• Skip to main content
  • Skip to primary sidebar

Auto Trends Magazine

Car reviews, industry news, & advice.

Archives for June 2011

Book Review — Car Guys vs. Bean Counters

June 24, 2011 by admin 1 Comment

Former GM vice-chairman offers an insider’s look at a once proud industry.

Bob Lutz is one of the most colorful, if not controversial figures in the automotive industry today. Although he officially retired from General Motors in 2010, ending a 47-year automotive career that also began with GM and included stints at BMW, Ford and Chrysler, Lutz is now a consultant as well as an author, having published two books including his recently released “Car Guys v. Bean Counters.” This book, published in 2011, takes a look at GM’s rise and fall, but with an eye toward the future – something that Lutz sees as promising for one of the largest automakers in the world.

Maximum Bob

“Car Guys” gives the reader insight into the man whose influence in this important industry is often misunderstood, although the nickname “Maximum Bob” suits him well. This term accurately describes a man who goes full throttle, telling you exactly what he likes or dislikes, ignoring social etiquette and often shaking established, if not erroneous beliefs, including calling global warming “a crock.”

Lutz, now in his late 70s, still resembles the tall, handsome ex-Marine whose visibility was at its nadir for decades, but especially evident while he was serving in his second tenure with GM, spanning from 2001 to 2010. During that decade Lutz served as vice-chairman, or lieutenant for Rick Wagoner and then for three post-bankruptcy GM chairmen.

I met Lutz once, at a meet and greet for new media people held at the 2008 North American International Auto Show in Detroit. I also met Rick Wagoner at the same show, but Lutz’ personality was more front and center, as he explained to his captive, yet attentive audience the virtues of the Chevy Volt, an electrified vehicle still some three years away from production.

Industry Troubles

His most recent book outlines the post-war transformation of an auto industry that went from a global innovative powerhouse to one that was gradually overwhelmed by “process” people and stifled by government regulation. Forever a defender of the U.S. auto industry, Lutz outlines how GM, Ford and Chrysler went from greatness to secondary status in a generation, facing an onslaught of cheaply made Japanese cars that were foisted upon the American populace with the consent of Washington bureaucrats concerned that Japan was at risk of being pulled into emerging China’s orbit. The thinking, according to Lutz, was that if Japan’s insulated economy could be strengthened by exporting its products to a willing American consumer, then everyone would benefit. Except, of course, the Big Three, companies Lutz said were dominated by accountants and very slow to adapt to or at least recognize change.

Much of Lutz’ book points out what went wrong with General Motors, a car company that once dominated the market, producing cars that were stylish, plush, fast and desirable. The transformation from powerhouse to also ran began as the company began to be driven by accountants, with design people stripped of their ability to build cars that were attractive or even worthy of consideration.

Management Missteps

Lutz faults top management and an archaic internal culture that lost sight of what the
customer wanted, producing cars that were ill-conceived and poorly executed. Examples of such included the Cadillac Cimarron, a compact car released in the early 1980s, but sharing the same platform and body of its Chevrolet, Pontiac, Oldsmobile and Buick counterparts. Admitting that Cadillac was never quite the “standard of the world,” nonetheless the brand at one time exuded a certain level of respect whereby luxury products everywhere were defined by the “the Cadillac of….” in its respect industry. “The Cadillac of fashion” or the “Cadillac of new homes,” defined products mirroring a marque that at one time lived up to its exalted status.

The reader also sees where a Fortune 500 company, in a bid to maintain global dominance, made numerous executive and financial decisions which cost the company billions of dollars. Saturn was a plan that was ill-conceived, but did manage to attract a loyal, almost cult-like following. Never particularly fond of this “different” car company, nevertheless Lutz believed that Saturn had the products consumers wanted when the brand was canceled, but wasn’t given the advertising support necessary to advance the brand.

EV1, the electric car project, was too expensive and GM invested far more money in big trucks and SUVs, with not enough going toward small cars. Still, Lutz took to task the media, including a handful of blogger irritants whose GM bashing is wide known. Several times Lutz pointed out media bias and of its spoon-feeding of inaccuracies, if not lies, to an American public who supposedly didn’t know better. The “never can do wrong” Japanese have been proven to be vulnerable, with Lutz pointing out the recent recall problems of Toyota, an archnemeis and sometimes partner with GM.

Reconstructing GM

The best of Lutz is reserved for explaining the years leading up to GM’s downfall and eventual bankruptcy, followed by reconstruction. At once an instructor in the ways of improving automotive design as well as a PR guy not afraid to set the record straight, Lutz fought an uphill battle as vice-chairman, battling a culture steeped in tradition, if not in arcane thinking. The tide, however, was changing as cars such as the 2007 Saturn Aura and 2008 Chevrolet Malibu, reflected a GM that was building vehicles that were stylish, attractive and affordable, winning consecutive North American Car of the Year awards.

Although the company was bleeding billions annually, Lutz explained that GM was turning the corner in 2008, with several new and profitable products in the pipeline including the Chevy Camaro and the Chevrolet Cruze. The Cadillac CTS was in its second generation and successful, and the automaker had the Pontiac G8, arguably one of the best Pontiacs ever built, thanks to its Australian brand, Holden.

The downfall for GM came later that year as America’s financial problems came home to roost and as gas prices topped $4 per gallon. Alone, GM might have survived, but put together these twin challenges hammered the Big Three, leading to GM and Chrysler declaring bankruptcy, with Ford allowed to live on by tapping the funds accumulated from its hocked assets.

Going Global

The remainder of Lutz’ book explains how GM has come back from the precipice and has learned from its mistakes. Lutz warns that government regulations, a biased media and fickle consumers remain challenges for a company that has finally learned how to go global and how to get the product mix right. You’d expect Lutz to interject what he would have done if he were chairman and that he has done – devoting an entire chapter to “what might have been.” Yet, Lutz’s candor is refreshing and eye-opening, while still being able to admit his own mistakes and without shredding every one of his vocal opponents or glorifying his proponents.

“Car Guys” offers to the reader an insider’s glimpse into an industry gone wrong, but one that is far different from what we saw as recently as 2008. Lutz may be retired, but his influence lives on in this book as well as in GM’s current and upcoming product line.

Bibliography

Lutz, Bob, Car Guys v. Bean Counters. Portfolio | Penguin Group USA, 2011


See Also — Book Review — The Allure of the Automobile

Filed Under: Book Reviews Tagged With: BOB LUTZ, book review, BUICK, CADILLAC, Chevrolet, GENERAL MOTORS, GM, HUMMER, OLDSMOBILE, Pontiac, Saab

How to Save Thousands on Your New Car

June 23, 2011 by admin Leave a Comment

New car prices continue to rise with the average cost of a new ride costing about $30,000. That is quite a lot of money for a purchase that will lose value the moment you leave the dealer lot and continue to slide for many years to come.

Few of us can do without a car which means finding ways to have a vehicle we want or need, but at price we can afford. Fortunately, there are some excellent options out there for the car shopper, so let’s explore what they are.

Lease New — Buying a new car means you’ll have to put down some money and make payments for three, four or five years…maybe longer. When your car is finally paid off, you’ll be left with a vehicle that will need increasing amounts of maintenance and repairs. Worse, it will be old. That’s why leasing is an excellent option for people who want a new car every three years and want to avoid paying for major repairs. Not all leasing deals are great, but some models require small down payments and reasonable monthly payments.

Lease Used — People who lease sometimes find that they can’t or don’t want to keep a car until their contract has ended. A divorce, job relocation or a need to get a larger car to accommodate a growing family may be some of the reasons why people will want to get out from underneath a lease. Services such as Swapalease.com and LeaseTrader.com have emerged, bringing car shoppers and leased vehicle lessees together. Under this arrangement, you can take over a lease and may avoid paying the residual fees already covered by the lessee, saving you hundreds, even thousands of dollars in costs.

Certified Used — You can’t afford the new car, but you may be able to afford a car that is used, perhaps a year or two old. These vehicles are snapped up by car dealers who know that they present a good value to customers and a source of profit for the dealers. Get a fairly new car that still has a warranty with it and one that has been priced to reflect the depreciation taken over its first year or longer.

Close Out — The best values on any new car lot are those vehicles that are slow sellers. Among the cars hardest to move are the previous generation models, especially as the next generation cars come to the market. If you can live with yesterday’s technology and engineering, which may not be so out of date anyway, then you could find a bargain, one with special rebates and other incentives offered to help move old stock. Examples of cars that fill this description are the Ford Focus, Honda Civic, Hyundai Elantra and Dodge Charger. Models slated for change in the coming year include the Toyota Camry, Chevrolet Malibu and Honda Accord. Models slated to be discontinued include the Buick Lucerne, Cadillac DTS, Dodge Caliber and Ford Ranger.

Hot Incentives — Incentives are one way car manufacturers move iron, with some deals designed to offer far better bargains than others. Typically, the best deals take place toward the end of the model year or calendar year, with rebates ranging from $500 to $3,500. Add in other incentives such as military rebates, recent college grad and loyalty rebates and the savings can prove significant. Shop around too — dealers in your area may offer additional specials, particularly on a trade in.

Considerations

Before you buy any car, contact your auto insurer. You may find that your insurance costs will rise by hundreds of dollars, effectively eating up your savings. Some models, particularly those that test well with the IIHS, are insured for less. Know what all of your costs will be before making a purchase decision, avoiding a surprise that goes beyond sticker shock.

Resources

LeaseTrader.com: Home

SwapaLease.com: Home

AutoTrader.com: Home

Filed Under: Ownership Experience Tagged With: CAR SHOPPING, CERTIFIED PRE-OWNED VEHICLE, consumer tips, LEASE, USED CAR

Primary Sidebar

Recent Posts

  • The Best Ways to Care for Your Tires
  • Contrary to the Latest Rumors, the Ram Dakota Will Return (Maybe)
  • Highlights of the 2021 Cadillac CT4
  • What is Bidirectional Charging?
  • A Look Back at the Ford Mustang II

Recent Comments

  • Ram Gets a Midsize Pickup Truck — Auto Trends Magazine on Contrary to the Latest Rumors, the Ram Dakota Will Return (Maybe)
  • Contrary to the Latest Rumors, the Ram Dakota Will Return (Maybe) — Auto Trends Magazine on Jeep Gladiator Fun Facts
  • Ram Gets a Midsize Pickup Truck — Auto Trends Magazine on Trail Hopping With the New Ford Ranger
  • Contrary to the Latest Rumors, the Ram Dakota Will Return (Maybe) — Auto Trends Magazine on What’s the Future for Chrysler and Dodge Under Stellantis?
  • Cadillac V-Series Blackwing Preview! — Auto Trends Magazine on Highlights of the 2021 Cadillac CT4

Archives

  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • September 2009
  • August 2009
  • July 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • February 2009
  • January 2009
  • December 2008
  • November 2008
  • October 2008
  • September 2008
  • August 2008
  • July 2008
  • June 2008
  • May 2008
  • April 2008

Categories

  • Auto Parts
  • Auto Shows
  • Automotive Career
  • Automotive News
  • Book Reviews
  • Car Tips
  • Classics & Discontinued Models
  • Commentary
  • Commercial Vehicles
  • Concept Vehicles
  • Dealers
  • Engineering & Technology
  • Fleet
  • Fun News
  • Maintenance & Repairs
  • Motorsport
  • New Models
  • New Vehicle Reviews
  • Ownership Experience
  • Product Reviews
  • Special
  • Specifications
  • Uncategorized

Meta

  • Log in
  • Entries feed
  • Comments feed
  • WordPress.org

New!
Check out our Jobs Board!

via GIPHY

Subscribe to Auto Trends

Subscribe in a reader

Social Media

Visit our social media pages:
Facebook
Twitter
Google+
Pinterest

Where is Matt Currently Published?

The Carolinian (new car reviews)
NAPA Know How Blog
On the Road Again

Pages

  • About
  • Authors List
  • Automotive Brochures
  • Contact
  • Industry Jobs
  • Write
    • Style Guide

Categories

Recent Posts

  • The Best Ways to Care for Your Tires
  • Contrary to the Latest Rumors, the Ram Dakota Will Return (Maybe)
  • Highlights of the 2021 Cadillac CT4
  • What is Bidirectional Charging?
  • A Look Back at the Ford Mustang II
  • New Duck-Billed Post Office Trucks Has Some People Quacking
  • Vroom! Lexus Reveals the IS 500 F Sport.
  • Introducing the Kia Carnival MPV
  • Goodyear, Cooper Tire to Join Forces
  • Highlights of the 2021 Nissan Rogue
  • 7 Facts About the 2022 Chevrolet Bolt
  • Introducing the All-New
    2022 Mitsubishi Outlander SUV
  • What’s the Future for Chrysler and Dodge Under Stellantis?
  • All About Sobriety Checkpoints
  • Plug It In: Toyota RAV4 Prime
  • About the Volkswagen Taos
  • All-Wheel Drive Finally Comes to the Toyota Camry and We Like It!
  • Growing EV Industry Leaves Countries and Businesses Racing to Meet Increasing Lithium Demand
  • Introducing the All-New 2022 Nissan Pathfinder Crossover SUV
  • At Last! The All-New 2022 Nissan Frontier Revealed.
  • In Photos: 2021 Ford F-150 Raptor!
  • Cadillac V-Series Blackwing Preview!
  • Cost-Effective Crossover: Nissan Kicks
  • 10 Spring Cleaning Tips for Your Car
  • All-New Acura TLX Takes Charge
  • The Golden Years: 6 Memorable Models From the Original Era of Muscle Cars
  • From Datsun to Nissan: 40th Anniversary of the Maxima Sedan
  • The Mazda CX-5 Brings a Premium Touch to the Compact Crossover Utility Vehicle Segment
  • 4 Car Upholstery Cleaning Tips
  • The 14 Brands of Stellantis
  • Peugeot May Not Return to the U.S. Market After All
  • Next-Generation Sedona Minivan Will Be Renamed the Kia Carnival
  • GM Launches BrightDrop, Its Commercial EV Brand
  • The Refreshed and Handsome
    Lexus IS 350 F Sport
  • What We Know About the All-New 2021 Jeep Grand Cherokee L
  • The All-New and Formidable 2021 Nissan Rogue Crossover
  • Fuel-Efficiency and AWD Champion: 2021 Toyota RAV4 Hybrid
  • Midsize Performance Master: 2021 Hyundai Sonata N-Line
  • Performance Hatchback: The All-New 2021 Mazda Mazda3 Turbo!
  • NACTOY Finalists For 2021 Offer Familiar and Futuristic Choices
  • Super Trooper: Nissan Titan Pickup
  • Behind the Wheel of the Popular 2021 Toyota Corolla Sedan
  • Lucid Motors Completes Arizona Factory
  • A Robust Turbodiesel Comes to the Chevrolet Silverado 1500
  • Mid-Engine Masterpiece: The Eighth-Generation Chevrolet Corvette Stingray
  • Compact Performance:
    2021 Cadillac CT4-V
  • All-Wheel Drive Supplies the Nissan Altima With a Competitive Edge
  • Return of the Toyota Venza!
  • Lexus Brings a Convertible to the Gorgeous LC 500 Line
  • Stellantis Logo Revealed by Peugeot, Fiat Chrysler Ahead of Spring Merger
June 2011
S M T W T F S
 1234
567891011
12131415161718
19202122232425
2627282930  
« May   Jul »

Copyright © 2021 · News Pro on Genesis Framework · WordPress · Log in