It’s down to the proverbial wire for General Motors. Within the next several days, the automaker will either work out a last-minute settlement with bondholders or face a historic bankruptcy filing.
To some, bankruptcy or not, there’s an equally significant event occurring with the retirement of GM’s Vice Chairman and “car czar,” Bob Lutz. The spry septuagenarian executive surprised the automotive world when he joined the automaker, early in August 2001 for what was supposed to be a couple-year assignment helping rebuild GM’s once-legendary product development operations. As he leaves, there’s little doubt that the carmaker is building some of the best products it’s made in decades, if not, as he suggests, “the best in our history.” But what happens “if and when” it goes into court-appointed bankruptcy protection?
That was the central theme of a speech by the former Marine pilot to the Automotive Press Association, on Thursday. While he acknowledged there are many unknowns, Lutz insisted, “We will pass through the cleansing fire of a radical restructuring — whether in or out of court” and emerge a “smaller, leaner powerhouse.” Surprisingly, the traditionally conservative Lutz said much of GM’s potential turnaround can be credited to the Obama Administration, which is the first administration “in decades” to actually pay attention to “the largest manufacturing industry in the country.”
Following his speech, Lutz offered his thoughts on a variety of other issues in this question-and-answer session.
Lutz: It’s a matter of ‘if,’ and not when. And if we do, we intend to get in and out very, very soon. (more…)