Guts: The Seven Laws of Business That Made Chrysler the World's Hottest Car Company

By Robert A. Lutz

Book Overview

1. The Customer Is Not Always Right. 2. The Primary Purpose of Business Is Not "To Make Money." 3. When Everyone Else Is Doing It, DON'T . 4. Too Much Quality Can Ruin You. 5. Financial Controls Are Bad 6. Disruptive People Are An Asset. 7. Teamwork Isn't Always Good. "Bob Lutz is one of America's most imaginative and most insightful business leaders. He thinks way outside the box, and when he talks, everyone needs to listen."-Michael Hammer, Coauthor, Reengineering the Corporation. "Lutz has made Chrysler into the feistiest, and most profitable, automaker on the planet."-Steve Miller, CEO, Waste Management Inc. "Listening to Lutz is like hearing a Viper engine come to life. It's raw and pure. He loves speed, whether it's related to cars, fighter jets, or change in an organization."-Kent Kresa, Chief Executive Officer Northrop Grumman Corporation. "Bob Lutz knows more about cars than anyone. And he knows more than anyone about fixing car companies . . . but what makes Bob unique is his extraordinary sense of self-confidence-call it guts-which has permitted him always to have fun doing the right thing. So, go get some Guts, and share the fun "-James P. Womack, Author, The Machine That Changed the World, and President, Lean Enterprise Institute. In May 7, 1998 Chrysler Corporation and Germany's Daimler-Benz (owner of Mercedes) shocked the business world by announcing their intention to merge. What led to this largest industrial merger of all time? How did Chrysler-which not too long ago needed government-backed loans in order to survive-transform itself into not just a partner coveted by Daimler (the gold standard of European car makers) but the most profitable car company in the world? And what does their mega-merger portend for consumers, governments, shareholders and workers around the world? In Guts, Robert A. Lutz, the product-development genius and iconoclastic leader behind Chrysler's second renaissance, answers these questions and many, many more. With wit and a surprising frankness, Lutz tells how Chrysler in the early '90s recovered from a second near-death experience to go on and post record profits, emerging as Forbes magazine's "Company of the Year." He credits this remarkable turnaround to Chrysler's having embraced (at his urging) a deliberately "schizophrenic" corporate culture: tough, buttoned-down financial controls coupled with a rock-the-boat, provocative, highly creative product development process. The marriage of these two gave birth to a large family of hit products, starting with the radical, hugely popular Dodge Viper sports car, whose creation Lutz here describes. Along the way, he propounds what he humorously calls "Lutz's Immutable Laws of Business"-seven controversial maxims meant to stand conventional business wisdom on its ear. Guts explains how and why every organization must cultivate a "split personality" combining common sense with freewheeling creativity. It defines the leader's role in maintaining a healthy balance between the two. And it argues that a dynamic tension between them is the prime attribute that enables top-performing companies to introduce new products and achieve record profits. This embracing of opposites is, to say the least, unusual in the corporate world. For Lutz, however, it is business and life-as usual. What else would you expect from a vegetarian who loves a good cigar, a high-achiever who didn't graduate from high school until he was 22, a former Marine fighter pilot whose "Law of Life" is a line from a Rolling Stones song? Add to these paradoxes the fact that Lutz, unlike many of his peers, got into the automobile business because he actually likes cars, and he emerges as the quintessential maverick. Cinderella success story, unorthodox business primer, portrait of an iconoclastic icon, Guts is many books in one, each supplying its own brand of informative, amusing, and entertaining readin

• Format: Hardcover
• Language: English
• ISBN: 0471295612
• ISBN13: 9780471295617
• Release Date: September 1998
• Publisher: John Wiley & Sons Inc
• Length: 240 Pages
• Weight: 1.18 lbs.
• Dimensions: 9.5" x 1.0" x 6.5"

Customer Reviews

A Must-Read!

Former Chrysler president and vice-chairman Robert A. Lutz proves that sometimes a corporate leader can write a terrific book (it just doesn't happen very often). If Lutz ever decides to get out of the corporate arena entirely, he would make a fabulous comedian. Known as a colorful and brilliant leader ever since he turned Chrysler around in the early `90s, he shares the ideas that saved the company as well as others he believes could help any organization succeed. Lutz is direct, holds nothing back and points out the lunacy behind most corporate decisions. We [...] think of him as the Dennis Miller of corporate honchos. He fills his how-to book with plenty of examples from his Chrysler days, making it a provocative page-turner that any businessperson can relish.

This book is a must-read for every executive!

Robert Lutz tells of his almost embarassing past as the oldest person in high school (He graduated at age 22!), and of his success at Chrysler as well as Ford of Europe and BMW. But the real point of this book is to point out what's wrong with American business and modern society and how to fix the problems. Unlike most other books of it's type, GUTS really does provide sensible solutions not from an industry observer, but from an insider who knows how it all works. Written in a humourous and upbeat tone, GUTS should be required reading for all Fortune 500 executives.

THIS COUNTRY NEEDS MORE MEN LIKE BOB LUTZ

As a business major, I am constantly studying the theoretical side of business. It was quite refreshing to read about a guy who challenges some of the old corporate attitudes and pushes for positive change within businesses. "The customer isn't always right," and "disruptive people are an asset," are a couple of his laws which provoked thought and inspiration which contradict the old maxims taught in the business world. I also enjoyed reading about his philosophies regarding where our country's youth is heading, education in America, America as an international player, and the future of business. A definite great read for anybody involved in business or life in general.

The Most Important Man in the Last Twenty Five Years of Cars

As an automotive broadcaster and historian it was my pleasure to write the review of Bob Lutz's book for the October issue of "Car and Driver" magazine. While most people may not be aware of Mr. Lutz's contributions to the industry, those inside of the car business know he has been the most influential individual the car business has offered us in the past twenty five years. In addition, while other's have published their books of "business wisdown" that were full of abstract theories on how to succeed, what Bob Lutz gives the reader to chapter after chapter of his common sense approach to business. Fortunately Lutz's "Rules of Business" don't apply only to the automobile industry. They would apply to any company trying to move themselves forward. In a perfect world every company in America, whether small or large, would buy a copy of Mr. Lutz's book and distribute it to every employee. It is the finest book on corporate wisdown since Robert Townsend's "Up the Organization" over 25 years ago. It is a shame that a talent like Bob Lutz has retired. The automobile industry will miss him and his talents tremendously. Ed Wallace 570 KLIF AM/Car and Driver/Fox News-Dallas/insideautomotive.com

"Guts" is not just another book about the auto industry.

It's been a long time since I have had an overwhelming desire to pick up a yellow marker and highlight paragraph after paragraph in a new book. As I finished the first chapter in "Guts, the Seven Laws of Business that Made Chrysler the World's Hottest Car Company," by Robert A. Lutz, I realized that this was going to be one of those books. Lutz shares his insights in an imaginative way that challenges the reader to ponder the author's comments long after the book has been put aside. This is NOT just a book about the automobile industry; it is a book about common sense--both in business and in life. "Lutz's Laws" can be adapted to every type of business, and will be of enormous help to business owners in every field. I know I will be referring to my marked-up copy for many years to come. Please be sure to put your name in this book, because you will want to share it with your friends and business associates...and they, in turn, will need to share it with their co-workers and friends. Better yet, it will be the perfect holiday gift for your boss, co-workers, and friends in the business world.