Author Topic: Book Review: Car Guys vs Bean Counters, by Bob Lutz  (Read 8373 times)

Offline Autos_Editor

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Book Review: Car Guys vs Bean Counters, by Bob Lutz
« on: August 18, 2011, 04:03:30 am »


Well-known automotive industry executive Bob Lutz gives a rare insider's view of what went wrong at GM, and why.

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Offline JohnM

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Re: Book Review: Car Guys vs Bean Counters, by Bob Lutz
« Reply #1 on: August 18, 2011, 07:11:31 am »
Lutz is a straight shooter with a broad perspective and lots of hands on experience.  Just exactly the kind of leadership we need at every level in every industry and government ministry both in Canada and the US.

Unfortunately, we have product and process ignorant MBA educated, brand marketers in the private sector and equally disconnected meeting goers in government.  Hence our current problems which current leadership is not capable of solving.

I'll be very happy to buy this book and give it a read.  Honest, truly expert opinion is hard to come by.

Cheers,
John M.


Offline D70

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Re: Book Review: Car Guys vs Bean Counters, by Bob Lutz
« Reply #2 on: August 18, 2011, 07:33:31 am »
On order from my local library

« Last Edit: August 18, 2011, 11:28:13 am by wing »

Offline nlm

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Re: Book Review: Car Guys vs Bean Counters, by Bob Lutz
« Reply #3 on: August 18, 2011, 08:27:47 am »
Great to know this book is out there. Nice review and thanks for sharing with the rest of us.

Offline aaronk

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Re: Book Review: Car Guys vs Bean Counters, by Bob Lutz
« Reply #4 on: August 18, 2011, 09:43:15 am »
This would be an interesting read. While I can't judge a book by it's cover, I think part of GM's problem is the 'vs.' part. You need bean counters to work WITH car guys, then you end up with something that's fun and doesn't need a bailout to keep the assembly line moving.

Offline mlin32

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Re: Book Review: Car Guys vs Bean Counters, by Bob Lutz
« Reply #5 on: August 18, 2011, 10:20:36 am »
I have the book and it's definitely a good read, not too dense yet with enough business knowledge to make it a must for any MBA or business student (like me).
ø cons: Peugeot 308: Yamaha R3 [/URL]

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Re: Book Review: Car Guys vs Bean Counters, by Bob Lutz
« Reply #6 on: August 18, 2011, 11:14:49 am »
Wow, this guy is amazing. Now he has a book out?. I anticipate that it will be an interesting read for car fanatics. I remember when Lutz became the spokesman for GM. His guarantee that this time GM is back and its products are better than ever. I work in an organization where there is a hierarchy, and i feel that what he is going to say in this book is that GM has too many bureaucratic bs and how things turned sour. How interesting..  8) hmmm....

Offline Scarecrow

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Re: Book Review: Car Guys vs Bean Counters, by Bob Lutz
« Reply #7 on: August 18, 2011, 11:26:16 am »
The more I read Lutz's latest book, the more it reminded me of where I work.  Scary.
"Anyone who drives faster than you is a Maniac,
and anyone who drives slower is an Idiot." - George Carlin

Offline TopGun

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Re: Book Review: Car Guys vs Bean Counters, by Bob Lutz
« Reply #8 on: August 18, 2011, 12:26:08 pm »
It reminds me of many workplaces Scarecrow...very scary indeed!

It's very much a business book for car people.  I really liked reading about how carried away they got with each brand's "characteristics", and the development of the Aztec, SRX, Grand Prix.

He does a good job demonstrating that higher education sometimes makes it harder to solve problems...there is an expectation to complicate things.  You can solve just about any problem using common sense.

Here's a quote he gave on what someone came up with as a mission statement - Creating an enterprise strategy and knowledge development resource to support decision-making of function and operational organizations attempting to achieve enterprise objectives.

Bob's response - "Come again?"

Offline Gardiner Westbound

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Re: Book Review: Car Guys vs Bean Counters, by Bob Lutz
« Reply #9 on: August 18, 2011, 12:52:14 pm »
The Detroit Three focused on pleasing the Wall Street slicksters and fat cat banksters, maximizing executive bonuses and buying off the union bosses – customers not so much. They bean counted the cars to death. Extreme cost and corner cutting produced cheap-assed nasty “crapmobiles” with tinny doors, hard plastic interiors, flimsy switchgear, body metal so thin you could dent it by looking at it hard, and woeful build quality. Mechanical Mean Time to Failure (MTTF) painstakingly value engineered to coincide with warranty expiry made parts and repairs cash cows. Sold as the “real deal,” an entire generation of consumers ran away from American cars.
"When you invent a better mousetrap the mice tend to get smarter." - Willie Gingrich

Offline TopGun

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Re: Book Review: Car Guys vs Bean Counters, by Bob Lutz
« Reply #10 on: August 18, 2011, 02:27:47 pm »
....Sold as the “real deal,” an entire generation of consumers ran away from American cars.

Likely TWO generations!

It's simple to sell your bosses that a cheaper product will sell more volume.  Just wiz-waz them that the margin will stay the same and presto...you've got "shareholder value" created!  It's much harder to sell your bosses that a higher quality, more expensive product might sell less volume...but deliver higher value.

I see Apple as behaving the opposite.  Want a cheap phone or PC...don't buy from us.  Don't like it that our stuff is designed to work with our other Apple stuff and not the generic brands...don't buy from us.

Offline opg210

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Re: Book Review: Car Guys vs Bean Counters, by Bob Lutz
« Reply #11 on: August 18, 2011, 03:20:47 pm »
....Sold as the “real deal,” an entire generation of consumers ran away from American cars.

Likely TWO generations!

It's simple to sell your bosses that a cheaper product will sell more volume.  Just wiz-waz them that the margin will stay the same and presto...you've got "shareholder value" created! 

Too true TopGun. Reflecting what Lutz says about higher education, I have a page copied from a Management Accounting text I used in the late 80s in university. It shows a Cost/Volume/Profit analysis problem: In the example, you make a $50 margin on a washing machine and sell x units per year. By buying a cheaper part, the margin will increase to $80/unit but sales will fall off by y% because of the lower quality. Should you use the cheaper part? The answer was, of course an unequivocal yes.  I still keep that copy handy as a reminder that "advanced education" needs to be taken with a grain of salt sometimes...

Offline northsparrow

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Re: Book Review: Car Guys vs Bean Counters, by Bob Lutz
« Reply #12 on: August 18, 2011, 03:37:46 pm »
Fact Check:

The Toyota Matrix is made in Cambridge, Ontario and the late, lamented Pontiac Vibe was made in Fremont, California.



Offline Weels

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Re: Book Review: Car Guys vs Bean Counters, by Bob Lutz
« Reply #13 on: August 18, 2011, 07:01:44 pm »
C'mon people... nobody has done this yet??

It reminds me of many workplaces Scarecrow...very scary indeed!

It's very much a business book for car people.  I really liked reading about how carried away they got with each brand's "characteristics", and the development of the Aztec, SRX, Grand Prix.

He does a good job demonstrating that higher education sometimes makes it harder to solve problems...there is an expectation to complicate things.
  You can solve just about any problem using common sense.

That has no place in here!!!

Bob's response - "Come again?"


That’s what she said!   
« Last Edit: August 18, 2011, 07:08:02 pm by Weexy »



Offline TopGun

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Re: Book Review: Car Guys vs Bean Counters, by Bob Lutz
« Reply #14 on: August 18, 2011, 07:33:49 pm »
Well done Weexy!

Offline Neromanceres

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Re: Book Review: Car Guys vs Bean Counters, by Bob Lutz
« Reply #15 on: August 19, 2011, 08:18:20 am »
This was an awesome book.  A rare look into the inner workings of the auto industry.  I downloaded it onto my Blackberry Playbook and read it a couple of weeks ago.

Fact Check:

The Toyota Matrix is made in Cambridge, Ontario and the late, lamented Pontiac Vibe was made in Fremont, California.


Another FACT check.  The Matrix was built at both Fremont, California and Cambridge, Ontario.  Like it or not but quality reports have claimed that the cars built in California had fewer issues than the ones built in Cambridge.

Of coarse after GM pulled out of Nuumi Toyota closed the Fremont plant because costs where higher than Cambridge.  Just one more example of Toyota putting money before quality.

Offline TopGun

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Re: Book Review: Car Guys vs Bean Counters, by Bob Lutz
« Reply #16 on: August 19, 2011, 01:45:16 pm »
....

Of coarse after GM pulled out of Nuumi Toyota closed the Fremont plant because costs where higher than Cambridge.  Just one more example of Toyota putting money before quality.

I think Cambridge is a win-win on the cost and quality side for Toyota.

June 23, 2011

CAMBRIDGE, ON - Canadian manufacturing was recognized today when J.D. Power and Associates announced the Toyota Motor Manufacturing Canada Inc. (TMMC) Cambridge South, Ontario plant has earned the Platinum Plant Quality Award for the highest ranked global automotive manufacturing facility in a tie. This year, 121 qualifying manufacturing plants around the world were reviewed.

The 2011 J.D. Power and Associates Platinum Plant Quality Award for manufacturing was a tie. This is the first time that a Toyota plant outside of Japan has been awarded with a Platinum award.

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Re: Book Review: Car Guys vs Bean Counters, by Bob Lutz
« Reply #17 on: August 23, 2011, 12:53:25 pm »
Finally someone from the GM aristocracy admits that the company was rotting out from the inside.

Betcha this book is loaded full of gems like the Aztec comment - so very true.

Offline JohnM

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Re: Book Review: Car Guys vs Bean Counters, by Bob Lutz
« Reply #18 on: August 31, 2011, 09:37:26 am »
I've got the book now and am really enjoying it. 

Amazing rollercoaster ride as Lutz takes many of the issues out of the closet and puts them in plain sight. 

The ups include his take on the media which is spot on and illustrates why a society can't progress if its information system consists of a filter of writers with no expertise in anything and corporate interests unrelated to accurate coverage of the issues.

The downs include the next few paragraphs where he rails against the science of human induced climate change and why would it matter anyway "polar bears on ice flows - hello, they can swim" - just downright painful to read from someone you respect.  He also appears to put up a defense of the SUV.  So from these statements, it might be possible to see even more into American corporate car culture - failure to look around and down the road.

One car executive I spoke with 20 years ago outlined at length the feeling big 3 execs had for small cars.  They hated them on a personal level.  Just no use for them whatsoever.  Hardly the attitude needed to keep up with the trends let alone lead them.

Regardless, this book is an excellent overview and I'd encourage anyone interested in the automotive industry or the decline of western manufacturing capability to buy it.

Cheers,
John M.

 

Offline TopGun

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Re: Book Review: Car Guys vs Bean Counters, by Bob Lutz
« Reply #19 on: August 31, 2011, 12:23:10 pm »
Even than AP, I'd love a chance to ask him how long he thinks they can tread water for.

I think you cam make an SUV and not denounce global warming as a sham as he did/does.

The SUV may be a reality of the market ... That doesn't mean you can't offer an alternative for the other people that want one. LEAf vs. Infiniti FX...Toyota tundra vs. Prius.