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Lutz's last hurrah; Former Chrysler product leader hired to salvage GM's fortunes.(General Motors Corp. hires Robert A. Lutz as vice chairman of product development)(Brief Article)(Statistical Data Included)

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| August 13, 2001 | Gritzinger, Bob | COPYRIGHT 2001 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

If product is king, General Motors just hired the crown prince.

The three-year deal that makes Robert A. Lutz GM's vice chairman of product development is either a harbinger of a turnaround in priorities, or the desperate act of a deeply troubled company. Hint to his new co-workers: When Lutz refers to street performance, he's not talking Wall Street.

The 69-year-old former vice chairman of Chrysler says he expects good things based on what he's seen of Cadillac's CTS (Cover Story, page 18) and GM's light truck lineup. ``I don't expect I'll be finding any disasters,'' says Lutz, whose leadership at Chrysler was the stuff of legend. The company banged out hit after hit on his watch: Ram trucks, Viper, Stealth, Prowler, cab-forward LH cars, and concepts that included the precursor to the PT Cruiser. Working hand-in-hand with design chief Tom Gale and engineering guru Francois Castaing, Lutz's string of successes was such that, even as he headed out the door in mid-1998 just before the merger with Daimler, few expected he would be gone long from the automotive industry.

Retirement gave him more time to fly high-performance aircraft, but he was also serving as chairman and CEO of battery-maker Exide Technologies. He is also the primary investor in Cunningham Motor Co., a firm hoping to build a $200,000 American-made luxury touring car, and he has dabbled in motorcycles along the way.

Lutz says it's too early to tell whether any of GM's future products need significant altering, but he expects to have a handle on the situation by the time he's officially on board Sept. 1. Four months or so after that, GM vice president of product development Tom Davis retires. If Lutz finds something he feels is a ``terrible mistake,'' he says he'll work out a solution with GM president and CEO Rick Wagoner, North America president Ron Zarrella, and Davis.

Recent developments at GM, like the 4.2-liter inline six-cylinder engines powering midsize SUVs and Quadrasteer all-wheel steering for full-size trucks, are encouraging signs, Lutz says. What Lutz might influence for the future-especially in passenger cars-carries promise. It's too late for changes in ...

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