Having worked during his career at every major automotive manufacturer, Bob Lutz, GM’s vice chair of global product development, has seen it all when it comes to the auto industry’s ups and downs.

And at time when the “Big Three” has been downgraded to the “Detroit Three” by industry critics, Lutz doesn’t seem too nervous about the state of the auto industry today. From his vantage point, GM is in a sweet spot, making vehicles that beg to be accessorized.

“We have to be pleased that we are increasingly producing the types of cars and trucks that the aftermarket deems worthy of accessorizing,” Lutz said. And that slice of the pie is no joke – in the U.S. alone the accessories market is a $34 billion industry.

During his lunchtime presentation today at the 2007 GAAS, Lutz showed attendees just a few of GM’s latest vehicle models and the many accessories consumers can buy to outfit them. The accessories GM makes today for its new cars range from modular cargo management systems, bed covers, tonneau covers and utility racks to special wheels, shocks and improved interior materials.

Moving away from the accessories market, Lutz turned his discussion to the future of the automobile. GM’s strategy for the future, he said, will focus on transforming the automobile by decreasing the reliance on petroleum. As the world’s largest producer of flex-fuel vehicles, GM plans to focus on diverse energy alternatives, rather focusing on a single solution, Lutz said. Those solutions will include IC engine and transmission improvements, hybrid electric vehicles and fuel cell electric vehicles.

“We will see increased demand for functional items that improve propulsion efficiency or fuel economy,” Lutz predicted.