Bloomberg: GM Heals as Toyota ‘God-Like Status’ Wanes, Lutz Says

[Omaha Steve]

http://www.businessweek.com/news/2010-03-31/gm-heals-as-toyota-god-like-status-wanes-lutz-says-update1-.html

March 31, 2010, 11:12 PM EDT

By Keith Naughton

April 1 (Bloomberg) -- General Motors Co. is poised to regain momentum as Toyota Motor Corp. suffers permanent damage to its reputation from worldwide recalls of more than 8 million vehicles, GM Vice Chairman Bob Lutz said.

“We are well ahead of plan and growingly so,” Lutz, 78, said yesterday in an interview at the New York auto show. “Toyota’s God-like status will never be reclaimed.”

GM and Toyota both said they will report U.S. sales gains today for March, when they boosted customer incentives. Toyota’s U.S. sales, including its Lexus and Scion brands, fell 12 percent through February after recalls to fix defects linked to unintended acceleration. GM’s sales rose 13 percent.

Lutz, retiring May 1 after a 47-year automotive career, has long admired and antagonized Toyota, which surpassed GM as the world’s largest automaker in 2008. Lutz said while he respects Toyota’s quality and manufacturing techniques, the Japanese automaker became too revered.

“Toyota was put on an illuminated plinth, 100 feet high,” Lutz said. “From now on, they’ll be down on the floor slugging it out with the rest of us.”

GM is improving cash flow and profitability faster than projected as new models such as the Chevrolet Equinox small sport-utility vehicle produce higher margins, Lutz said. Detroit-based GM’s reorganization in a government-funded bankruptcy last year substantially lowered its costs, he said.

FULL story at link.

[Atman]

1. I rented a Chevy crossover in February...it was an excellent car.

I posted this back then, and it caused a flame war of sorts -- on DU as well as our cousins. But the Chevy Equinox we rented while on vacation was a shockingly nice vehicle. Shocking, because I am one of those who was turned off by American cars. But the Equinox blew me away. Fit, finish, features, ride, everything about this thing was near perfect (okay, minor caveat -- I would have liked larger cargo space not encroached upon by the rear tire wells). And this is the lower-end crossover in Chevy's line. As I said back then, if this is what GM is producing now, if I were in the market for a new car, I'd give it serious consideration. I've never been in any Japanese or Korean car in the same class that was as nice as the Equiniox. And my Infitini SUV-driving friend agreed...but said she'd still never buy an American car.

.

[Omaha Steve]

4. Marta got an 09 Equinox last May

She has no want for any other vehicle. She loves it. The plant in Canada can't keep up on orders for them. It is running at full capacity 24/7.

[Dr Morbius]

2. Toyota is currently offering deals

...of 60 months interest-free financing or Camry leases at $179.

A year ago, you'd have to get your shoes shined to get a Toyota dealer to talk to you. Now, they're almost giving the cars away.

I don't want one. I want a Mustang. Have wanted one for years, and they just get sweeter.

[nadinbrzezinski]

3. We know we need to replace our 18 year old truck

we did give the Escape from FORD a serious look over. We want a hybrid.

The only thing that left me holding the no go was the price. We probably will go for a Honda Insight, different class of vehicle and all that, I know... and just RENT a larger vehicle for convention time.

We are looking at Hybrids, and of course I will have to see what else is in the Hybrid department

Oh and yes we did look at the Prius, and I mean the look part. I don't think I'd get that one right now even if they gave it to me. Plus it was overpriced. (IMO)