GM News: Bob Lutz transfers out.

[TraceZ]

DETROIT — General Motors Corp. (GM) said on Monday that Chief Executive Rick Wagoner (search) will assume the leadership of automotive operations in North America, where the car company has been losing money and market share.

Bob Lutz, chairman of GM North America, and Gary Cowger, president of GM North America, will relinquish their roles and focus full-time on global responsibilities. Lutz will lead GM's global product development activities, and Cowger will focus on global manufacturing and labor.

The moves follow last month's warning by the Detroit automaker that its earnings this year would be as much as 80 percent below its forecast, due to U.S. market share losses to foreign competitors and climbing health-care costs.

"Given the challenges we face in North America, it makes sense for me to assume control of GMNA's (General Motors North America) day-to-day operations and shorten the lines of communication and decision-making," Wagoner said in a statement.

Last month, GM reorganized its global vehicle development and engineering operations, combining four different regions into a single system to speed up the launch of new cars and trucks.

"Now's the right time to accelerate the global integration of two of our most important functions, product development and manufacturing/labor," Wagoner said.

[Dave-S]

Here is a link to a more comprehensive article http://money.cnn.com/2005/04/04/news...gm_leadership/

To me this quote from the article says it all:

GM's current leadership is responsible for the woes at its North American operations. This is like moving around the chairs on the deck of the Titanic," said Peter Morici, business professor at the University of Maryland. He said that GM needs to address what he called GM's "bloated bureaucracy."

[Joe 1320]

To me this quote from the article says it all:

GM's current leadership is responsible for the woes at its North American operations. This is like moving around the chairs on the deck of the Titanic," said Peter Morici, business professor at the University of Maryland. He said that GM needs to address what he called GM's "bloated bureaucracy."

Well...... that pretty much sums things up.

[markd79ta]

This last weekend I attended the autoshow here in Denver. The only GM vehicles that I looked at were the Vette, SSR and the Sky...the rest I could care less about. Heck, I spent more time looking at the imports then I did in the GM section. Pretty Sad. The boys over at DC had everybody's attention. The Ford GT stold the show and there was far more interest in it then the Z06. It was amazing how few people were looking at GM's trucks...it was a ghost town when I looked over there. Their rebadged Lesabre and Park Avenue (Lacrosse & Lucerne) had few if any interest when I walked by there going to the Sky exhibit. Their program to change the names of their cars and stuff a 5.3 horizontally imposed V8 in them is going to fail miserably. They had this big exhibit, twice the size of the Z06, with the new Impala...there were about five people standing in front of it during their presentation. But, one couldn't find a place to stand during the Sky presentation. I guess that should tell them something, shouldn't it? Overall, it was pretty dead in their section. VW, DC, and Honda were the places were you had to wait in line. Actually, I love the new 6sp LS2 SSR, but it is priced so far out of its market.

[Dave M]

Actually, I love the new 6sp LS2 SSR, but it is priced so far out of its market.

The SSR doesn't really have a market, it's a one of a kind vehicle so GM thinks it can price it any way it wants and people will be banging on the doors to get one. They're insane. There's nothing in that vehicle that puts it into the price range they're asking. Sure it's got a high-tech V8 and a retractable hardtop, but GM has to remember it's a 2 seat vehicle with limited practical abilities. i guess they're trying to make it a niche vehicle like the Corvette but it has neither the Corvette history or the performance to justify Corvette prices. If they made the SSR actually usefull to own and/or chopped about 10 grand off the price, then they'd probably sell.

[markd79ta]

If they made the SSR actually usefull to own and/or chopped about 10 grand off the price, then they'd probably sell.

I love the SSR; it would be a fun vehicle that could replace the T/A. A much better replacement then the rebadged Monaro. However, those that bought WS6 Trans Ams as a second "fun" car, when they were new, were upper middle class, typically in their 30s and 40s, who had other priorities then buying a $50,000 Vette. I would buy the SSR today if it were 35k or under. I am not going to drop 50k on it. There were several people looking at the SSR with me. Their comment. "...not going to pay $50,000 for this car!"

[Dave M]

I love the SSR; it would be a fun vehicle that could replace the T/A. A much better replacement then the rebadged Monaro. However, those that bought WS6 Trans Ams as a second "fun" car, when they were new, were upper middle class, typically in their 30s and 40s, who had other priorities then buying a $50,000 Vette. I would buy the SSR today if it were 35k or under. I am not going to drop 50k on it. There were several people looking at the SSR with me. Their comment. "...not going to pay $50,000 for this car!"

Precisely! People are willing to pay $50k for an SUV they can use everyday, but not for a second vehicle. And those who can would go for a vette or viper, especially if you're only looking for a 2 seater.