GM encourages accessorizing from many sources

CHICAGO — There appears to be plenty of room for everyone in the $34 billion accessories industry, so GM welcomes the aftermarket when it comes to accessorizing its cars and trucks. The exceptions are those items where safety issues are a concern, says Bob Lutz, the automaker's vice chairman of product development.

"We encourage anything that generates interest in our cars and trucks," says Lutz, a speaker at the recent Global Automotive Aftermarket Symposium (GAAS). Nothing is worse than coming up with a vehicle that no one has any interest in accessorizing, he adds.

However, when it comes to tires and wheels, GM holds safety issues in a higher regard because of the rigorous testing involved with these products and the maximum size and weight of tires and wheels allowed for certain vehicles. So the automaker clearly doesn't encourage aftermarket sales of these particular items.

"When it comes to safety items, we take the hard line," Lutz says.

Although GM can't mandate that independent dealers buy from a certain manufacturer, it takes an active role in guiding them toward the better products.

"We just don't want our dealers to sell junk," Lutz says, adding the high-end aftermarket manufacturers are more popular throughout their parts and accessories distribution system.

An easing of fuel prices
Lutz predicts the high fuel prices likely will cool down toward the end of the year, so he doesn't see a significant negative impact in GM's truck and large vehicle sales. Besides, he adds, the gas price issue isn't about the lack of oil; it's the lack of refinery capacity, which is being challenged by current demand.

He sympathizes with oil companies, which are looking for locations for refineries, but no one wants them in natural areas and no one wants them in their neighborhoods, whether inhabited by upper, middle or lower classes.

"Can somebody tell us where we can build a refinery?" he asks.

The current gas spike should only be a seasonal and temporary trend, Lutz predicts. "Long term, I don't think fuel prices will stay at $3 a gallon."

Lutz also takes issue with the increasing fuel economy standards being imposed by the federal government. Speaking for the "whole gang" of automakers, "(a) 30 percent fuel economy increase is not going to happen."

He does believe the industry can squeeze 2 or 3 percent better efficiency out of regular fuel-based engines, but, as a country, the United States should develop a "transformation ratio" toward alternative fuel technologies.

Lutz looks to the automobile of the future and predicts it will look and act a lot like the Chevrolet Volt, a concept car with a rechargeable electric drive system that can be configured to run on gasoline, electricity, ethanol or biodiesel.

He also foresees a vehicle of the future in which the driver can merely punch in the destination and the car will get him or her there, using lane departure warnings, active cruise control, obstacle detection and a number of other safety features converged into one system.