Monday, March 2, 2009

GM Needs Global Aid in Worst Auto Market Since 1945, Lutz Says

General Motors Corp., surviving with U.S. federal loans, needs government help worldwide to get through the worst automotive market since the end of World War II, Vice Chairman Robert Lutz said.

The slump is forcing GM to undergo changes it has needed to make for years, such as reviewing the future of its Hummer, Saab and Saturn brands, Lutz said today in a Bloomberg television interview from Geneva. Lutz, who rejoined GM in 2001 to help revitalize its auto designs, will retire at the end of this year.

“We will go through a rough spot as will every other automobile company,” said Lutz, 77. “We will get through and come out the other end stronger and more competitive than ever before.”

GM has received $13.4 billion in U.S. aid and is seeking more to keep its operations in its home market running through this month. The Detroit-based company last week said it will need help in Germany and other countries to restructure its European operations, with the focus on the Opel brand.

The largest U.S. automaker would like to maintain “technical and operational” control of Opel as it seeks 3.3 billion euros ($4.2 billion) in aid from Europe and $1.2 billion in cost cuts, Lutz said.

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