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October 31, 2007
MEMPHIS, Tenn. -- With its reputation on the mend, sales of new cars and crossovers exceeding expectations, and a new labor deal projected to cut billions from its annual costs, General Motors is in its best situation in decades, Vice Chairman Bob Lutz said Tuesday, according to the Detroit Free Press.
In a wide-ranging interview with the Free Press, Lutz said he wants to make up to 100,000 fuel-efficient Chevrolet Volts in the first year of production. The first batteries were delivered Tuesday, he said.
He also said that the new UAW contract provides a big boost to GM, as well as rivals Chrysler, which also has a new contract ratified with the UAW, and Ford, which is in the midst of negotiations.
"The labor cost gap to the Japanese transplants have been narrowed, but they have not been closed," by the new UAW contract, Lutz said. "It's closer than it ever was before. That's good for a five-minute celebration, but then you say, 'Well, now what?' "
The big fear now, Lutz said, is "ill-conceived" government-imposed fuel economy standards at the state or federal level.
Posted by Peter C. T. Elsworth 
at 9:53 AM to GM
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