutz is asked why Chinese cars haven’t cracked the U.S. market as some had forecast.

“I never believed Chinese cars were going to come into this country and be emissions- and safety-compliant, as well as high-quality, reliable cars,” he says. “The Chinese can't do it. Never will.”

Will driverless cars happen?

“Yes, though I probably won't be cruising the expressway in one, because it will be about 20 years from now," the 80-year-old says, before pausing and adding, “Well, maybe I will.

“Will there be accidents with driverless cars? Yes, sure, but a fraction of the accidents we have today. Because, unlike people, when electronics drive, they don't drink beer, smoke pot or text.”

And where are the promised hydrogen-powered cars?

“It's always been just five years away and only held back by the high cost of developing a fuel cell, the high cost of storing hydrogen and the high cost of setting up an infrastructure to distribute hydrogen for people to use in their cars,” Lutz says.

“By the time hydrogen is ready, it will no longer be relevant because we will have come up with batteries with longer range, shorter charge times, and lower cost.”

About the Author

Jim Mateja

Correspondent, WardsAuto

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