It seems like a fairly good bet that the Big Three will land government loans somewhere in the neighborhood of $15 to $17 billion, but the terms destined to be attached to those loans remain anyone’s guess. Some industry analysts are predicting Congress will require General Motors to remove Rick Wagoner from his position as company CEO in order to secure funding, but GM vice-chairman Bob Lutz warns that move would be ill-advised.
In an interview with CNBC, Lutz contested the idea that GM needs a clean slate when it comes to management, and likened Wagoner to a “sacrificial lamb”.
“I think that’s like blaming the mayor of a city that has been hit by an earthquake,” Lutz said of the possible firing of Wagoner over GM’s current financial situation.
GM’s financial situation has been deteriorating since 2005 –losing $70 billion in the last three years — but has been greatly accelerated by the recent global economic downturn. Wagoner took over as GM CEO in 2000, but didn’t seize full control of the automaker’s North American car division since 2005. Although GM has lost $70 billion in that span, Wagoner has been able to reduce GM’s operating costs by $20 billion.
“He is without doubt the best CEO I’ve ever worked for,” Lutz said in closing.



12/08, 5:48 PM
posted by:
bmw 740i
take all of them out and put in some fresh blood. no wonder why they dont sell cars, they have dinosaurs running GM… innovation is critical, cant have anymore rebadging
12/08, 5:55 PM
posted by:
AnonymousCoward
“He is without doubt the best CEO I’ve ever worked for,” Lutz said in closing.
What has that to do with it?
12/08, 5:56 PM
posted by:
jayjc08
bmw 740i- Obviously, if you had read the article and knew a little bit about the people running GM, you wouldn’t be saying that…
The company that I see most desperately needing new management would either go to Ford NA or Chrysler.
12/08, 6:05 PM
posted by:
Lariat Luxury Locomotive Liner No.3
They should fire Lutz before Wagoner.
12/08, 6:06 PM
posted by:
johnnycanuck
I’m with jayjc08. Wagoner and Lutz are the right guys to get GM through this. How about they insist on firing Gettelfinger, that’s the operation that desperately needs new blood.
12/08, 6:20 PM
posted by:
miket
Im with LLLno3.
12/08, 6:26 PM
posted by:
rds130
I wouldn’t shed a tear if they fired them both. But Wagoner really needs to go. And Gettlefinger.
12/08, 6:31 PM
posted by:
DB9
I watched the interview at the office. Bob did a good job,handled himself with aplomb! When Joe Kernan asked Bob if management should be replaced – yes he defended Rick and the current admin as indicated above but there was more – He said LOOK if they can find someone better, as in management, then by all means hire them. It was a good interview. They even asked him if he thought it was fare that The Financial crowd got bailed out to the extent that they did while not being HUMILIATED in public.
http://www.cnbc.com/id/15840232?video=955011420&play=1
DB9
LLN your synopsis is not exactly fare
12/08, 6:33 PM
posted by:
Borat
They all deserve place in soup kitchen line.
12/08, 7:27 PM
posted by:
The Stig
If Bob was female and 50+ years younger we’d dress him up and call him a cheerleader.
12/08, 7:39 PM
posted by:
FSVT_ROCK
FIRED BOTH GUYS. THEY ARE NOT WORTH ANYTHING, THEY JUST KEEP BURNNING COMPANY MONEY.
Here is the list I think what GM should done and brand they should keep and kill it.
Keeper
Pontiac – Need some new high performance toy, and keep it as performance brand.
Chevy – Need to drop at less 3 SUV and some truck too.
Cadillac – They have done a great job, and now just try to keep up with the gas mileage.
Holden (HSV) – The best Australian made, either you hate it or you love it.
Opel – Grow up too fast, keep it real.
Saab – Saab oranginal is a performance brand not a laxury brand, need some improvement.
Vauxhall – Just like Pontiac, keep it as performance and it will do good.
Brand need to be drop from GM:
DAEWOOD – KILL IT, worsest Korean car in the world.
SATURN – KILL IT, it wasn’t even worth to creat this company at first place.
GMC – I will say KILL IT, cause you already have too many trucks and SUV in Chevy itself already.
HUMMER – KILL IT, it is not even worth anything to bring them back at first place.
BUICK – Too old, not all old people like to drive old style car. KILL IT.
12/08, 7:45 PM
posted by:
zeeck
hmm, “You wouldn’t blame the mayor of a town that was in an earthquake”
Well, if that town is in an earthquake-prone area and instead of investing in infrastructure to make the buildings withstand earthquakes the mayor decided to build a new strip mall in the projects, wouldn’t he still be mainly at fault for the destruction of buildings that would otherwise be standing?
sounds like a good comparison to me…
12/08, 7:46 PM
posted by:
Payton Byrd
You people are nuts. Why even think of firing Mullaly at Ford. He’s the reason that Ford doesn’t need loans unless one of the other two fail. Learn the facts before spouting fear-mongering spittle.
12/08, 8:26 PM
posted by:
DrFill
Not having a dog in this fight…….
I say keep Wagoner AND Putz!
Why?
Compare GM now to GM in 2000, and this has been a product renaissance like they’ve never seen in their history
Many, many, many GOOD vehicles.
Family sedans that are actually worth test driving!
SUVs and pick-ups that don’t fold up like a tin can in crash test
Compacts that are actually competitive in economy (not much else)
Vettes that don’t get smoked by Supras anymore, but are smoking Ferraris!
No more pathetic attempts at minivans, replaced with attractive, functional, efficient crossovers
Pontiac actually means performace again
And the Camaro is the death of the Crustang
Dare I say, if you pared them down to a reasonable vehicle count, they have a better lineup than Toyota does!
Over the last 8 years, GM has come a LONG way in product
Somebody actually lit a fire under their a$$!
I’ll give Wagoner and Lutz credit for that
That said, Volt will not save GM
They are no Toyota in the management department
And they have lost control of the franchises and the unions
Of the Broke 3, GM is the only one worth a damn at this point
I wouldn’t buy a #2 pencil at Ford
Chrysler has no management at all
They can’t wait to get bought and sold again
GMs problem is the same as the others domestics
People are tired of their empty promises
They are ALL the boy who cried wolf.
You can give them all $50Billion.
It ain’t worth the paper it’s printed on
Money won’t solve this problem!
Nobody likes GM
They may actually be hated at this point nationwide
I hate Ford much more
Chrysler isn’t worth hating
Their names are mudd
How much will it cost to fix that?
The people you screwed aren’t coming back
That’s most of the market, boys
Good luck
You’ll need it
DrFill
12/08, 8:34 PM
posted by:
DrFill
One more ting!
Toyota and Honda are names, brands, that you CAN’T TEAR DOWN!
You look like a stupid a$$ when you rip them
Why?
Because all these companies do is protect their brand image
They are quality
They aren’t sexier or glamourous
They do EVERYTHING you need, and some of the things you want
And you can bet your life on them
That’s their value
The Broke 3 sold their names out for a quick sale, a rebate, and a little “planned obsolescence”
They sabotaged themselves, and that’s what they’re talking about in that Automotive News statement today
WE sold you out, ourselves out, and boy are we sorry!
Damn right you’re sorry!
Simple and sorry as you’ll ever be
They can make cars out of diamonds now
It wouldn’t shine
The sky would turn grey
Learn from Trump, Toyota/Lexus, Apple, Sony
Don’t sell your brand
Build it
Or you’ll be sorry
DrFill
12/08, 8:54 PM
posted by:
Lariat Luxury Locomotive Liner No.3
Every time I look at this particular photograph of Lutz I think of Alfred E. Neuman, only with grey hair.
12/08, 9:33 PM
posted by:
Lionwithoutpride
DrFill-
You know I will not let you get away with something that is not true. Ford beat Toyota AND Honda in the safety department. And my family needs no further proof. My sister had an ‘08 Civic with side impact airbags that DID NOT DEPLOY in a side impact collision. So, do not give me b.s. about the safety of Honda. You are right about one thing though, Honda and Toyota are great at marketing. They protect their image well. They have to as they have built three separate cars that have convinced myself and my family to never own another Toyota or Honda. Of course, that said, I will not disagree that many MANY more people say they have had wonderful experiences in Hondas and Toyotas. I just mean to throw in my experiences to cheerlead and balance out the cheerleaders on “the other side.”
There is only one thing I will lambast Wagoner on and that is that he said something along the lines of, and sometime around 2003-2005, that the end was NOT near for SUVs and Trucks. He was wrong on that, but DrFill is utterly correct in saying there has been a true renaissance under Wagoner.
SUVs are arguably on there way out (in terms of appreciable numbers . . . though gas is getting cheaper and people are fickle), but Trucks will forever have utility and purpose. To that end, my layman’s opinion is that Wagoner should be looking to partner with any Japanese manufacturers who are willing to sure up their common supplier bases. God help us if that Fiat C.E.O. is right and there are soon to be only 6 auto-manufacturers world-wide!!! DrFill and I can argue another year, but in these lean times even the vaunted Toyota and Honda should be looking for partnerships to make sure supply bases do not become utterly unaffordable.
12/08, 9:46 PM
posted by:
DrFill
Never said the cars are flawless
You and I BOTH know these occrances are MUCH more common domestically, or else they wouldn’t be in this mess to begin with
Haven’t seen many cheering on my side so I assume leadership role
Cost-cutting is a Japanese strength
I wouldn’t worry
DrFill
12/08, 10:13 PM
posted by:
andy
just to add my thoughts on the other guys…
Pontiac – Need some new high performance toy, and keep it as performance brand.
*they need to drop the G3 and G5, or atleast put the turbo in the G5 (or drop the G5 and turbo the vibe), and drop the torrent. keep the g6, g8, and solstice, or and G8 ST.
Chevy – Need to drop at less 3 SUV and some truck too.
*they are dropping the Colorado
Cadillac – They have done a great job, and now just try to keep up with the gas mileage.
*cadillac does a good job on gas mileage compared to audi and bimmer (not that they are particularly bad either though)
Holden (HSV) – The best Australian made, either you hate it or you love it.
*just love, lol
Opel – Grow up too fast, keep it real.
*just love it like holden, since saturn is most likely being discontinued they need to badge some opel cars under Chevy like the astra/ astra twin top, and throw the VXR8 as a package on the G8
Saab – Saab oranginal is a performance brand not a laxury brand, need some improvement.
*they need to be the turbo brand again… but luxury isnt bad either, need the leather to sell the price of the nice turbo
Vauxhall – Just like Pontiac, keep it as performance and it will do good.
*true say
Brand need to be drop from GM:
DAEWOOD – KILL IT, worsest Korean car in the world.
*didnt they already sell Daewoo, just a week or 2 ago?
SATURN – KILL IT, it wasn’t even worth to creat this company at first place.
*they could possible pull saturn as the ‘green’ brand, sounds good, but with saturns history no one would buy into it
GMC – I will say KILL IT, cause you already have too many trucks and SUV in Chevy itself already.
*good call, BUT, i think it would be better to move all trucks/ large suvs under GMC and away form chevy, probably hurt sales… same goes if they drop GMC and just have Chevy for trucks… which is probably why they arent considering dropping GMC.
HUMMER – KILL IT, it is not even worth anything to bring them back at first place.
*HT3 isnt bad, but you are right
BUICK – Too old, not all old people like to drive old style car. KILL IT.
*Buicks are really ncie, especially in the past couple years, and they the chinese like em’ so GM is keepin buick rollin.
12/08, 11:19 PM
posted by:
RaineMan
I’d rather see Lutz go than Wagoner… at least Wagoner believes in Global Warming.
12/08, 11:49 PM
posted by:
Bimmer
andy,
are you on crack?
‘cadillac does a good job on gas mileage compared to audi and bimmer (not that they are particularly bad either though’
BMW has been named the UK’s cleanest premium car manufacturer by http://www.cleangreencars.co.uk. Following independent, industry wise research into CO2 emissions, BMW was found to have the most improved average CO2 emissions of any premium car manufacturer. From January to June 2008, BMW’s average total model range emissions were 161.64g/km while the next lowest belonged to Audi, with 177.36g/km. Over the same period, BMW improved its average emissions by 11.34%, with Audi only managing a 5.78% improvement.
Where’s ANY mention of Cadillac? Show me facts before you talk BS!!!
12/09, 12:36 AM
posted by:
Jordan
if gm sells daewoo you can say goodbye to the chevy aveo, pontiac g3, opel antara, and a number of other vehicles. that south korean development wing is too important to gm.
also, i think it makes money, which isn’t something you can say about all their divisions.
12/09, 8:48 AM
posted by:
Gundy
Don’t kill Saturn, make it what it used to be, and what we need; a cheap, friggin’ plastic (no dents), 40+ mpg 5-star crash rating safe car!!! One of the reasons the big 3, and some others, are in trouble now is because they were riding the SUV craze instead of thinking that maybe there would be a switch in the economy and people would want, and need, HIGH MPG vehicles. Touting that your vehicles get 30 mpg in 2009 (almost) isn’t anything to really brag about. They should be saying that they get FIFTY mpg, then they’d sell enough of ‘em to at least not have to get a handout from the already broke US gov. Just my 2-cents.. Performance will follow, guaranteed, if they build high mpg vehicles. It always does.
12/09, 9:59 AM
posted by:
Z06ified
For those of you so quick to say Wagoner should be fired, name one mistake he made that should be grounds for firing. GM had a lot of problems before Wagoner became CEO. He’s fixed a lot of them, and if you look at GM’s turnaround plan, it makes a lot of sense. GM is a massively huge company – things don’t turnaround on a dime – it takes time, especially when you have to deal with a union that doesn’t cooperate. Of course time is not on GM’s side, but that’s not Wagoner’s fault.
Roger Smith – now THAT was a bad GM CEO. Wagoner is not a Roger Smith – not even close. Those calling for Wagoner’s resignation are completely ignorant and simply playing a blame game because it makes them feel better.
12/09, 2:06 PM
posted by:
inline6
^Couldn’t agree more, Z06.