The New General Motors

" Just when he thought he -- out they pull them back in General Motors vice chairman Robert Lutz plans to retire but now -- staying on at GM as it fights to survive. Moments ago he went on the record about GM's exit today from bankruptcy protection and the future of the company. Vice chairman that the lunch thank you for being with us. Good to be Williams thank you. As saying you supposed to be retiring and they've asked you to stay on to oversee this new GM. What is going to be -- about GM and why should somebody buy a GM vehicle."

" Well it that the key reason to buy -- GM vehicle is not because it's the new GM we've emerge from bankruptcy is the fact that. Over the last five years we have. Completely revamped their product line up but I would now say we're building the best cars and trucks in General Motors history. And that's not just us saying -- that's generally corroborated by the specialist precedent. Witness but all the car of the year in truck of the year honors we've got so that's. That is the number one reason but I think the public the buying public could have a lot of confidence in us because. For the first time we are fully competitive company with a sound balance sheet. With a lot of -- billion dollar legacy costs and interest charges going so. We are now going to be a very much leaner company but we're no longer debt ridden. We're gonna move fast we've consolidated down before Branson. I think this is gonna be a very very. Fast moving and a very successful company."

" Tell you about the sport branch how did you decide which brands to keep which cars to keep making -- we heard talk of the hot red hot Camaro. That is going to be manufactured. Tell -- HS which brands to keep."

" Well I don't have the boot of the Camara was not only -- being manufactured is -- theater and who's been in production for a couple of months and it is selling at a furious pace. Its sales -- on do they call it white cotton and we we agree to we're retailing about 9000 a month so it's it's an amazing success. And we haven't even started advertising the vehicle -- But how -- we decided we'd -- to select the brand that's very interesting Chevrolet is. One of the largest brands in the world it's approaching five million units sales in the world so even if Chevrolet were an independent card company. They would be large. That is our value brand around the world whether it's east blocker. The middle East Africa or Asia Chevrolet is our core brands. Now Cadillac is another no brainer. There's our luxury brand I don't think a multi brand company can really exist without a luxury brand at the top. So Cadillac is one of our focus friends and it's also an important friend for a student what is now the world's largest automobile market and that's China. And GMC is a solid brand it is perhaps. The General Motors brand with the best overall reputation of the strongest brand health. And that people a lot of people say hey if I'm gonna buy a truck I want -- Gypsies so it's a very powerful strong for truck brand. And frankly it's added it's a brilliant financial performer to go. And good literally get down to the choice. Do we keep -- do we keep Pontiac in my prime I am personally a big Pontiac clover I love what they stand for -- level out of the cars the Pontiac is doing today. Which unfortunately you're gonna go away. But let me."

" look at secondhand applications and under."

" Sorry for the delay but let me ask you I'm not hearing you talk about any hybrids are you under pressure from the government to. Maybe he's more fuel efficient these did not sound like here. New fuel efficient vehicles."

" Well. I was afraid that we would get under a lot of pressure from the government to. Because that's what everybody was saying the government's gonna make him. Do nothing but green cars and my worry what initially was if they do that they're gonna make a spy vehicle and make us produce vehicles that the American public doesn't really wanna buy. Happily I was I got to know the members of the task force I realize they have one overriding objective only. And that is to make -- General Motors into a streamlined. Successful company. -- they absolutely want us to. Keep producing tomorrow's -- producing corvettes to producing full sized pickup trucks keep producing sport utilities and so forth provided in this applies to every other car company. We have to meet the future fuel economy regulations so as long as we have the technology in the vehicles that meet the fuel economy regulations. -- the US government absolutely wants us to keep. Fulfilling the needs of these kinds of the American public because they realize that's the only way we're going to be successful and is the only way the taxpayer is gonna get her money."

" It could let me just quickly ask you about this case being brought by Stillwater mining they're saying that. You're breaking contract with them and buying over and Russia and South Africa platinum that they make. And that this is going to hurt them they're gonna lose a lot of jobs thousands of jobs and fifty million dollars how do you respond."

" I respond by telling you it's the first I've heard of it and I know absolutely totally nothing about it. -- how many jobs will be lost in this restructuring how many plants -- should be closed to create this new GM. Well and a I think think we have we have said that there are additional plant closings and not being responsible for manufacturing -- I'm not gonna know you know start listing plants and saying which ones that are which ones are and what country or region. But as soon as Fritz Henderson reiterated today we are going to reduce. A salaried and hourly employee and employment in the United States rights 35%. Week and we hope. To eliminate a lot of the executive positions. Because. We we know who much leaner with a much leaner company we're gonna eliminate layers of of management. And what we're gonna increase spans of control. So we're gonna get down to sixty odd thousand employees and the United States and of course that is a drastic reduction from what we used to. And you know all of us all of us very much regret. Seeing people go and seeing plants close but. That is just the way it is when when a company has to adjust to a much smaller market size which we we've worked. Currently at a rate of about. -- point eight million vehicles a year for the entire industry which is. Just about half of the seventeen and a half million that we view that the US was selling just a couple of years ago. You have to make the downward adjustment is and the suppliers who listened the supplies to the supply is having that's life."

" Okay thank you Robert Lutz vice chairman of the new GM thanks for being with us. --"