After service in the German Imperial Army in World War I, he was retained in the Reichswehr, in which he attained the rank of oberstleutnant in 1923 and oberst in 1928.

[2] Lutz continued to oversee the motorization of the army and was promoted to generalleutnant on 1 February 1933.

Guderian's replacement, Friedrich Paulus, was not effective and the momentum of the development of the Panzerwaffe slowed as Lutz was much less energetic.

[2] Lutz was retired from active duty in February 1938 after falling from Adolf Hitler's favour.

[3] During World War II he was recalled to service and appointed on 22 September 1941 to head a minor special staff unit before being retired again on 31 May 1942.