GM Exec Says Toyota Rules Inside the Beltway
01-11-07, 08:07 AM
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GM Exec Says Toyota Rules Inside the Beltway
GM product czar Bob Lutz looked secure enough posing with the Saturn Aura and Chevrolet Silverado, which won the Detroit auto show Car and Truck of the Year awards. But before long, he was lamenting GM's lesser clout in Washington compared with Toyota.
Date posted: 01-10-2007
DETROIT — General Motors product development chief Bob Lutz, always a colorful interview subject, told reporters that he believes Toyota now has more lobbying strength in Washington, D.C., than his own company.
Lutz made the comment at the North American International Auto Show in Detroit, calling it his "considered opinion." He said Toyota's greater "clout" comes from the company's focus on lobbying, its profitability and the fact that it has facilities in several U.S. states.
The Center for Responsive Politics reports that General Motors actually spent $2 million more on federal lobbying costs in 2005 — some $7.8 million — compared with Toyota, which spent $5.7 million. The Detroit Free Press notes, however, that Toyota has "hired so many former government staffers and administration officials" that it has the advantage in "meetings and attention" in the nation's capital.
What this means to you: Perhaps sour grapes — or perhaps Bob Lutz is right in calling out the declining importance and influence of General Motors.
Source: http://www.edmunds.com/insideline/do...cleId=119167#2
01-11-07, 09:08 AM
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Something I remember hearing a lot growing up in the 80s was that American automakers make something to last maybe 5 years at most and then expect you to trade it in and get something new, in order for them to keep their profit at least constant over time.
01-11-07, 09:10 AM
#5
Lexus Fanatic
GM basically put themselves in the declining position they are in today. Their products, in many ways, started to go downhill in the early 1970's and, despite some improvements on the very latest ones, still, IMO, are not very impressive overall. The only reason, IMO, that GM has lasted as long as it has, in the position they have, is that they have an extremely loyal core of Chevy pickup truck owners, senior-citizen Cadillac/Buick people, and World-War II-generation people who grew up driving GM products and wouldn't touch a German or Japanese-designed car if their lives depended on it. Many of these people have tunnel-vision, and continue to buy and drive GM products, regardless of their quality level, simply BECAUSE they are GM products. 
Last edited by mmarshall; 01-11-07 at 09:14 AM.
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01-11-07, 02:45 PM
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you guys are overreacting. he wasn't saying that better lobbying by toyota is the reason for gm's troubles at all. He was simply making a point - that Toyota seems to have more clout. Lutz isn't a moron so I wouldn't make him out to be one.
01-11-07, 02:49 PM
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and World-War II-generation people who grew up driving GM products and wouldn't touch a German or Japanese-designed car if their lives depended on it. Many of these people have tunnel-vision, and continue to buy and drive GM products, regardless of their quality level, simply BECAUSE they are GM products.
01-11-07, 06:26 PM
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GM basically put themselves in the declining position they are in today. Their products, in many ways, started to go downhill in the early 1970's and, despite some improvements on the very latest ones, still, IMO, are not very impressive overall. The only reason, IMO, that GM has lasted as long as it has, in the position they have, is that they have an extremely loyal core of Chevy pickup truck owners, senior-citizen Cadillac/Buick people, and World-War II-generation people who grew up driving GM products and wouldn't touch a German or Japanese-designed car if their lives depended on it. Many of these people have tunnel-vision, and continue to buy and drive GM products, regardless of their quality level, simply BECAUSE they are GM products.
01-11-07, 09:51 PM
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01-11-07, 10:00 PM
#13
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Interesting remarks from a company that will be making more announcements in the near future. More cutbacks. That was the buzz in Detroit when I was there earlier this week, on print media, over the air and casual conversation.
O/T....Bob Lutz or Bob Barker in this photo?
O/T....Bob Lutz or Bob Barker in this photo?
01-11-07, 10:01 PM
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Japan isn't doing anything negative to the US economy. Many, if not most Japanese vehicles are built state side which creates thousands of jobs here. Imports/exports and specialization all contribute positively the economy of both countries. It isn't Toyota's popularity that is hurting Ford and GM. Make no mistake, GM and Ford's troubles stem from within the companies.
01-11-07, 10:42 PM
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Japan isn't doing anything negative to the US economy. Many, if not most Japanese vehicles are built state side which creates thousands of jobs here. Imports/exports and specialization all contribute positively the economy of both countries. It isn't Toyota's popularity that is hurting Ford and GM. Make no mistake, GM and Ford's troubles stem from within the companies.
