ON THE TABLE

February 16, 2011

Bob Lutz. Editor-in-Chief's Note: From the "Just When I Thought I Was Out... They Pull Me Back In" File comes word that GM is considering formalizing Maximum Bob's advisory role to GM's product development process, according to a report by Christina Rogers and David Shephardson in The Detroit News. While informally doing it now, Bob's role could ramp-up considerably in both time and influence as it is crystal clear that "Lt. Dan" Akerson's knee-jerk management moves  -- "promoting" Tom Stephens up and out of the way and making ill-qualified Mary Barra as head of product development -- have been disastrous. I warned in my columns over the last several weeks that Akerson's inexperience and total lack of "feel" for this business could be devastating to GM in the market in the 2014-2016 time frame. And judging by what I've heard since from within the trenches at GM I am even more concerned, if that's possible. Bringing back Bob Lutz to continue what he was doing at the peak of his assignment at GM would stabilize the ship and juice the morale in product development. And it may even prevent some major gaffes when it comes to GM's future product competitiveness. But it will not mask the fact that Dan Akerson is the wrong guy, at the wrong time, at the wrong company. And until he and the GM Board -- who are culpable in promoting Akerson beyond his stripes -- are rode out of this town on a rail, GM will be in danger of falling into The Abyss once again. - PMD

 R.I.P. Smart. Editor-in-Chief's Note: Mercedes-Benz is going to take over the distribution of Smart vehicles from Penske Automotive Group here in the U.S. for a few solid reasons. This market was the only market around the world where Mercedes and Smart had separate distribution networks, and Mercedes needs more small car volume leading up to the ramp-up of 2016 fuel economy standards. Roger Penske -- with ex-GM marketing executive Jill Lajdziak at the helm -- did everything in his power to make Smart a viable entity in this market, but the realities of the product overcame any of its positives. When $4.00 per gallon gas took hold of the country the launch of Smart looked pretty uh, smart. But when gas prices tumbled back down the glaring limitations of the Smart car became even more noticeable. In context the Smart car's mileage was never that great, and with each arrival of a new small car entry into the market its mileage looked merely average. But the recalcitrant transmission was the car's Achilles Heel, and it just never got better and it never got fixed. And in typically classically arrogant German car executive fashion, the powers that be at Mercedes-Benz have no idea that the Smart car isn't going to contribute anything of significance to their fuel economy bottom line by 2016, because there's no compelling reason - not one - as to why people should buy the car. The Bottom Line? If Penske & Co, couldn't make a go of Smart in this market, Mercedes doesn't have a snowball's chance in hell of doing anything with the brand either. - PMD

 The Obama Administration. Editor-in-Chief's Note: They're proposing that this country goes "all-in" for electric and extended-range electric vehicles in the new budget, basically cutting clean diesel and other technologies off at the knees. Memo to the Obama administration and the other political boneheads in Washington and Northern California: The Electrification of America is a pipe dream that won't resolve itself anytime soon. To not embrace clean diesels is a monumental, short-sighted mistake. But then again with rational thought in such short supply in those aforementioned touchy-feel enclaves should we really expect anything else? Ridiculous. - PMD

The Autoextremist. Editor-in-Chief's Note: My rants against Porsche for their forays into SUV Hell and other transgressions against the brand -- four door sedans, anyone? -- are now familiar to longtime readers of this publication. My rationale was that every time one of these "non" Porsches was unleashed into the market, a little bit more of the authentic Porsche brand essence and character was chipped away with it. I still believe that and it still pisses me off greatly, but there's no denying that the profits generated by buyers who don't give a shit about brand essence has paid off handsomely for Porsche. And with the emerging Chinese market now dominating basically every decision made at car companies around the world, the operating principles pushed forth by Porsche that goes something like this -- "we will put our crest on anything that moves if it will make us enough money" -- can't be argued with. A stretched, longer wheelbase Panamera for the Chinese market? Why not? A version of the Audi Q5 called the Cajun? It doesn't matter, it will make a fortune. As long as Porsche keeps making cars for the True Believers that still reek of the Porsche essence and look, feel and most important drive like "real" Porsches -- at least for the dwindling few of us left that remember what that was really like, anyway -- then it's not "all good" by any means, but it is the reality of the Chinese-driven automotive market we're living in today. I fought the good fight, but ultimately I was wrong. Now, if Porsche stops making cars for the True Believers, then all bets are off and I'll fire up the long guns once again. But in the meantime, I'll take my 911 GTS Coupe in Black, please. - PMD