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Hummer on the Block

September 3, 2008 by Tom Williams 6 Comments

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. 
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It’s official: Ford announces sale of Land Rover & Jaguar to Tata

March 26, 2008 by Gary Grant 2 Comments

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Ford has released details of the impending sale of their premium British brands to Indian automaker Tata. The short story is a closing date by the end of next quarter and a paltry $2.3 Billion US.

The long story of course is still in the crystal ball stage. There is little question that this sale will have a dramatic effect on the Indian car market. How much effect will it have on the North American market remains to be seen, but Tata will now have an established dealer network on our shores. Could we see a new economy brand on this continent over the coming years? Only time will tell.

Full details from Ford after the break
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Tata set to become a household name in North America?

January 30, 2008 by Gary Grant 1 Comment

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Regular readers know that I rarely comment on the business side of the auto industry. It’s just not my thing. Over the past few weeks though, the Carnival of Wheels has received an increasing number of submissions from Indian bloggers since the Tata company announced their $2,500 Nano.

Who would have thought that the manufacturer of throw away cars would also take on two of the worlds’ top luxury brands? That’s right, Tata Motors is about to buy Jaguar and Land Rover from Ford, lock stock & barrel.

The auto media, both new and traditional, have been full of news & speculation about Tata in the past months. With the impending purchase of two significant brands, how long will it be before we see Indian cars on our continent?

Reuters article after the break
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No Nano in North America

January 29, 2008 by Mike Strong 3 Comments

GM’s Product Czar Bob Lutz told the media who had surrounded him like overly polite sharks looking at a meal that the likelihood that GM would produce a $2,500 car is highly unlikely.

Tata Motors’ new Nano is basically a step above a moped, which is what many folks in India are carting their families around on right now. He also noted he’d like to see which version of the Nano is available for that price, suggesting that the version that was rolled out for the media was going to be $2,500.

He also noted that GM’s Wooling Motors venture in China has been turning out $2,500 minivans and other small commercial vehicles for several years now and that it was ultimately not that big a deal.

Finally, Lutz reminded everyone that in order to develop a $2,500 vehicle for the North American market, there would need to be a demand for a $2,500 new car…or even a $6,000 new car for that matter.

“You can get a seven- or eight-year-old Taurus with 60,000 or 70,000 miles on it for about that much money and will have a lot of miles left on it,” he said after a speech during the Automotive News World Congress in Detroit last week.

Ultimately Lutz reminded us all that basically the way to meet the needs of consumers while achieving government-mandated requirements is not a moped on steroids, but working on a variety of new technologies simultaneously to figure out how best to make everyone happy.

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Carnival of Wheels: Edition #54

January 13, 2008 by Gary Grant 3 Comments

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Another week has come and gone here in The Garage and that means another Sunday morning sifting through submissions for the Carnival of Wheels. It is interesting to note that 4 out of 5 of this week’s submissions are on the same topic. Obviously the auto industry has some big changes coming and a lot of bloggers are interested. First off, let’s head to one of our long time contributors.

Brian Vermette from RaceDriven is getting all in a tizzy waiting for the 2008 Barrett-Jackson auction to start next week. I must admit that it is exciting watching all the characters have at each other over a hot ride, not to mention the bidder helpers. Who’s gonna win, will it be the hottie or the screamer? What is going to bring the most outrageous number when the dust settles? Will it be Carroll Shelby’s GT500 convertible, or John Schneider’s General Lee? We’ll just have to tune in and watch for ourselves.

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Tata Toy

January 11, 2008 by Jeff Bressler 3 Comments

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Well, the moment we have all been waiting for. Tata yesterday officially released there “Peoples Car”, the Nano. At $2,500 this “gadget” is barely highway worthy with a 625cc engine. My personal opinion – a car created to create media hype for Tata, not the car of the masses they are promoting, although some of the hype does seem to have other automotive suits worried that they are lagging behind in the toy business.

I know we have some visitors who open the Garage door in India, what’s your opinion?
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How low can you go?

December 19, 2007 by Jeff Bressler Leave a Comment

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How about a disposable car?

Tata Motors, India’s third-biggest auto marker, will showcase its $2,500 car at the Auto Expo in New Delhi on Jan. 10, with a commercial launch planned for later in 2008.

With that price, you could change cars every season and still have money for a Big Mac or two.
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