TRAVERSE CITY – Former Marine Corps combat pilot Robert A. Lutz became a star executive at GM, Ford, Chrysler and Exide, then returned to GM as vice chairman for Global Product Development. For 40 years he has been a visionary, advocate of innovation and butt-kicker of the lazy-minded. He may also be the greatest promoter since P.T. Barnum. He stole the show Thursday at this the Management Briefing Seminars.

Lutz began his presentation by voiding a “promise” to host David Cole not to make a blatant pitch for GM. “Dave,” Lutz said with a smile as broad as his shoulders, “do you really think I’m going to tell a bunch of respected business people, champions of industry, and members of the press that they should all be buying GM products? I would never do that!” Behind him, three giant screens began blinking “Buy GM!” and “GM=Best!” followed by a montage of GM’s latest vehicles. The room shook with laughter and applause.

Having commandeered the field, Lutz got down to business with an ancient story about a dog that was playing poker. One observer exclaimed, “That’s the most amazing dog I’ve ever seen!” One of the players responded, “He’s not all that amazing. He’s a lousy poker player — every time he has a good hand he wags his tail!”

“Well,” said Lutz, “that’s what we have at GM — a good hand.” Then, he launched into examples to support his claim: Improved manufacturing productivity. International sales that are starting to exceed sales in North America. Buick’s tie with Lexus for top position in J. D. Powers’ vehicle dependability survey. A commitment to helping create improved fuel economy standards that will be better than “unrealistic and expensive CAFE increases.” Introduction of four more hybrid vehicles this year, and 16 more in the next four years. Development of a plug-in Saturn hybrid. 100 fuel cell Chevy Sequels in the hands of consumer test drivers by this fall. The Chevy Volt with GM’s new “E-Flex” propulsion system that generates electricity from multiple sources such as a small bio-fueled motor, a hydrogen fuel cell, “or even directly from the power grid.”

Much will depend, Lutz said, on the success of a joint GM and A123Systems, Inc. development, announced today, to develop high-capacity, high-power nanophosphate lithium batteries. With that, Lutz demonstrated a tiny helicopter powered by such a battery. It promptly fell to the floor. Another try brought the same result. He switched to a backup model that took off, hovered and circled, and then crashed. “Landing is always the hard part,” joked Lutz, himself a licensed helicopter pilot.

Lutz concluded by telling his standing-room-only audience, “The innovation behind this battery development and these vehicle programs is what has me convinced that, in this poker game, we (GM) feel we have a winning hand.”

Earlier in the program, Frank Klegon, Chrysler’s executive vice president, Product Development, outlined his company’s Recovery and Transformation Plan, or RTP. He ticked off RTP goals and progress in meeting them such as improved manufacturing efficiency, continuing quality gains, strong increases in international sales, a $3 billion investment in new powertrains, Chrysler’s agreement with China’s Chery to develop small and subcompact cars for international markets, a partnership with Getrag to produce fuel-efficient dual clutch transmissions, Chrysler’s new limited lifetime powertrain warranty, and an all-out move to demonstrate Chrysler’s claim to leadership in diesel technology and promotion of clean, renewable biodiesel fuel.

Klegon cited a Power survey indicating that 23 percent of Americans would consider puchasing a clean, diesel-powered vehicle if the additional cost could be limited to about $1,500. “Current actual cost can add more than $5,000 to each vehicle,” Klegon said. This is a tough challenge that Chrysler, along with all its competitors, will have to face and overcome. There is increasing evidence, however, that this difficult new era into which the entire auto industry has been forced by societal, economic and international forces will produce an overdue and potentially highly beneficial transformation.

Others on the program included Magma International president Mark Hogan, Honda of America senior vice president Larry Jutte, Toyota Technical Center executive program manager Andrew Lund, Ford Motor Co. V-P Barb Samardzich, GM Global Purchasing Group vice president Bo Andersson, ArvinMeritor senior vice president Phil Martens, and Faurecia N/A president James Orchard.

But, today, the stage belonged to Bob Lutz.

This special report to MITechNews.Com was written by Neil Jackson of Hudson Mills Communications.

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