Automotive Icon Departs

From Amorebieta to Detroit: A Meteoric Rise

Born on January 18, 1941, López earned a Doctorate in Industrial Engineering from the University of Bilbao in 1966. He joined General Motors in 1980 to help launch the Figueruelas plant in Zaragoza, where he first tested his radical cost-cutting ideas. By May 1992, GM had promoted him to Global Vice President of Procurement in Detroit. In his first year alone, he saved the company an estimated $1.1 billion, according to La Opinión de Zamora.

His secret weapon was a system called PICOS — Purchased Input Concept Optimization with Suppliers. In plain terms, he sent teams of hand-picked employees, whom he called "Warriors," directly into supplier factories. They reorganized production lines and demanded immediate price cuts of 20 to 30 percent in exchange for long-term contracts. The method was brutal but effective. GM's former CEO Jack Smith once called López his "brother" and praised his work as "a strategy, a team, and a process to achieve cost-reduction," El Correo Web reported.

2 sources

The 1993 Defection That Shook the Auto Industry

On March 15, 1993, López shocked the corporate world. He skipped his own farewell press conference at GM and flew to Germany to join Volkswagen as Vice President. VW Chairman Ferdinand Piëch had lured him away. GM accused López of taking 20 boxes of confidential documents — including ten years of product plans — when he left, according to Levante EMV.

The legal battle that followed lasted years. GM alleged industrial espionage and wire fraud. The U.S. government filed six criminal charges against López by 2000. Under mounting legal pressure, he resigned from VW on November 29, 1996. In January 1997, VW paid GM $100 million in cash and agreed to buy $1 billion in auto parts over seven years to settle the civil case, La Provincia reported.

2 sources

A Near-Fatal Crash Ended His Public Life

On January 8, 1998, López suffered a near-fatal car accident in Burgos, Spain. He fell into a coma for several weeks. The accident left him with permanent amnesia and neurological damage. In 2001, the Spanish Audiencia Nacional blocked his extradition to the United States, citing his poor health. He largely disappeared from public life after that, LNE reported.

1 source

A Legacy That Still Divides the Auto World

Opinions on López remain sharply split. Many analysts credit him with saving GM from collapse in the 1990s. His "Plant X" concept — a modular, hyper-efficient factory — was later built at VW's Resende plant in Brazil and changed how trucks are made globally. His disciple Francisco Javier García Sanz went on to lead VW's task force to resolve the "Dieselgate" scandal, according to Diario Córdoba.

Critics tell a different story. Automotive analyst Maryann Keller once said: "He is a brilliant man who did a lot for GM, but he's not a particularly ethical person." Others argue that squeezing supplier margins so hard eventually hurt VW's quality in the late 1990s. In Amorebieta, however, he is remembered simply as a local boy who reached the top of global industry and never forgot where he came from, El Periódico de Aragón reported.

2 sources