Quote:
Originally Posted by mgescuro
Any MBA can see the situation clearly and determine the necessary steps here.
Do a proper market sizing of HUMMER's core market. Not just "SUV's," but fully off-road capable SUV's. Also, don't take into account the NA market, but the worldwide market.
If the market is sufficient enough to support a niche product like HUMMER, then determine the proper product mix for HUMMER to make it successful.
The problem is, there is absolutely nothing wrong with HUMMER!!!!!
The issue is the fact that GM is missing the target market, and HUMMER has been slow to get product to market. (Still waiting for the H3T... tick tock...).
GM remains cluess on how to manage a niche brand.
By leveraging HUMMER's strengths in off-roading, plus the rugged image it holds, there's no reason why GM couldn't hold onto HUMMER as a niche brand. In fact, GM can easily penetrate markets that are dominated by Land Rover in global markets.
But what GM see is "Big SUV" and "gas guzzling."
They don't see the forest from the trees.
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I was thinking the same thing Marc, but I'm kind of wondering if they are pushing for a sale because GM doesn't have any future platforms to support some of these products to keep Hummer a viable brand?
We already know that GM is looking at putting some of their larger products on smaller platforms - and possibly switch some from BOF to Unibody platforms. This could be trouble for Hummer.
We also know that the larger platforms will hold off on a refresh/update for some time and that some of the current "smaller platforms" (the Trailblazer) are outdated and going bye-bye - without a direct replacement (i.e. the TrailBlazer will be replaced by a unibody/FWD Lambda product, etc).
Since Hummer only sells about 76,000 units a year (and the brand may not expand a whole lot in some markets like North America b/c of gasoline prices), is this worth producing a "unique" platform for one brand at such low volume?
GM may be looking at it from this kind of logistical angles. As CAFE rules rise, GM may be less inclinded to pour money into some of these platforms. And as they rise, bigger products like the H2 may die (as has been rumored) and products below the H3 may be needed to keep the brand viable. Since no small/BOF products are coming on which sub-H3 products could be based, maybe this is their way of letting us know that GM wont support these kinds of platforms across other brands in the future?
Any smaller SUV/Crossover that we've heard about are based on smaller/lighter/FWD/unibody platforms (the possible sub-theta small-SUVs based on either DeltaII or Gamma, etc) and wouldn't suit Hummer at all. That would imply that GM to either make some of these products off a unibody platform or make some FWD based --- Either measure would possibly kill Hummer's brand image.
Yes, they could move to a Unibody product - Land Rover Ranger Rover is like this and the new Jeep Cherokee is as well - but IDK of any RWD/Unibody product GM is producing that would allow for such a set up. Already the only large/unibody/SUV-like product (the SRX) is getting axed.
Its true that the LR2/Freelander 2 is a unibody FWD product (based on a FoMoCo platform shared with Volvo), but would GM pour the kind of money needed into a unibody/FWD platform to make it worth of the Hummer label?
Just think this could be a possible reason we are seeing this happen....my two cents.