Bob Lutz criticizes Jennifer Granholm for pursuing Toyota engineering center
Longtime auto industry executive Bob Lutz, speaking to the Associated Press, criticized former Gov. Jennifer Granholm's efforts to lure Japanese automaker Toyota to establish an engineering facility in the Ann Arbor area.
Lutz, an Ann Arbor area resident who recently re-joined General Motors as an adviser, suggested that the Toyota Technical Center's expansion was not a major economic win for the region.
General Motors adviser Bob Lutz
John F. Martin | General Motors
Granholm successfully fought the proposed sale of state-owned property to an Oakland County developer, favoring Toyota's acquisition of the property at a much lower price.
But Lutz told the AP this week that the Toyota operation wasn't a net job creator.
"It's a zero sum game," he said.
The AP, paraphrasing Lutz, said the quotable executive was "noting that if a Toyota plant brought 2,000 new jobs to the state, it's likely the Detroit automakers would have had to lay off the same number as they lost sales to the competition."
"I personally liked Jennifer Granholm," Lutz said, according to the AP. But "once it looked like Toyota was going to win and take over the world, she went to Japan and wooed Toyota."
Lutz also revealed in the article that he briefly considered a run for governor in 2010.
Contact AnnArbor.com's Nathan Bomey at (734) 623-2587 or nathanbomey@annarbor.com. You can also follow him on Twitter or subscribe to AnnArbor.com's newsletters.
Comments
snapshot
Thu, Sep 15, 2011 : 4:38 a.m.
Why does the media keep giving press to a guy who was instrumental in creating a failing company that still owes the tazpayers 23 Billion dollars? Lutz's advice will lead to further failures in the economic future of Michigan.
Dcam
Wed, Sep 14, 2011 : 8:35 p.m.
Bob Lutz, will he ever go away? He's left his mark in the auto industry, pocketing $100 million for his part in selling Chrysler to Daimler is just one mark. And wearing three hats while Vice-chair at GM's another. As Chairman Emirtus at Exiide, which he bankrupted, Chairman/CEO Cunningham Motors and GM Vice-Chairman, however, he saw no conflicts of interest. He said if his Cunningham Motors had a good idea he'd never share it with GM and vice versa. His best quote by far, however, is from David Cole's 2006? Traverse City Conference. He said that believe auto executives should be blamed for the downward spiral of the Big Three one would have to believe they all got stupid simultaneously. Bob Lutz has been around too long. Time to head to the scrapyard, Bob - and take your buddy David Cole with you.
Edward R Murrow's Ghost
Wed, Sep 14, 2011 : 10:44 a.m.
If Mr. Lutz was so outraged at the time about this--if he thought it such a horrific move for the state, for the nation, and for his company and its workers, he ought to have gone public AT THE TIME in order to garner public support for his case. That is, after all, how democracies work. But I do understand why someone uber rich like Mr. Lutz would think that private conversations between the uber rich and politicians ought count more than the voice of the people. The uber rich tend not to like the dirtiness of democracy. But that not withstanding, his failure to go public AT THAT TIME with his objections mean this is nothing but a cheap shot NOW. Finally, one last thought: Whether or not Lutz is right (or was right) is beside the point. The TTC was going to be built. The only question was WHERE was it going to be built. If it were built in Tiumbuktu, it was going to cost GM jobs (again, assuming Lutz isn't just makin' it up as a cheap shot). If that's the case, that was a factor that the governor didn't need to consider. GM was going to lose those jobs. So her only question was, should the Toyota jobs be in Michigan or should they be somewhere else. And I'm certain Mr. Lutz understood that, which also makes his statement an after-the-fact cheap shot. Or, in the alternative, if he really did not understand this, it would explain the disastrous management of the American automobile industry for the last two decades. Good Night and Good Luck
Dave Sullivan
Wed, Sep 14, 2011 : 3:31 a.m.
The fact is, Toyota used to have a tech center off of Plymouth rd. They wanted a new building....no jobs were really added.
Blazingly Busy
Wed, Sep 14, 2011 : 9:03 a.m.
Not true. Also, someone commented that the old state mental institution property should have gone to the highest bidder...WHO else even tried to buy the property?
Whoozonfirst
Wed, Sep 14, 2011 : 2:20 a.m.
The only problem with Lutz is that people don't listen to him. If you don't think it's a "zero sum game" then how come the big three have lost market share ??? Bad cars, low quality, price blah blah,,, it doesn't matter why customers changed, what matters is they went somewhere else (as in zero sum). Read this guy's new book, specifically pay attention to his explanation of CAFE standards lobbying, and maybe you will get a little insight into the way Toyota actually operates. Read it all and you will get some real insight into a guy who knows what he's talking about.
Heardoc
Tue, Sep 13, 2011 : 11:02 p.m.
Many here have missed the point -- it is about the government picking winners and losers. That is what Granholm did -- typical of the far left as demonstrated by Barry (barrack) Obama and Granholm. This property should have been sold to the one who had the money to buy the property in an open market. Granholm and her administration forced this sale to toyota. Lutz was attempting to point out this fact as well as stating that she went for a foreign company rather than a US company. Much like the dems do when they tout 'european' ways as better for America. Just plain typical of the far lefties purposefully missing the point.
wereintroubl
Fri, Sep 16, 2011 : 12:56 a.m.
Hey Blazey, here you go: <a href="http://www.forbes.com/feeds/afx/2006/01/08/afx2435677.html" rel='nofollow'>http://www.forbes.com/feeds/afx/2006/01/08/afx2435677.html</a> <a href="http://www.autoblog.com/2005/12/06/a-toyota-manufacturing-plant-in-michigan/" rel='nofollow'>http://www.autoblog.com/2005/12/06/a-toyota-manufacturing-plant-in-michigan/</a>
Blazingly Busy
Thu, Sep 15, 2011 : 12:02 p.m.
@wereintroubl, do you have proof that Toyota misrepresented the amount of business they would bring here? Did Toyota ever promise a manufacturing facility here in Michigan? There are two technical centers (Ann Arbor and York Twp) plus some other facilities in the Livonia/Plymouth area. I wouldn't mind seeing proof of your claims.
racerx
Wed, Sep 14, 2011 : 4:59 p.m.
Yup. The government picks winners and losers all the time. Guess this explains the GM bailout too. Only question, which category does it belong in? Winners or losers?
Edward R Murrow's Ghost
Wed, Sep 14, 2011 : 10:24 a.m.
1) And Michigan was in the running? 2) What explains Canada? GN&GL
wereintroubl
Wed, Sep 14, 2011 : 6:04 a.m.
Mr Ghost: I was referring to the Toyota assembly plants in San Antonio Texas, Cambridge Ontario, Tupolo Mississippi.
Edward R Murrow's Ghost
Wed, Sep 14, 2011 : 3:15 a.m.
"Instead the REAL investments, the billion dollar plants and the thousands of spinoff jobs, went to Mississippi, Texas, Ontario" Really? Examples, please? And presuming you can find examples where Michigan lost businesses to Ontario, what explains that given Canada's national health care system and is union friendly environment? Good Night and Good Luck
wereintroubl
Wed, Sep 14, 2011 : 2:14 a.m.
I see your point, but all governments pick winners and loosers. However, in this case, Granholm was under fhe false assumtion that this would be one of many investments in the state by Toyota. Instead the REAL investments, the billion dollar plants and the thousands of spinoff jobs, went to Mississippi, Texas, Ontario, etc.
Heardoc
Wed, Sep 14, 2011 : 1:52 a.m.
Yes, this has been more common now with the far left but real america -- one that dictates a government be for the people and not for the government as it is now --- the leftists want to have control of the nations economy -- that is why unemployment is over 9%, real income is dropping for middle america and falling housing prices (thanks Barney Frank and Chris Dodd).
AfterDark
Wed, Sep 14, 2011 : 1:17 a.m.
The government picks winners and losers all the time - that's not anything new or unique to one party. GM has gotten its share of perks over the years.
Bob Martel
Tue, Sep 13, 2011 : 9:54 p.m.
Lutz may be a good "car guy" but he sure knows very little about economics!
Edward R Murrow's Ghost
Wed, Sep 14, 2011 : 10:28 a.m.
HD wrote: "you have mis-stated the facts" You can, of course, enlighten us as to what your "facts" are? Good Night and Good Luck
Heardoc
Tue, Sep 13, 2011 : 11:03 p.m.
you have mis-stated the facts -- please be more accurate in your postings.........
AfterDark
Tue, Sep 13, 2011 : 10:04 p.m.
He's really not a "car guy" in that he has no technical background - he's a biz major. Lee Iacocca and Alan Mulally both have engineering backgrounds.
mun
Tue, Sep 13, 2011 : 9:18 p.m.
Let's ask the employees at Toyota in York Twp and Ann Arbor Twp if this is a "zero sum game."
wereintroubl
Wed, Sep 14, 2011 : 6:51 p.m.
To Busy: The lost jobs are due in part to Japan's trading practices and the floating of their industry by their government. The "service" that TTC provies benefits Georgetown, KY, San Antonio, Tx, Cambridge and Woodstock Ont, and Tupolo, MS- plants that produce products that compete with Big Three plants in Flint, Pontiac, Detroit, Lansing, etc. In automaking, the real value is in the manufacutre of the vehichle. The investment in TTC was about a tenth of what an investment in an assembly plant would be, and there are about 16 times more spinoff jobs created by an assembly plant than an office. Toyota that does such a good job in wrapping themselves around the flag would have done this state a lot better if they built an assembly plant here or even an engine plant here- especially in the economic "death row" cities of Flint, Pontiac, and Detroit. The economic benefit would be a lot greater.
racerx
Wed, Sep 14, 2011 : 4:57 p.m.
The demise of the domestic auto industry, particularly GM, has more to do with the quality of their cars, poor planning for the future, recognizing market trends (GM had the 1st mini-van but didn't act on it ala Chrysler), high union contracts, over capacity, lackluster products, overlapping products for 4 car divisions, oh never mind.
Blazingly Busy
Wed, Sep 14, 2011 : 9:01 a.m.
@wereintroubl and the jobs lost in Detroit and Flint were all because of TTC?
wereintroubl
Wed, Sep 14, 2011 : 2:11 a.m.
We should ask the good people in Flint, Pontiac, Detroit, Moraine Ohio, and other graveyards of the American Dream what they think as well. The 1K jobs in York are great, but what about the hundrends of thousands that have been lost in this state due to the unlevel playing field.
Edward R Murrow's Ghost
Tue, Sep 13, 2011 : 9:08 p.m.
I'll bet a montyh's pay that Lutz supports Snyder's trip to China in order to attract Chinese investment to the state. This is simply cheap shot. If he was so opposed to the effort he should have spoken up at the time. But that didn't happen. Good Night and Good Luck
Edward R Murrow's Ghost
Wed, Sep 14, 2011 : 10:43 a.m.
I see the ever-present yet inconsistent Canadian-employed A2.com censors are at it again. HD wrote: "so it seems to me you should be happy with china investments here in Michigan" Nowhere did I make a judgment about the value of Chinese investment in Michigan--good or bad. Nowhere. I was simply pointing out a likely incongruity in Lutz's much-too-late public opposition to the TTC. And if Mr. Lutz was so outraged at the time about this--if he thought it such a horrific move for the state, for the nation, and for his company and its workers, he ought to have gone public AT THE TIME in order to garner public support for his case. That is, after all, how democracies work. But I do understand why someone uber rich like Mr. Lutz would think that private conversations between the uber rich and politicians ought count more than the voice of the people. The uber rich tend not to like the dirtiness of democracy. But that not withstanding, his failure to go public AT THAT TIME with his objections mean this is nothing but a cheap shot NOW. Finally, one last thought: Whether or not Lutz is right (or was right) is beside the point. The TTC was going to be built/ The only question was WHERE was it going to be built. If it were built in Tiumbuktu, it was going to cost GM jobs (again, assuming Lutz isn't just makin' it up as a cheap shot). If that's the case, that was a factor that the governor didn't need to consider. GM was going to lose those jobs. So her only question was, should the Toyota jobs be in Michigan or should they be somewhere else. And I'm certain Mr. Lutz understood that, which also make his statement an after-the-fact cheap shot. Or, in the alternative, if he really did not understand that, it would explain the disastrous management of the American automobile industry for the last two decades. GN&GL Good Night and Good Luck
Heardoc
Tue, Sep 13, 2011 : 11:08 p.m.
As far as cheap shots -- you appear to be an expert. Lutz stated the facts -- and yes it is good to have china investments. You seem to not have any problem in spending money we don't have (borrowed from China) Promote government spending on social programs -- so it seems to me you should be happy with china investments here in Michigan. As far as speaking at the time -- I believe they were in discussions with Granholm--- she just did not listen as she thinks she knew better --much like most leftists.
Cash
Tue, Sep 13, 2011 : 8:43 p.m.
I'm no Toyota fan, but I would guess the folks employed at that technical center think it was a darned good deal! Things are so tough for most people (unlike Lutz who flies through life on GMs Golden Parachute) if the devil offered them a job shoveling coal in hell, they'd take it and say "thank you, sir".
Blazingly Busy
Wed, Sep 14, 2011 : 9 a.m.
Amen. I am very glad that they build TTC.
pseudo
Tue, Sep 13, 2011 : 7:21 p.m.
yadda yadda yadda...yabber yabber yabber...I was right, I was right I was right...baloney. This guy is the dick cheney of the automotive industry.
Chase Ingersoll
Tue, Sep 13, 2011 : 7:04 p.m.
The political hacks and the corporatist hacks point the finger at each other, while their remaining hands pick the wallet of the few tax payers who are not on a federal or state subsidized gravy train. With as little success as either of these two had....why is there an article being written about either of them?
Rork Kuick
Tue, Sep 13, 2011 : 6:57 p.m.
Lutz makes no sense. If Toyota builds the center in Ohio, then Ohio would have the 2000 more jobs and we wouldn't, and the effect on "lost sales" would be approximately identical for GM, Ford, Crys. Remedial math for Lutz, and maybe also for the reporter who let him say that nonsense unchallenged. I think Lutz will just make things up on this topic, but what might be true: Toyota has head-hunted, and you have to pay your best engineers a bit extra to keep them, since demand has increased. I think the more engineering expertise we can concentrate in MI, the better.
Blazingly Busy
Tue, Sep 13, 2011 : 6:39 p.m.
Well, I was out of a job for a couple of years and now I have a job because of Toyota so...I'd say they created at least ONE job!
wereintroubl
Tue, Sep 13, 2011 : 6:23 p.m.
I agree with . The only reason why Toyota built their little engineering center in Michigan was to be able to attract the engineering talent from Ford, GM, and Chrysler- this was especially true when trying to design the Tundra pickup. In essense, the engineers at Toyota's center helped to design cars that were built everywhere else BUT Michigan. Hence at the end of the day you were actually helping to subsidize your own demise because every Toyota plant built outside Michigan meant a Big Three plant closed, many of which were in Michigan. Now I would have been in favor of offering Toyota a break for their engineering building IF they also were to build a MANUFACTURING plant in Michigan. I consdier this one of Granholm's biggest failures.
racerx
Wed, Sep 14, 2011 : 4:53 p.m.
From my understanding, the Tundra is built in Texas is it not?
racerx
Tue, Sep 13, 2011 : 6:12 p.m.
This from a company that has a design center in Korea, and another engineering center in Germany, builds quite a few of their vehicles in Mexico and Canada, and is investing heavily in emerging markets like China. Yup. You got it Lutz, a zero sum game. At least Toyota didn't go bankrupt unlike during your stem at the helm.
wereintroubl
Tue, Sep 13, 2011 : 6:17 p.m.
Perhaps GM would not have gone bankrupt if the Japanese government had not subsidized Toyota all of these years, if the US did not bail out Toyota in the 1950s and if Japan opened their markets to US-made products. I guarantee you Japan would not let ANY of their automakers go bankrupt let alone Toyota.
treetowncartel
Tue, Sep 13, 2011 : 6:06 p.m.
Well now, if GM centralized all its global work in Michigan, didn't lose a significant umber of well paying jobs, go into bankruptcy and receive a government bailout, this position might be tenable.
wereintroubl
Tue, Sep 13, 2011 : 6:25 p.m.
Perhaps GM would not have gone bankrupt if the Japanese government had not subsidized Toyota all of these years, if the US did not bail out Toyota in the 1950s and if Japan opened their markets to US-made products. I guarantee you Japan would not let ANY of their automakers go bankrupt let alone Toyota.