Detroit -- During the 2009 North American International Auto Show (NAIAS) media days, GM greeted a select number of Canadian automotive journalists to a group interview session with GM Vice Chairman of Global Product Development, Bob Lutz.
During a half hour, this long-running executive who worked successively with Ford, Chrysler and, now, GM, shared his taught on several topics, one of which was what could be labeled as the Congress wishful thinking and the American consumers desire for hybrids and other modern fuel saving technologies.
Here is an extract of this session.
Journalist: Why don't people buy more hybrids and fuel saving vehicles?
Bob Lutz: I've been asked the question several times already. The worst thing that could happen is if we were to produce all of these expensive environmentally sound cars (Volt and others), and just when we would bring them out the gas price goes back down to $1,50 (US) a gallon. It is a problem.
It is much easier to plan the business in Europe, where the gasoline will fluctuate between $6 and $9 a gallon - it's a fluctuation between pain and severe pain! Europeans have no trouble spending the equivalent of $35,000 US on a VW Golf, an Opel Astra or a Ford Focus. Whereas in the States, to move those cars, they have to sell (them) at around $14,000 and $14,500. That's because Europeans select their cars based on their affordable fuel budget.
Americans do exactly the same thing. They base their car purchase on... well they don't exactly run the numbers, but they do it judgmentally: they buy the biggest car that they can afford the gasoline for. And that's why it is such a worry to us and makes our planning so difficult. Because we don't have a sound basis!
The only thing we know for sure is that the government is going to mandate ever more fuel-efficient vehicles. But we're not sure that we can make the public buy them. Because, these things are going to be more expensive than the lower technology vehicles that the industry has been producing up to now, and which the public is totally satisfied with.
Journalist: Does the (US) government not understand that, unless demand is there, you guys can build all you want, but you can't force people to buy it?
Bob Lutz: There is a belief that the industry can somehow do all this for nothing (more). And that's what the union of concerned scientists has essentially told Congress and the media: "don't believe all this stuff, that this is going to cost a lot of money. They (the industry) are just saying that because they don't want to do it. If you (the government) pass the law, they will figure out a way to do it, and it (the car) will cost maybe a couple of hundreds of dollars more. But don't believe this thousands and thousands of dollars stuff."
And of course, it is going to be thousands and thousands of dollars more. And that is going to be a real problem if we don't have the customer in the equation, desiring these newer cars.
During a half hour, this long-running executive who worked successively with Ford, Chrysler and, now, GM, shared his taught on several topics, one of which was what could be labeled as the Congress wishful thinking and the American consumers desire for hybrids and other modern fuel saving technologies.
Here is an extract of this session.
Journalist: Why don't people buy more hybrids and fuel saving vehicles?
Bob Lutz: I've been asked the question several times already. The worst thing that could happen is if we were to produce all of these expensive environmentally sound cars (Volt and others), and just when we would bring them out the gas price goes back down to $1,50 (US) a gallon. It is a problem.
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| Bob Lutz at the 2009 North American International Auto Show |
It is much easier to plan the business in Europe, where the gasoline will fluctuate between $6 and $9 a gallon - it's a fluctuation between pain and severe pain! Europeans have no trouble spending the equivalent of $35,000 US on a VW Golf, an Opel Astra or a Ford Focus. Whereas in the States, to move those cars, they have to sell (them) at around $14,000 and $14,500. That's because Europeans select their cars based on their affordable fuel budget.
Americans do exactly the same thing. They base their car purchase on... well they don't exactly run the numbers, but they do it judgmentally: they buy the biggest car that they can afford the gasoline for. And that's why it is such a worry to us and makes our planning so difficult. Because we don't have a sound basis!
The only thing we know for sure is that the government is going to mandate ever more fuel-efficient vehicles. But we're not sure that we can make the public buy them. Because, these things are going to be more expensive than the lower technology vehicles that the industry has been producing up to now, and which the public is totally satisfied with.
Journalist: Does the (US) government not understand that, unless demand is there, you guys can build all you want, but you can't force people to buy it?
Bob Lutz: There is a belief that the industry can somehow do all this for nothing (more). And that's what the union of concerned scientists has essentially told Congress and the media: "don't believe all this stuff, that this is going to cost a lot of money. They (the industry) are just saying that because they don't want to do it. If you (the government) pass the law, they will figure out a way to do it, and it (the car) will cost maybe a couple of hundreds of dollars more. But don't believe this thousands and thousands of dollars stuff."
And of course, it is going to be thousands and thousands of dollars more. And that is going to be a real problem if we don't have the customer in the equation, desiring these newer cars.