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Do you remember this book?  We always admired Mr. Bob Lutz, the author of the book, and followed him through the years. For people in the auto industry, not many introductions are necessary, but we will attempt a short one for those who aren't aware: Robert A. Lutz President and Chief Executive Officer of Lutz Communications Retired Vice Chairman, General Motors Company Mr. Lutz retired May 1, 2010, as Vice Chairman of General Motors, following a legendary 47-year career in the global automotive industry. Variety of Senior Sales and Marketing positions in Europe (until 1971) General Motors 1963-1971 Executive Vice President of Global Sales and Marketing Member of BMW Board BMW Europe 1971-1974 Executive Vice President of truck operations Chairman of Ford of Europe Executive Vice President of Ford's international operations Member of Ford's Board Ford Motor Company 1974-1986 Executive Vice President Chrysler Corporation Member of Chrysler Corporation Board 1986-1998 Led all of Chrysler's automotive activities, including sales, marketing, product development, manufacturing, and procurement and supply. Served as President and Chief Operating Officer, responsible for Chrysler's car and truck operations worldwide. Retired in 1998 as Vice Chairman. Chief Executive Officer Exide Technologies Chairman (until 2002) Member of Exide's Board of Directors (until 2004) 1998-2001 Vice Chairman of Product Development General Motors 2001-2010 Chairman of GM North America and served in that capacity until April 2005, when assumed responsibility for Global Product Development. Vice Chairman and Senior Advisor providing strategic input into GM’s global design and key product initiatives, in 2009, Vice Chairman, Marketing and Communications, 2009 Vice Chairman, specially assigned to advise on Design and Global Product Development, 2009 President of GM Europe on an interim basis in 2004. Retired in 2010, as Vice Chairman. He serves as a member of the board of trustees for the U.S. Marine Corps University Foundation and Vice Chairman of the Board of Trustees for the Marine Military Academy in Harlingen, Texas. He served as a member of the board for VIA Motors up until the sale of the Company in April of 2023. Lutz received his bachelor's degree in production management from the University of California-Berkeley in 1961, where he earned distinction as a Phi Beta Kappa. He received a master's degree in marketing, with highest honors, from the University of California-Berkeley in 1962. He received an honorary degree of doctor of management from Kettering University on June 21, 2003, and an honorary doctorate of law from Boston University in 1985. The SAE (Society of Automotive Engineers) Foundation named him the recipient of its 2006 Manufacturing Leadership Award, which recognizes individuals who have made meaningful contributions to the development of the automotive industry. He also served as a jet-attack aviator in the United States Marine Corps from 1954 to 1965 and attained the rank of captain. Lutz was born in 1932, in Zurich, Switzerland. Books published: Guts: The Seven Laws of Business That Made Chrysler the World's Hottest Car Company, 1998 (His 12 years with Chrysler are chronicled in this book) Guts: 8 Laws of Business from One of the Most Innovative Business Leaders of our Time, 2003 ( a revised and updated version of the 1998 book) Car Guys vs. Bean Counters: The Battle for the Soul of American Business, 2011 Icons and Idiots: Straight Talk On Leadership, 2013 An accomplished leader, a major executive at all Big 3 and BMW in Europe, was never shy and had a good relationship with the media. He was and still is a very influential personality, informed, knowledgeable and opinionated, often outrageous and controversial but always listened to and appreciated. Even now, in his nineties, he is still in demand, and keeps very busy. So, when we reached out for an interview recently for this blog, we didn't expect much, but we were really excited and surprised to not be completely and politely refused, instead receiving an acceptance for a 2 questions interview. Yes, you read that well - two questions. That may not be a lot, but it is more than what we get from other executives. And remember, this is from a legend in the industry. What questions would you have chosen? It was a tough choice to make, but here is what we eventually stopped at: Lincolnrati: Q1. Brand or product? What is a customer buying? Is it the product or the brand? After so many years in the industry, have you come to a conclusion? BL: "Brand or Product? A complex question the answer to which depends on social class. "Old money", people who have always been wealthy and who are secure in their social status, tend to buy "value". They will prefer a big GMC sport utility to a Cadillac Escalade, because they don't need the "prestige" of Cadillac. At the other end of the socio-economic scale, buyers will opt for Ford, Toyota, Chevrolet, Honda because it's all they can afford. ln the middle and upper-middle class, many people seek higher social status and recognition for their achievement in life. They buy "brand", whether it makes product sense or not. But their choice of vehicle is linked to their desire to be viewed as "smart" and "successful", and BMW, Audi, Mercedes and Porsche, no matter how ugly or over-priced, will do that. Cadillac and Lincoln did not take care of their brands. They sold thinly-disguised Fords and Chevrolets as Lincolns and Cadillacs for decades. They also discounted heavily to maintain volume. You can't do that and maintain exclusive luxury status. They destroyed two formerly great American luxury brands." Lincolnrati: Q2. How can Lincoln be again what it once was (or even more)? Knowing what we know today, in 2024, what can be done? BL: "Lincoln could return to luxury respectability, but it would require a long-term financial commitment and an intense focus on that objective. lt would mean an end to obvious product sharing with Ford. Cadillac recently commenced limited production of the hand-built $300,000 "Celestiq", on which GM certainly won't make money. But, with it's superb long range battery and exquisite interior, it once again places Cadillac up at or near the top of the luxury ladder. Lincoln would have to go beyond that: bigger, more beautiful, more expensive, limited volume, special-order only. And you'd have to wait to get it. There would be NONE in dealer inventory. Would Lincoln make money on it? Most likely not, but doing something extraordinary like that, possibly several times, is the investment in brand status required to make Lincoln a respected, aspirational brand again. Personally, l very much doubt that Ford leadership would be willing to make a commitment like that. lt may come as a surprise to you, but l learned during my career that very, very few senior executives understand brand equity and what it takes to maintain or build it." What do you think? In a world where (in his own words) "everybody is way too nice to everybody" once again he is ready to speak his mind. Do you remember his famous motto: “Often wrong, but seldom in doubt.” His answers to our questions are in line with his famous brand and belief. It makes you wonder if his observations of the past are still valid today: "In our business, taking no risk is to accept the certainty of long-term failure". Especially those "transformations in mentality and focus" that "are not created overnight", may actually take much much longer. And, ultimately, "the lack of problems does not equal the presence of appeal".
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