Following a report from Jalopnik, Autonews reports that GM is trying to unload Hummer-fast. Autonews quotes GM COO Fritz Henderson, during a visit to India, that he hopes for a sale by the end of this year, or early 2009. Claiming that there are several companies interested in Hummer, Henderson declined to mention any by name.
This news should hardly come as a surprise. Hummer’s downward spiral in sales has been well documented, and rumors have been flying that GM hoped to unload the brand. I concur with Jalopnik here; why the news broke from India is not quite clear.
I am no Hummer expert, but some research on Wikipedia shows some interesting facts-Hummer has 300 dealers, but just 174 in the US. Hummers are also produced in South Africa and Russia. My guess is that Hummer will likely be sold, but I am very skeptical that the buyer will be an American company. I would not hold it past GM to halt production altogether while it waits for a better offer if one does not come sooner than later.
Though few will disagree that Hummer ownership was, and is, the equivalent of sticking your middle finger to Mother Earth, even the most brazen product planner in the division had to wonder just how far the brand could be taken. The H1, a thinly disguised military HUMVEE for public consumption established AM General, and GM bought the rights to market and sell it as a Hummer. A toy for the wealthy, GM brought the brutish appeal of the H1 to a slightly more usable product in the H2.
The H1 only sold in modest numbers due to its size and cost, but the H2 was initially a home run for Hummer. Not cheap, but within reach of the upper-middle class, the car was instantly a status symbol for anyone who wanted to drive what looked like a TONKA truck. And at the time, gas was still relatively affordable enough that it was OK if all you ever used your H2 for was a trip to the mall and back.
GM, hungry to broaden Hummer’s appeal, and not being known when to stop, rolled out the H3. Built on the Chevy Colorado pick-up chassis, and saddled with a wheezy 5-cylinder engine, the H3 was destined to fail to live up to the promise of the Hummer name, despite its decent off-road prowess. For the same price, buyers had a tough time saying “no” to Explorer’s and Cherokee’s with V-8’s featuring more power, better ingress/egress, and better handling.
GM promoted Hummer heavily through leasing. I wonder if after 24, 36, or 48 months the novelty of this unique looking truck just wore off on those who were lured in to the showrooms initially. The fuel economy is plain awful. They are not enjoyable to drive on public roads. You know some of your neighbors hate you just by having one in your driveway. Yet, it should come as no surprise that GM hung its hat on Hummer’s continued success, thinking that cheap gas and good times would never come to and end…Hold on a sec, didn’t GM get into serious trouble before when they were bent on that mentality?






6 comments ↓
They should include the Vette in a two for one deal. LOL.
SUV’s are lifestyle vehicles with a specific shelf life, the exception being Jeep, and Hummer has tried to emulate Jeep and probably motivated Chrysler to pay closer attention to Jeep.
The lease deals is what moves the SUV/CUV iron…
The H3 is comparable to the 4 door Jeep TJ, the Toyota FJ its directed at the folks that appreciate the “industrial look” in SUV/CUV’s.
SUV’s being lifestyle vehicles, gargantuan SUV’s with V8 are not reflective of the current lifestyle…and pricing of oil.
Its easy to put Hummer on the market/auction block possibly a different story coming up with a buyer.
One likely prospect would be Mahindra & Mahindra who is postponing the launch of their vehicles in the US, and Hummer would give them an “instant dealer network” for their product in the US market.
I wonder if Hummer might be a good prospect for Tata? With their recent acquisition of Jaguar / Landrover, they have an existing dealer network and it might give them a stronger foothold in the US.
Think back to childhood, when Santa Claus rescued all the unwanted toys from the Island of Misfit Toys.
Perhaps Tata is the new Santa!
Mahindra had an interest in Hummer, and backed out, and they made that news public-it is why I did not mention them as a suitor. Tata, I’m sure, is an alternative. Word is, the intro of the Nano has been delayed indefinitely due to problems surrounding the plant. This may not be the ideal time for Tata to make another acquisition.
Mahindra did say they are no longer interested in Hummer, must be a coincidence that they are delaying the launch of their vehicles in the US.
One would speculate that Tata have their hands quite full with Jaguar and Land Rover in the US market. Would Hummer present an opportunity or a distraction to Tata.
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