Even Hummer Cannot Ignore Gas Prices

[nsap]

By Rick Kranz
Automotive News / July 05, 2004




The 2005 H2 SUT gives the Hummer line a boost this summer.


MOAB, Utah -- Hummer's message for the remainder of the year will be an unlikely one for the maker of big, thirsty SUVs: fuel economy improvements.

Hummer sales dropped 26.4 percent in the first five months of this year as gasoline prices spiked.

The Hummer H2 ranges from 10 to 13 mpg, according to dealers. The federal government does not give the H2 a fuel economy rating because the SUV's weight is above the 8,500-pound cutoff.

At $2 per gallon, a complete 32-gallon fill-up costs $64.

"We definitely have a concern about gas prices," said Mike DiGiovanni, Hummer marketing general manager. "We are going to be looking at improving fuel economy.

"I think it is silly to put your head in the sand," DiGiovanni said. "You should address the issues head-on. So we are looking at improved gasoline engines, diesel engines" and hybrids.

High gasoline prices are probably not entirely to blame for the sales decline of the H2, which went on sale in June 2002. Distinctive, niche vehicles, such as the Volkswagen New Beetle, often fade after the initial rush.

Hummer eyes hybrid

While changes to the H2's styling are two or three years away, the line receives a boost this summer with the introduction of the 2005 Hummer H2 SUT. The four-door vehicle features a small pickup bed behind the rear seat. Shipments to dealers started last month.

To increase fuel economy, Hummer plans within a year to:



Tweak the H2's powertrain for modest fuel economy improvements.


Introduce the H3, a smaller vehicle that will be equipped with a five-cylinder engine.


Offer the 6.0-liter Duramax V-8 diesel engine in the H1. The SUV is powered by a 6.5-liter turbodiesel V-8.

More significant fuel economy changes are scheduled for the H2 around the 2007 or 2008 model year when a diesel and possibly a hybrid-electric engine will be offered.

The H2 will be re-engineered and its front end will be lengthened to accommodate a diesel engine, Hummer sources said. The exterior will be restyled to improve fuel economy.

No compromises

Hummer's image and fuel economy are expected to get a boost with the introduction next year of a smaller SUV, the H3, which will share some parts with the 2004 Chevrolet Colorado pickup.

The H3 will be equipped with GM's 3.5-liter inline five-cylinder engine. A 220-hp version of that engine is available in the Colorado. It has an EPA rating of 18 mpg in the city and 23 mpg on the highway with an automatic transmission.

Full Article Here

[giagastormer]

If you can afford a $55,000 SUV, I dont think gas prices should be too much of a problem. The only issue I see here is having to fill up your gas tank every other day.

[darryl32v]

Being able to afford it or not. I have a friend who owns one and it was costing him $500.00 big ones a month in gas. That rediculous.

[awalbert88]

Originally posted by darryl32v@Jul 6 2004, 10:09 AM
Being able to afford it or not. I have a friend who owns one and it was costing him $500.00 big ones a month in gas. That rediculous.

Rediculous? No, I'm sorry, but $500 a month in gas is not as rediculous as buying such a vehicle in the first place. Your "friend" is obviously driving that thing entirely too much. At 10mpg and $2.50/gal (the highest price likely being paid), he's driving it 2000 miles a month. If he knew going into this purchase that he'd be driving that much, he either didn't care about fuel prices or just didn't think it all the way through.

The Hummer name is no longer synonymous with bad-*** off-roading for most Americans. It now conjurs up the image of the H2, an over-sized gas-guzzling SUV. It doesn't matter if the H2 is a great off-roading vehicle or not, because it was advertised as if it were a new Toyota car.

[black'94prix]

doesn't he mean 6.6L DURAMAX instead of 6.0l or did I miss something

[banzai79]

Why they didn't initially offer the H2 with the Duramax is a complete mystery. Usually I give GM the benefit of the doubt but this was really a boner-move.

[karhopper]

I remember on the show Trucks, they had the H2 concept and the host said that there was a rumor that the Duramax was gonna be offered. I guess GM did change there mind, or there isn't a big demand from there customers.

[SUPERBADD75]

The Hummer name is no longer synonymous with bad-*** off-roading for most Americans. It now conjurs up the image of the H2, an over-sized gas-guzzling SUV. It doesn't matter if the H2 is a great off-roading vehicle or not, because it was advertised as if it were a new Toyota car.

first of all, how was it marketed as a Toyota car? it was marketed as what it is... a killer off road truck. secondly, the reason its sales are slumping is because the newness has worn off. it's not the new hip thing anymore, it's out there to compete with every other SUV in its price range. sales at our dealership are pretty good, and regardless of what you think, it's probably selling like it should now.

Why they didn't initially offer the H2 with the Duramax is a complete mystery. Usually I give GM the benefit of the doubt but this was really a boner-move.

the reason we're told the duramax wasn't offered in the first place is that it won't fit as it is. the H2 hasn't got a lot of room up front there, and the hood slopes quite a bit, so it couldn't fit in the engine bay. they are working on something, but the 6.0L gas engine is the best fit right now.

[FoMoCo Fan]

Originally posted by SUPERBADD75@Jul 7 2004, 05:44 AM
first of all, how was it marketed as a Toyota car? it was marketed as what it is... a killer off road truck. secondly, the reason its sales are slumping is because the newness has worn off. it's not the new hip thing anymore, it's out there to compete with every other SUV in its price range. sales at our dealership are pretty good, and regardless of what you think, it's probably selling like it should now.

Also, a redesign of the front end to make it more aerodynamic? An aerodynamic Hummer? Oxymoron anyone? The whole point with the H2 is that it looks like the most un-aerodynamic thing on the road today!

Yeah, Regis and Alessandra Ambrosio (sp?) (the Brazilian supermodel they use in the commercials) yes, very much in keeping with their "off road" marketing campaign. Very rugged types, the kind you'll meet on the Rubicon? Hah! They've marketed it as a status symbol, the bling bling thing. If you want to go off road, you're going to get an old CJ Jeep and go for it. Now, if you want to cruise the boulevard, that's what they're selling the H2 for.