Could GM Shut Hummer Down if deal with Tengzhong falls through?

[nadepalma]

Could GM Shut Hummer Down?

The Wall Street Journal notes that there isn't much left of Hummer at GM headquarters. "Because Hummer has been run from Detroit as a division of GM, the brand has had very few employees exclusively devoted to running it. Many of its employees have transferred from assignment to assignment within the GM universe, spending stints at Hummer in addition to other GM brands."

Time reports, "GM, which was considering abandoning Hummer even before its financial meltdown, pulled its advertising in the spring and then shut down a Hummer production line in South Africa. Hummer sales have dropped 64% so far this year, more than any other brand in what overall has been a disastrous year for new-vehicle sales." Ridding itself of the Hummer dealership network might be a costly option for GM, but with sales as slow as they are, it's probably inevitable if the Tengzhong sale falls through. An unidentified "GM Official" told Time "If it doesn't get sold, we'll close it."

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[cgriff]

It doesn't seem like they would be left with much of a choice if the sale falls through. Unless they are able to send any of those vehicles over to GMC; but there would still be no need for the dealer network.

[ILLICEMAN]

I am not up to date on these things but why can,t GM bring Hmmer into another brand.
Produce it on a line they already have and it looks like for little cost could start making money with it.It is certainley a desirerable unit.
Sounds to simple I know.

[cad1cts]

That's the problem with it though. All Hummers we're just warmed up, tricked out GMC's. Very nice trucks that I still love, don't get me wrong, they just used the parts from GMC's bin.

[mgescuro]

Originally Posted by cad1cts

That's the problem with it though. All Hummers we're just warmed up, tricked out GMC's. Very nice trucks that I still love, don't get me wrong, they just used the parts from GMC's bin.

Hummers weren't "warmed up" GMC's. Not even close!!
Escalades are more "warmed up" GMC's than the Hummers ever were!!

[desmo9]

The whole array of brands sold to Chinese and Indian companies like Tengzhong is concerning. Be it Jag or Hummer or, prospectively, Volvo. They really fail to acknowledge that folks buying premium brands aren't naive or carefree enough to overlook such details. Just the perception behind the Asian ownership, even if the management, engineering, and manufacturing remained in its locale, is damaging. Jag's as good as dead. As will be Hummer if this goes through. It'll take a considerable number of Chinese buyers to make it float.

[YupYupYup]

Originally Posted by cad1cts

That's the problem with it though. All Hummers we're just warmed up, tricked out GMC's. Very nice trucks that I still love, don't get me wrong, they just used the parts from GMC's bin.

Do not give it to the Chinese unless you get an amazing price, GM.

Maybe a "HUMMER trim level" for really rugged versions of GMCs? However the HUMMER name has been so villified (maybe not a word, ha, ha!) by the press, even if it hypocritical in many respects.

[mgescuro]

Originally Posted by desmo9

The whole array of brands sold to Chinese and Indian companies like Tengzhong is concerning. Be it Jag or Hummer or, prospectively, Volvo. They really fail to acknowledge that folks buying premium brands aren't naive or carefree enough to overlook such details. Just the perception behind the Asian ownership, even if the management, engineering, and manufacturing remained in its locale, is damaging. Jag's as good as dead. As will be Hummer if this goes through. It'll take a considerable number of Chinese buyers to make it float.

I don't think Jag's as good as dead. Nor is Land Rover.
Part of the reason is that the Indian leadership truly understands the British brands -- for obvious reasons. And Land Rover is really held on a high pedestal as the "ultimate" in luxury by the Indians.

With proper management, I think both brands are going to thrive. And the way their current lineup is situated, they will not have a problem.

Let's see how the tackle the new Jaguar XE. That will be the first new product under Indian leadership.
On the surface, at least initially, it looks like a return to the core of Jaguar's sporting heritage. Time will tell though if XE will really run with the Cayman and 911 -- its spiritual competition.

[rsbaker]

Almost anything is better than letting the Chinese get their hand on it!
I’ve suggested many times bringing H3 and H3T over to GMC. With some cosmetic changes and a more fuel efficient Engine/Transmission combo, it think it could be something different and special for GMC and very successful. They would certainly have to kill H2. GM could use the GMC concept name of a while back the “Terra 4”. If GM gave GMC versions of H3 & H3T, GM could continue to sell them in South Africa, Australia and wherever else they had originally eventually wanted to sell Hummers.

Hummer H3 could become: GMC Terra 4
Hummer H3T could become: GMC Terra 4 XT

I’d love to see a “Jeep Wrangler like” short wheelbase GMC based on the Hummer concept HX too. Jeep should not go unchallenged in that segment

[Jedi]

Originally Posted by mgescuro

Hummers weren't "warmed up" GMC's. Not even close!!
Escalades are more "warmed up" GMC's than the Hummers ever were!!

There ALL warmed up chevys.

[JeffInDFW]

GM should move the HUMMER H3 to GMC, and should go ahead with the development of the Jeep Wrangler sized HUMMER H4 for GMC as well. Kill the H2.

GM having to eat the cost of closing the HUMMER dealers will hurt, but I can't stand the idea of the Chinese getting a free ticket into the US market like this. According to the New York Times, there are 379 HUMMER dealers worldwide. Eat it, shut them down or make them into needed GM franchises for Chevrolet/Cadillac/GMC-Buick.

[Blair1118]

I agree with the comments to fold Hummer into GMC, its a higher end brand than Chevy allowing them to keep the price point, as well as giving GMC some unique products that aren't (blatantly) warmed over Chevy's. Drop the H2 as it is the poster child of anti-environment, do a slight refresh to make the H3 line more GMCish, and bring out the HX. Ohh and drop the Canyon.

[ARCANGEL]

put hummer out of its misery you cant have GMC and hummer occuping the same space different price points or not

[hawaiitahoe]

i certainly hope he deal will fail, the last thing GM needs right now is another competitor selling what GM does best - full size suv/trucks.

Merging hummer into GMC or offering a hummer trim would be very cool.

I agree w/h3t and hx being brought out as GMCs

[kenman923]

I would say move the Hummer to GMC. Don't make it a trim level because it would compete with the Denali.