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I’d like to offer a nice, loud SCREW YOU! to Bob Lutz, the Vice President in charge of building brands he likes and killing those he doesn’t.
Lutz was hidden away in a closet when it came time to ask the US Congress for money for fear that he’d do his usual “open mount – insert foot” routine. But seeing it’s auto show time, GM have wheeled him out, charged his batteries and let him loose.
No doubt he was probably gushing all over Cadillac’s new Converge Renej Merj Splurj Converj or whatever the hell it was called. But when it came time to talk Saab, he did a metaphoric about face and a literal cutting of the ties. Seriously, can you ever expect that Saab will have the support of a company whose collective executive thinks this way?
GM Vice Chairman Bob Lutz, who heads up the top U.S. automaker’s product development efforts, said GM had been hoping for a rebound in financial results at Saab for the nearly two decades it has owned the brand.
“Frankly they’ve been on GM life support,” Lutz told reporters. “It’s just an unending string of losses and the hope is always with the next generation of products they’ll make money and with the next generation of products they’ll make money but when you look at the financial results it’s just never happened.”
Can I ask the obvious questions?
What next generation of products? Why use the plural when your tenure has seen exactly ONE all-new model? And if GM were hoping so much for a rebound over the course of two decades, then why the heck didn’t they take an interest in the company??
Let’s take a look at what Saab have gained since GM took control of the company in 2000.
1. Existence. Saab have continued to exist, for which we are supposed to grovel.
2. The Saab 9-3 range. Great cars, but compromised in enough ways to never have shined like they really should.
3. Um……Direct injection? No. All wheel drive? Only after a Saab guy developed it. Hmmmmm. A full range of genuine Saab vehicles that’s bigger than the range when they took over? No.
Ah! I know!
4. The 9-2x and 9-7x! Of course…..
So what have Saab given to GM?
1. Turbocharging expertise that’s being used across a number of GM vehicles in a number of countries.
2. Safety expertise that’s undoubtedly been incorporated into GM vehicles the world over.
3. The Haldex AWD system that they’re releasing this week in the Cadillac SRX and Buick LaCrosse was developed by Haldex with Saab.
4. Access to a market they wanted, and a market they abused.
5. Insert more here as you see fit.
And what about Lutz, personally?
Michael Mauer’s full range of 9-3 vehicles, including the 9-3x that he said wasn’t suited to American tastes – gone. The 9-3 coupe – gone. The replacement for the Saab 9-5 that should have come about three years ago – gone.
As I said above, how could anyone be expected to believe that this company has faith in the future of its subsidiary, a subsidiary that’s been treated to little more than crumbs off the table, when one of their top executives speaks like this?
GM have absent at the wheel for all but the last three years. They’ve starved Saab of development resources, pinched their design and engineering crew, crushed their advertising and marketing budgets, made a mockery out of the brand image with their cheesy Born From Jets crapiola, made a mockery of them amongst the people who thought Saab were a genuine company with their badge engineering – and then Lutz goes and blames SAAB for not achieving enough.
It seems those “we made mistakes” statements are only reserved for when you’re begging for money.
——
An additional note from the Detroit Motor Show:
General Motors Corp.’s exhibit at the North American International Auto Show demonstrates the divide between the automaker’s haves and have-nots.
An aisle divides GM’s brand displays — along with its corporate strategy.
On one side are Saab, Saturn, Hummer and Pontiac, all lines that are either being sold, downsized, reviewed or possibly killed. The survivors — GMC, Buick and Chevrolet — are safe on the other side of the aisle.
Technically, Cadillac is on the “have not” side, but tucked into a corner, safely separated by a walkway.
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23 responses so far ↓
1 Wimpbeef
// Jan 12, 2009 at 7:57 pm
I dont know how well this have been introduced in other GM brands, but SAAB gave GM Biopower too.
2 swade
// Jan 12, 2009 at 8:03 pm
Yep. Add that to the list. I was writing angry so many things slipped my mind.
3 Ken H
// Jan 12, 2009 at 8:16 pm
When I saw the Caddy Converse – I was worried about swade’s blood pressure…
4 saabaudi
// Jan 12, 2009 at 8:17 pm
Lutz is in the right. Saab has been an unending string of losses in the last ten to twenty years. We as Saab enthusiasts always hoped that the sky would become bluer for the brand but it didn`t happen.
Why should this change in the future? By a 9-4 or a new 9-5?
5 ctm
// Jan 12, 2009 at 8:25 pm
Agree in full. The more he speaks (especially now when they really are in trouble), the more obvious it becomes how little he knows about the auto industry outside the US. As I said before, someone at GM should understand what a clown he is and keep him out of the limelight. He should be retired, sitting on a porch in Florida feeding the ducks, because bringing on a 76 year old man to give the impression that the company is reborn, alive, and has a future is… Well…
Can someone please ask him if GM gonna abandon this “premium” segment in Europe? Or does he still think they gonna be able to sell Cadillacs here? Six years ago he claimed they gonna sell at last 20,000 of them next year. They are at 4,500 and that wont grow – especially not sine the exclusive importer just gave up. Exactly how much money have been spent on this stupid exercise?
Have to say that the quote about “…the hope is always with the next generation of products…” is priceless. Without his consigliere at the side, I bet he wouldn’t even know the basic facts about Saab. Like, what models have they had the last 10 years or if Saab HQ is located in Sweden or Switzerland. Yes, Lutz, I also hopes that Saab makes money on the next generation of products but we never will know until you allow them to build them, right?
Yes, Lutz (or should I say Putz?), it is an “…unending string of losses…”. In fact, the string is so long that one has to wonder if you have been asleep at the helm since you came aboard GM seven years ago. What tools have you given Saab to break that trend? The 9-2X and the 9-7X?
Can someone help him out the back door?
6 BaRa
// Jan 12, 2009 at 8:31 pm
Well, Lutz and co. seem to be preparing a “blame it on Saab” strategy. “Yes, we went bankrupt. But that’s Saab’s fault. Or Humer’s fault. Or…”.
I for one can’t understand why my 9-3 ‘05 and many others so many problems, while the 9-5 doesn’t. Dare I suggest it has to do with Saab not having enough freedom when picking components? Or do you really think they deliberately use(d) crappy hardware in the 9-3? Injecting money is one thing, knowing what result you can expect from that is another.
Lutz has no right to speak, his company has been doing so well the American governement had to inject money in it. I agree that we have to thank GM for not letting Saab disappear. But we have to blame them for letting Saab become what they are today. Just as we have to blame GM for not being able to run their company on their own battleground, the USA. Everyone everywhere is struggling to sell cars, but GM was already in trouble before the crisis started.
Lutz, be a man, act like a responsible exec. Clean up your own doorstep before looking at the neighbour’s.
7 Eduard(Edusaab)
// Jan 12, 2009 at 8:58 pm
How it could be profitable if since the enter of GM, on of the first thing they do is to delay the development of the first 9-5, 3 years. After that they tried to convert Saab as BMW, but doing a 900 based in a vectra. After that, it came the cancellations and so…..at least three projects for the new 9-5 were cancelled. THe first 9-7x project based in the Caddy SRX cancelled, the 9-6x cancelled, the XWD delayed and only put in the market thanks to the money from the BLS development like the new 9-3. The coupe cancelled, the hatch and crossover delayed.
Since the begining of the GM-Saab partnership it was a continious fight between managers for the control of the company, and the Wallenberg family doing nothing, only until take control of the company decided to act and integrate it.
The only good thing for Saab, was the improvement of Trollhattan productivity and investment on it. Saab offered a lot, take a look at some GM managers, like Bo andersson, the purchase czar, were it comes from?? and then safety tech, electronic tech, E85, hybrid tech(University of Lund-Saab) in Europe,advanced production technics, chasis, turbo and so…
How a company with all of that reductions in terms of product range, no capability of improving its range of produtcs, delays and not clear strategy and culture, could survive and be profitable??
They only were interested in use Saab as a catapult for Cadillac in europe, nothing else, at least the last 10 years.
the words should be;
“It’s just an unending string of losses and the hope is always with the next generation of products(THAT WE CANCELLED) they’ll make money and with the next generation of products(THAT WE CANCELLED) they’ll make money but when you look at the financial results it’s just never happened.(BECAUSE WE WERE UNABLE TO MANAGE THE COMPANY AND TAKE CONTROL OF IT)”
8 PT
// Jan 12, 2009 at 9:10 pm
Lutz, you are an idiot condemned by your own words.
9 Grumpy
// Jan 12, 2009 at 9:57 pm
Does anybody take Putz seriously these days anyway. Why Wagoner keeps his little pet around is truly beyond me.
10 Eduard(Edusaab)
// Jan 12, 2009 at 10:04 pm
As we say in Spain….”este tio chochea”, this guy is gaga, or is senile.
always refered to old people, you know…
regards
11 Brian Mills
// Jan 12, 2009 at 10:34 pm
Lutz is a PUTZ!
Saab is too integrated into the parts of GM chassis, powertrain, switchgear etc…to be seperated without more complications for the buyer. Direct Injection, eco power engines, 2.8 Turbo’s, XWD, inserts in seats, steering wheels. GM have reaped plenty from the Saab brand while keeping it alive. Like using a spare body for blood cleaning and parts…
Saab may not have been the financial sales wonder of other brands (if they have had sales wonders from Oldsmobile) but it has been the technological saviour and design instpriation of other GM brands. The focus of Cadillac in Europe was some short sighted thought of a marketing department without research, interviews, consumer polling. This is an example of a bad manuver along with the attitude of Lutz that has put GM in peril.
I am sure that if you need to find Lutz he will be standing in a Cadallic corner at the NAIAS.
Further to note I am saddened to see the Cadilac SRX come out before the 9-4X Saab even though the Saab was released first in concept. No surprise here with the 0 emissions realese hybrid cover up of the convertible 2 years ago to turn it into a VOLT 4 months later. If GM only allowed Saab to do what is doing maybe they could get so positive news eariler than tossing the baby brother back into the closet before stealing the shiny toy and painting it blue and calling it there own!
12 Nate 9-3
// Jan 12, 2009 at 11:41 pm
Bob Lutz is oblivious and unaccountable, along with the other executives at GM. CEOs here in the US love to talk tough and spew the “buck stops here” mantra….that is until they actually need to account for their own failures.
Blaming SAAB is like a parent blaming a child for the household going bankrupt. It is the parent’s responsibility to make sure that the house is in order and that the child be put in the best position to succeed. With that in mind, Bob Lutz needs to be charged for criminal negligence.
What a tool.
13 Dippen
// Jan 13, 2009 at 12:40 am
Lutz…ZzzzZ nothing but a back stabber
someone please send a bomb to his bloody fastlane-blog
14 Markac
// Jan 13, 2009 at 1:28 am
Lutz. You have to spend money to make money. GM’s continued half hearted/half arsed support of Saab never allowed it to produce the goods. If the money that had been wasted on Cadillac’s fruitless overseas ventures had gone into giving Saab a complete model range, then maybe you would have gotten the desired results. You don’t deserve Saab and Saab sure as hell doesn’t deserve you or any of your cronies. Free Saab from these morons!
15 Grumpy
// Jan 13, 2009 at 1:42 am
Just to add a little salt, Saab in Sweden didn’t receive a cent of the US profits when the market was still running well. All aftersales earnings goes straight into GME. And they were forced to pay for the BLS BS development with Saab money. Is that the picture of a caring parent I ask. Show one car company that can show a profit without counting profits the biggest market nor the parts sales. Pffff
16 zippy
// Jan 13, 2009 at 2:13 am
Lutz, you are a bl**dy idiot!
As has been pointed out here you have to invest money in a brand not use the technology developed by Saab in cr*ppy Chevys. It is your sheer incompetence that has got all of GM in this mess anyway. Lets face it Bob – GM builds lousy cars in North America and the fact that Asian cars are eating your market share is evidence of that, only you idiots that run GM are too stupid to see it and now the house is crumbling.
You bought Saab to add a bit of class to GM image and what did you do. Run it into the ground and try to sell Cadillacs in Europe – a continent that still sees Cadillac as those awful pink things that drive like a yacht with fins on them. EUROPEANS HATE CADILLACS YOU DOOFUS!!!
Grumpy made a good point re the BLS but I am mad right now so I am gonna stop before Swade bans me.
All I can say is one thing…if Saab dies then I hope GM dies with it then, Bob, your lifelong achievment would be the death of the US car industry.
RANT OVER!!
17 rian
// Jan 13, 2009 at 2:50 am
FREE TROLLHATTAN!!!
18 max
// Jan 13, 2009 at 5:51 am
Klutz is a clown in the GM Freak Show. Time to move on “Old Boy” Time to move on. We can all see what you have accomplished…..Jack S.it
19 JohnnyBravo
// Jan 13, 2009 at 5:59 am
Typical US managers….. No clue what is happening outside their country. Which is fine, as long as they stick doing buisness there… Ask me how I know – I work for an US company.
Bloody Idiots. They want to sell Cadillac in Europe? They want to sell their crappy, fuel consuming, ugly trucks and Cadillacs to the people in Germany, France, Italy, Sweden? In countries which invented the automobile and built high-class transportation long before a guy called Henry F. started to build a mass product called tin lizzy???? Com’ on. Just a little more common sense, Bob Lutz!
Really, really sad….
20 Edags
// Jan 13, 2009 at 6:27 am
Lutz’s lack of accountability demonstrates exactly why GM is in the straits it is in. He could have admitted that they screwed up by only introducing ONE new (compromised) vehicle in all the years of ownership and how they DILUTED the brand with the 9-2 idiocy. It would have been smart of him to have said that even if he did not believe it since it should be his intention was to make the Saab opportunity look as good as it could for the next buyer.
Just think of how the revenue would have increased with a nice line up of the following:
9-1 Created shortly after the 9X debuted in 2001
9-3 With a hatchback 3/5 door variant
9-5 New car delivered after 7 years instead 11 or 12
9-3X – A luxury mini sportute
Not only would there have been a dramatic revenue increase for Saab but it would have been with a full line up of products that were different from anything you could find in any other GM brand’s showroom and therefore been new business for GM.
21 zippy
// Jan 13, 2009 at 7:23 am
Edags said “Lutz’s lack of accountability demonstrates exactly why GM is in the straits it is in.”
You hit the nail on the head there my friend. Its time for GM North America to cease existing and for Opel and Saab to become a European owned conglomerate akin to VW/Audi!!!
22 Joe Lobo
// Jan 13, 2009 at 8:42 am
Lutz’s behaviour/attitude during hard times is not much better than a politician laying on its back being hammered by the press. Become defensive and blame it on whoever comes handy. It is obvious and as I stated over and over: GM did nothing with Saab where as Ford has lot more to show with what they did with Jaguar let alone Volvo. GM’s ownership of Saab has been a total fiasco and they must be accountable. Blaming it on Saab alone is the biggest farce that proves why they are so much more in the poos than what Ford is. I hope that Saab gets on its feet with the loan form Sweden and another investor/owner. As for GM, they won’t exist in the form we know them. There will be a broken series of companies and businesses where some interest will continue from them but not total ownership. They’ve proven to be incapable of running/handling an enterprise of the size they had.
23 MJL
// Jan 13, 2009 at 9:15 pm
SING IT SWADE!! You are SO RIGHT here.