SHERIDAN, WYOMING – Jan. 22, 2025 – Bob Lutz, a name synonymous with high-performance cars and a passion for driving, left an indelible mark on BMW during his tenure as the company's sales chief. His story is one of bold decisions, corporate intrigue, and a relentless pursuit of creating the "Ultimate Driving Machine."
A Car Guy with a Business Mind
Lutz, a Swiss-born American, brought a unique blend of passion and business acumen to BMW. His love for cars was undeniable, but he also possessed a sharp mind, honed by an MBA from the University of California-Berkeley and his experience as a jet pilot in the US Marine Corps Reserve.
Before joining BMW, Lutz had already made a name for himself at Adam Opel AG, General Motors' German subsidiary. He rose through the ranks to become a board member, showcasing his leadership and strategic thinking.
Shaking Up the Status Quo
In 1972, at the age of 39, Lutz took the helm of BMW's sales and marketing division. He immediately set his sights on modernizing the company's global distribution system, which he saw as outdated and inefficient.
"In Germany, we were distributing cars directly to dealers, but we still had private importers and distributors in every major European country,” Lutz recalled in 2015. “The big distributors like Thodorof in France and Luigi Sodi in Italy got a distributor price way below the German dealer price, and since many of them had their own retail operations they had another margin. I showed von Kuenheim the profit and loss statements of the six largest European distributors, and their profit on 35,000 cars was higher than BMW AG’s for selling 200,000 cars.”
Lutz, with the support of BMW chairman Eberhard von Kuenheim, swiftly replaced these independent distributors with wholly-owned sales subsidiaries in France, Belgium, and Italy. This move streamlined operations and increased BMW's control over its brand and sales.
The Hoffman Saga
In the United States, Lutz faced a different challenge: Max Hoffman. This powerful distributor had a long and complicated history with BMW, marked by both success and controversy.
Hoffman had been instrumental in introducing BMW to the American market in the 1950s, but his relationship with the company had soured due to contractual disputes and financial irregularities. Despite this, Hoffman retained control of BMW's US distribution network through a series of questionable contracts negotiated by a corrupt former sales chief.
Lutz recognized the need to bring the US market under BMW's direct control, but Hoffman was not willing to relinquish his lucrative position without a fight. He reportedly offered Lutz bribes and even veiled threats to maintain his grip on the distributorship.
"Maxie offered me a substantial amount of money if I would stop trying to take the distributorship away from him,” Lutz said. He recalled Hoffman asking, “‘How much money do you make? You’re a nice young man. You’re very smart. I want to see you do well. I don’t think they’re paying you enough.’ I said, ‘Believe me, Maxie, I’m very satisfied with my financial arrangements.’ He said, ‘Ah, but I could make you so rich! If you’d cooperate with me, I could make you so rich!’ ‘I don’t want to hear it, Maxie.’”
Lutz, however, remained undeterred. He meticulously documented Hoffman's shortcomings, including his failure to meet sales targets, his refusal to import popular models like the 1602 and the Touring, and his resistance to providing adequate customer service.
A Legal Battle and a New Era
In 1974, armed with compelling evidence, BMW terminated its contract with Hoffman, citing "serious commercial reasons." A protracted legal battle ensued, but ultimately BMW prevailed, establishing BMW of North America as its official US importer.
This victory marked a turning point for BMW in the US market. With direct control over sales and distribution, the company was able to expand its reach, improve customer service, and solidify its position as a leading luxury car brand.
Lutz's Legacy
Bob Lutz's impact on BMW extended beyond his restructuring of the company's global sales network. He also championed the development of iconic performance cars like the 2002 turbo and 3.0 CSL, and he founded BMW Motorsport, re-establishing the company's presence in motorsports.
Lutz's legacy at BMW is one of innovation, determination, and a commitment to the "Ultimate Driving Machine." His story serves as a reminder that even in the corporate world, passion and integrity can drive success.