GM's Lutz: No 'Sacrificial Lambs' In Bailout

General Motors vice chairman and auto industry veteran Robert Lutz says saving America's auto industry must be a joint effort, and he thinks GM chief executive Richard Wagoner, Jr., should not be made a "sacrificial lamb" in the process.

Lutz was responding to weekend calls, notably from Sen. Christopher Dodd, for Wagoner to resign. Dodd said management changes have to be part of conditions for a bailout to help the companies restructure.

Dodd is chairman of the Senate's Banking Committee and a key architect of the bailout legislation being crafted in Congress. During a Sunday appearance on CBS's "Face the Nation" he suggested that GM and Chrysler should probably merge.

"I think it's clear GM is in the worst shape. Chrysler is, I think, basically gone," Dodd said Sunday as Democrats and the White House continued negotiations on terms for a $15 billion bailout of the distressed industry.

"All I know is that there's going to be sacrifice required from all parties," Lutz said in an interview on CNBC.  "All stakeholders are going to have to give something, otherwise, this isn't going to work."

That said, he's encouraged about a government rescue effort, but he's sensitive about what it's called.

"We're guardedly optimistic that short-term loans will be available," he said.  "I sort of object to the phrase, 'bailout.' Frankly, everybody uses it, but it makes it sound like it's money that's transferred one way and will never come back, whereas what we're really talking about is loans." (See his full comments in the video)

Lutz stressed that the dire situation facing the carmakers is not just a domestic one.

"The Japanese are off 30 and 40 percent, the German producers are off 40 and 50 percent," he said.  "We're just the tip of the iceberg of the automobile industry."

He also countered criticism of Wagoner.

"He is without doubt the best CEO I've ever worked for," he said.  "He has made enormous transformations at General Motors in his tenure."

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