The other day, Bob Lutz, the General Motors vice-chairman in charge of product development, described global warming as “a total crock of shit”. He went on to say his views on the subject made no difference to his commitment to producing energy-saving cars, including the Chevy Volt electric vehicle.

Mr Lutz did not make clear whether he did not believe in global warming per se, or merely not that it was exacerbated by CO2 emissions. In any case, he said, he believed in reducing energy consumption in order to make the US energy-independent.

Funnily enough, his remarks at a private lunch with reporters caused a bit of an outcry and Mr Lutz has returned to the topic on his blog. You can read his explanation here, but his argument is essentially that, whatever his beliefs happen to be, he will work hard to fulfil GM’s business strategy.

Although I can sort of see what he means, his remarks are a problem, both for himself and for GM.

First, there is the matter of his personal credibility. Mr Lutz is well-liked by reporters because of his John McCain-like proclivity for hanging out and talking bluntly about anything they care to raise with him. He also has a reputation as a Detroit “car guy” who talks openly on any and every topic. This has saved him from an even harsher backlash.

I have seen him talk about the Volt and the need for fuel-efficiency and he was impressive. Now it turns out that Mr Lutz was simply being a salesman. He appears to be saying that he did not completely believe what he was saying - he was simply following orders. The next time I hear him, I will be more sceptical.

Perhaps the notion that executives need to be “authentic” is overdone. A lot of them inevitably have to espouse causes they either do not believe in, or do not feel very strongly about. But if that emerges publicly, it undermines their credibility.

The second problem is that GM is only slowly persuading the sceptics that, having spent many years decrying energy-saving technology and building gas-guzzling pick-up trucks, it has been converted to a different way of doing business. The Volt is only a concept car as yet, but it is already being promoted heavily.

It will not be helped by the revelation that its product chief does not believe in green technology for its own sake, only for reasons of geopolitical strategy. That may be fine for many Americans, although not all of them, but it is a bit of an odd pitch to GM’s global consumers: we are making this car so that US citizens can feel safer, so please buy it.

In terms of strict business logic, and within US borders, Mr Lutz may be justified. In the wider world, he is only thin ice.

February 25th, 2008 in Autos | Permalink