GM: Live Green or Die

In April of 2005, General Motors (GM) Chairman and Chief Executive G. Richard Wagoner Jr. convened his management team for a monthly strategy session. Held in the boardroom at GM's Detroit headquarters, these meetings can last a day as 20 or so executives mull plans for new cars and product strategies. Meetings often kick off with a roundtable format, and attendees are encouraged to pose new ideas and stray from the agenda. That's when Vice-Chairman Robert A. Lutz spoke up. Lutz, whose gravelly pronouncements routinely enliven auto shows and generate headlines, has a certain genius for challenging conventional wisdom. Maybe, he told GM's brain trust, it was time to build another electric car—one that would use a giant version of the lithium ion batteries that power cell phones and laptops.

It was a provocative suggestion—and Lutz knew it. Two years earlier, General Motors had killed its experimental EV1 electric car and set off a public relations furor. The environmental lobby was deaf to GM's assertions that the EV1, leased to a limited number of people but not sold, would never have earned its maker any money. And the greens accused GM of pulling the plug to show policymakers that such techno wonders were bad business.