General Motors announced Monday, February 9 that former Chrysler Corp president Bob Lutz, hired by GM to lead a product revival, will retire at year's end.

Lutz, 79, has served as the vice chairman of global product development. As of April 1, he will become vice chairman and senior adviser and will continue to report to CEO Rick Wagoner.

Tom Stephens, 60, GM's global powertrain chief, will replace Lutz and will report to COO Fritz Henderson. Stephens will retain responsibility to maintain global quality when he assumes his new position.

In recent months Lutz has been at the forefront of GM's development of the electric hybrid, the Chevrolet Volt, that purports to have a range of 40 miles on electric power only. Set to appear in showrooms late in 2010, the Volt is intended as a direct competitor to the venerable Toyota Prius, the leader in the hybrid genre.

Toyota is debuting its 2010 Prius at a price of $30,000 and it is not yet known if the Volt will be able to compete at that price point due to its use of expensive lithium ion batteries. If the car does succeed, however, it will be considered one of Lutz' greatest legacies at the company.

Currently, however, Lutz is leaving a GM hard hit by the downturn in the American automotive industry. GM staved off bankruptcy only by seeking $13.4 billion in federal loans and must prove its future viability to the government by February 17 to keep those funds.