Macroeconomic Rebalancing
The Soft Bigotry of Low Expectations

GM's Failure to Mark Its Beliefs to Reality

A Siegel sends us to Glenn Hunter, who reports:

: Bob Lutz, General Motors' vice chairman and chief car guru, says what really turns him on is "doing the unexpected."... Maybe that's why Lutz, who made his name developing behemoths like the V-10 Dodge Viper, is so sold on the fuel-efficient new Chevrolet Volt, which will run on a lithium-ion battery and could go on sale by 2010. "The Volt thrills me because it's the last thing anybody expected from GM," the ex-Marine said at a private lunch in Arlington today.... During a closed-door session with several journalists at the Cacharel restaurant, Lutz declared that:

  • Hybrid cars like those made by Toyota "make no economic sense," because their price will never come down, and diesel autos like those touted by Chrysler are also uneconomic....

  • Global warming is a "total crock of s---." Then he added: "I'm a skeptic, not a denier..."

  • With more and more good-quality cars on the market these days, “you’ve got to look at the business artistically, too. Part of our business is creating blockbusters--just like the movie business--yet we never think of ourselves that way. A car is an exciting mobile sculpture that you want to own, drive and be seen in. That’s why (auto-industry) comeback stories are always design-driven.” One GM car that fills that bill, he said, is Cadillac’s CTS.

  • The best car dealers will thrive even in a sluggish economy. “They’ve got to isolate themselves from the economic forecasts,” Lutz said, “and say, ‘I make my own prosperity.’”

I take such an extraordinary degree of disconnection from reality to be a strong "sell" signal...