General Motors has made a “complete total global commitment to a massive onslaught of new products in the next 24 months,” vice chairman, global product development, Bob Lutz said at the London motor show on Tuesday (22 July).
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Referring to GM’s announcement in the US last week of moves intended to boost its liquidity by about US$10bn including white collar job cuts, the axing of salaried retiree health care and executive cash bonuses, a reduction in sales and marketing spend and the postponement of healthcare-related cash transfers and some large vehicle redesign programmes, Lutz (sometimes called simply the automaker’s ‘product czar’ by US media) said: “Those announcements were a clear acknowledgement of the challenges we face, particularly in North America, and a revelation of the decisive actions we’re taking.”
“I firmly believe we are doing all the right things. “But our business results are still not where we need them to be.”
He added the key factor was the rapid and unprecedented rise in the cost of energy.
“The current economic environment is what it is and we’re quickly adjusting to meet the challenges of a changing market,” Lutz said at the unveiling of GM Europe’s new Insignia model line, which replaces the Vectra.
Lutz said it was “full steam ahead” for other GM plans such as eFlex technology and production plants for the Chevrolet Volt.
GM last week announced a redesigned 2010 Chevy Camaro and Lutz noted that the new Chevrolet Cruze ‘global subcompact car’ would go on sale in Europe early in 2009 [after its expected motor show debut at Paris in October].
Lutz said GM had intended to launch all these new models all along.
“Of course, we will adjust our product portfolio to meet the market where it’s headed,” he added. “We will continue to develop… our brands accordingly.”
He said Opel and Vauxhall would continue to spearhead GM growth in Europe.
“Opel is very important to our European plans and Vauxhall’s strong performance in the UK is a big part of that.”
Lutz noted that General Motors Europe volume had grown from 1.7m units in 2002 to 2.2m in and had set a H1 record in 2008 of 1.16m sales.
Such growth had been driven by emerging [eastern] markets such as Russia where sales grew 390% in the 2004-2007 period.
Russia in fact became GME’s single largest market – ahead of Germany – last month.
Graeme Roberts
