injdinjn

cribbed this off the GP board

GM's Lutz, Cowger Give Up North American Positions

April 4 (Bloomberg) -- General Motors Corp. Chief Executive Rick Wagoner will take over North American duties from Vice Chairman Robert Lutz and Group Vice President Gary Cowger after the company forecast its biggest quarterly loss in 13 years.

Lutz will now deal with global product development and Cowger will focus on global manufacturing and labor, Detroit- based GM said in a statement today. The company last month slashed its annual profit forecast in half because of falling North American sales and rising costs.

Wagoner's ``neck is in the noose in North America,'' said David Cole, chairman of the Center for Automotive Research in Ann Arbor, Michigan. ``He is saying to shareholders that North America is going to get a full-court press.''

Wagoner is taking control of North America at a time when GM's U.S. market share has fallen to its lowest level in 80 years as Toyota Motor Corp. and other Asian rivals have gained ground. Wagoner said last month he will use lower prices and more advertising to increase sales as he focuses on cutting health care costs and restructuring the North American business.

Chief Financial Officer John Devine and Wagoner said March 16 the company will increase efforts to cut costs and restructure the North American business. The automaker cut North American production 12 percent after U.S. sales fell 5.1 percent in the first three months of the year.

`Trouble'

``There have been rumblings of Cowger being in trouble,'' said Burnham Securities Inc. Analyst David Healy. ``Lutz has been spending more time on global responsibilities, so it doesn't look to me like he's been kicked upstairs.''

Lutz's comments two weeks ago that the company would consider a ``phase-out'' of some lines and that its Pontiac and Buick brands were ``damaged'' may also have displeased Wagoner, Healy said. Lutz retreated from those statements last week in a Denver speech.

General Motors shares rose 7 cents to $29.45 at 10:26 a.m. in New York Stock Exchange composite trading. The shares have fallen 13 percent since the day before the March 16 forecast cut.

Mr. TurboTA

I just hope Lutz stays away from deciding which cars will make the grade!
After hearing about his hating muscle cars, and his shooting his mouth off about Pontiac going down the drain, he needs to be kicked out of GM!
I just hope GM sees the light! Build what we want to drive, instead of having us drive what Lutz wants us too!
I say, get rid of Lutz, and let's see if things change for the better!
I think they will!
I wonder how $$$ much Lutz will get out of GM?

George

91rsowner4life

just woundering do not flame me please. so does this mean the camaro is comming back?

Russ-So Cal

It is probably totally dependant on profits. As long as G.M. continues to loose money, there is no money available for r & d on what is essentially a limited production/interest vehicle. The speed at which a profitable company can go bankrupt now days is such that the next five years may determine whether there is a G.M. still in business or not. Look at Enron or the recent communications company that went bk, both Fortune 500 companies. I think right now the question is will Chevy, Cadillac, Buickl, Pontiac, or Saturn come back? I don't think it is Lutz's fault, he hasn't been there long enough. His predicessor was the guy who determined that G.M. would go almost 100% front wheel drive. He killed the Turbo Buick at a time when Buick sold every one they could build because he took away the platform to go front wheel drive. He got rid of all police business and turned the market over to Ford by dropping the rear drive Impala to go with a downsized front wheel driver. He killed the f-body by refusing to upgrade it and implementing a sales strategy designed to make it impossible for the cars to succeed, and forcing potential customers to buy Mustangs so that he could kill the cars.

MikeDirntRulez

Well, killing the new Zeta platform was originally Lutz's idea I believe. Now if he's not in charge of what platform's deserve R & D and what not, maybe this next dude will bring it back. It's all up in the air right now, and as far as sales go, no, it doesn't look like it. But maybe this guy can turn things around to make GM's start selling.

91rsowner4life

yea thats kind of what i was thinking i hope this new guy can turn it around anyone know any info on him?

PsychoGTA

In the new Motortrend Magazine it talks about the new platforms coming out. And all the new cars that might come with it. Including pontiac G8, Chevelle, Camaro and so on. If I had a scanner I would show you guys. Just get the magazine and check it out.
Peace Out,
PsychoGTA

Jon92TA

I haven't seen the mag yet but I've read where others were talking about re-badging the Manaro/GTO as a Chevelle for Chevy, if they could pull that off maybe they could also as far as to bring back the El Camino based on the Holden Maloo/Ute since they're tooled up for left hand drive as used on the GTO. They appear to be based on the same platform and already have the LS2 & 6spd. That's my kind of SUV!
I'm just dreaming of course, damn SUV craze and gas prices.

Russ-So Cal

Because of the lead time required the piece in Motor Trend was written and sent to the printer long before the anouncement that they were killing the Zeta platform came out. It may have been accurate at the time Motor Trend went to press, but it is out of date now.

JulieGTA

There was a review of the Pontiac G6 in the LA times car section this morning. It's more about whats happening with GM than the car.

MikeDirntRulez

I think GM could have made the G6 a great car, but their advertising stunk..... "The first ever G6" woo hoo..... let's give a whole bunch of G6's to a bunch of middle aged mothers who watch Oprah.

I think they should have advertised it to a younger generation. From what i've seen, middle aged mothers like SUV's and minivans, not 4 dr family sedans. Usually college kids and high school kids get those kinds of cars.

Jon92TA

I seen on TV recently that the G6 was designed by & made for women. I drove one at the last AutoShow in Motion, it's an ok little sedan econo car but it's nothing close to a f-body. Now I hear a G8 will be coming out.
Still not much to get excited about. Sounds like Wagoner will have his hands full trying to keep GM's head above water rather than bringing out any more muscle cars.

BretD 88GTA

Well, as far as GM building a dedicated muscle car, I personally doubt it will happen. The market is too small, unless they did it as a limited production type deal.

The Mustang has succeeded because it was (and still is) primarily promoted a "secretaries" car. The top selling Mustang right now is the V6. Go to a Ford lot and you'll see a bunch of V6 cars, with maybe a handful of V8's.

The V8 Mustangs have always been sold as a way to supplement sales and reach the small enthusiast market.

When I went to Galpin Ford back in January, they had a sea of V6 cars and 0 V8 cars other than a couple Saleens and I beleive 1 GT on the showroom floor.

Ford is even currently running TV spots that say "The Mustang you want is now available. Dealerships have received new inventories of V6 Mustangs!". No joke.

GM needs to come up with something along the same line — a tame coupe aimed at the high-school/sorority/20something girls, with a souped up version available for us gearheads. The car has to have a broad appeal to compete with the Mustang.

Guest

The V8's went into production late, and slow. Ford is trying to figure out ways to produce more of them (Mustangs in general) because they cant keep up with demand, they have been talking about building a new plant.

cali92RS

Partisanship aside, how are the mustangs doing performance-wise (do they meet/exceed expectations), reliability (meaning are there any recalls, are they having trannies blow up) etc.
The reason I ask is that I just havent heard much about them and am wondering if people are dissappointed with them or if they think they are the best thing since sliced bread.

I actually think they look cool.

injdinjn

Like all new cars they are drive by wire, so the computer controls things like rev to 3K and drop the clutch, it won't do it.

Putting 300hp at the wheels theyre running mid 13's.

Im waiting for the 06 500GT. 5.4L supercharged, 450hp. Can you say 12's out of the box.

JulieGTA

What about how the American auto industry in general is holding up against foreign auto car makers? Are they making less domestic cars than ever before, and many factories are closing? Are their domestic cars being built at foreign owned factories? It seems like no matter how popular the car is, they might not be able to produce enough to make a profit.

Guest

There are foreign cars being built in the states, have been for a while. And alot of the domestics arent built here.

I havent heard a whole lot about the new stangs from a reliability standpoint, probably your typical mass production car... some with issues, some without, some mistakes. They all do it. I'd say from a performance standpoint, nobody should be complaining.

Poncho Villa

Very sad indeed what's going on at GM--an article I read said that GM's main problem, is running the company like it still has 40% of the market share: lots of dealerships, multiple models of the same car, and the same car badged under all the different divisions. That, and a reputation as a builder of mediocre but affordable cars that don't stand up to the imports (truthfully GM makes a very good product).

Of course mistakes like the Impala, the Aztek, and a bunch of other forgettable cars can't be overlooked. Where are the cars that pull people into dealerships? Word has it, that r&d money that could've revived the F-cars, was spent on the Corvette, which is no longer an affordable sports car for most people. The GTO doesn't appeal to the import crowd, and just doesn't have the appeal of the Camaro/Firebird.

However, Motor Trend also showed designs for the '08 GTO, and grrrr it sports the nose I had penned (I draw cars) for a new Firebird--a takeoff on the 1st gen car's split grill and four headlamps. Looks pretty good, but IMHO, without the Camaro and Firebird, the General gives the impression that he's been neutered, and stuffing socks in his pants with cars like the GTO, while Ford is stealing the show with the new Mustang.

In order to catch up, GM must pare down its lineup, and keep only the best and most saleable models, make styling more agressive and cutting edge (ie. not the Cobalt), keep prices of cars affordable, and most of all, bring back its most beloved cars of all time besides the Corvette, the Camaro and Firebird.

Oddly enough, sitting in the new Mustang, the interior and exterior dimensions were very much like those of my Thirdgen, and not at all like the old Stang. Hmmm, think Ford is on to something there.

firestorm

I still don't really like the interior of any Mustang. Just don't look good. IMO, they did a really good job on the exterior. Here there are very few V8s on the lots, and they wont let anyone test drive them, nor do they want to special order any. Really pushing the V6s.

As far as GM, they really dont make anything exciting any more other then the $50,000 Vette. And all the dealers want to sell are trucks and SUVs. Not interested!