GM Hires Citibank to help conduct HUMMER strategic review

[steverino]

Great arguments for and against, unfortunately GM needs CASH more than HUMMER

[mgescuro]

Originally Posted by Hummer Guy

Good point -- here's another article that articulates HUMMER's marketing downfall pretty well: http://www.neurosciencemarketing.com...n-branding.htm

AND THAT'S ANOTHER THING!!!
The HUMMER Brand is sooooooo powerful!!!!

What other GM car out there is so recognizable and so defined in its purpose??

We don't see Land Rover backing down, do we? We don't see them trying to build cars or something. WE see them staying true to who they are and reducing overall vehicle weight by 5-600 lbs by going all aluminum.
Sure, it's a costly proposition, but people who buy Range Rovers aren't exactly the poorest people in the world either -- especially with an average income of nearly $500,000.

There is absolutely nothing with a fully off-road capable truck and SUV company!!!!

If the enviros have chosen HUMMER to be their whipping boy. Fine.
That doesn't mean it changes the purpose or direction of the brand. You just build HUMMERS better. You drop in Bio-Diesel engines. I"m sure Saab has a couple tricks up its sleeves in that regard. Diesel Hybrids too!! GM makes diesel hybrid powertrains for buses. The knowledgebase is within GM!! I mean, that even satisfies GM's annoying NIH Syndrome for crying out loud!!!

Selling HUMMER to another company is quite dangerous. It means, there is actually a company out there willing to take on HUMMER's "perceived" anti-environmental image. It also means that this other company knows how to manage a brand. It also means this other company will take on one of the most recognizable and powerful brands in the auto industry.

HUMMER can challenge Jeep for off-road dominance, if managed correctly managed. I firmly believe that.

[Kennyboy]

Talk about bad timing. A weak economy, a recession, rising unemployment, and a weak dollar have all translated into bad timing for GM. With less disposable income for consumers, I wonder if GM can even afford to finance a review with Citibank?

[PontiacBixler]

Originally Posted by ejfx

Have you ever seen the movie Office Space, when the company brings in these people that evaluate every department to find out weak spots / overlap to save the company money...And then they give out pink slips

Thats what this is...Unfortunatly I just cant see GM keeping Hummer

Hopefully they will integrate the brand with Chevy, GMC or maybe even Saturn.

Saturn...hmmm

Consultants.... the bane of the corporate world.

Unfortunately, CEOs think that they have to hire someone to tell them what they already know and then pay them an ungodly amount of money that they could have put towards the issue at hand.

Here's the ultimate joke regarding this topic:

A shepherd was herding his flock in a remote pasture when suddenly a brand-new BMW advanced out of the dust cloud towards him. The driver, a young man in a Broni suit, Gucci shoes, Ray Ban sunglasses and YSL tie, leaned out the window and asked the shepherd... "If I tell you exactly how many sheep you have in your flock, will you give me one?" The shepherd looked at the man, obviously a yuppie, then looked at his peacefully grazing flock and calmly answered "sure".

The yuppie parked his car, whipped out his IBM ThinkPad and connected it to a cell phone, then he surfed to a NASA page on the internet where he called up a GPS satellite navigation system, scanned the area, and then opened up a database and an Excel spreadsheet with complex formulas. He sent an email on his Blackberry and, after a few minutes, received a response. Finally, he prints out a 130-page report on his miniaturized printer then turns to the shepherd and says, "You have exactly 1586 sheep. "That is correct; take one of the sheep." said the shepherd. He watches the young man select one of the animals and bundle it into his car.

Then the shepherd says: "If I can tell you exactly what your business is, will you give me back my animal?", "OK, why not." answered the young man. "Clearly, you are a consultant." said the shepherd. "That's correct." says the yuppie, "but how did you guess that?" "No guessing required." answers the shepherd.

"You turned up here although nobody called you. You want to get paid for an answer I already knew, to a question I never asked, and you don't know crap about my business...... Now give me back my dog!"

[babyfacedkayos]

I AGREE W/ MGESCURO!!!
I couldn't have said it better myself.

[kenman923]

Just sell the brand. Sales have plummeted and will continue to plummet.

[mbukukanyau]

People make fun of HUMMER of road. Its the most capable of all 4WD. GM makes sure they make em up to snuff..
Here is a typical ignorant hummer haters moment of truth

http://www.gametrailers.com/player/u...es/156742.html

[mbukukanyau]

Originally Posted by kenman923

Just sell the brand. Sales have plummeted and will continue to plummet.

new american thinking...
Oh, improving this brand is too difficult, lets run and sell...
let it be someones else problem...
Oh.. the war is difficult, lets go home...
Defeatist

[milton112c]

I'm sorry to say but the only axing that should be done at GM is Rick Wagner's job. Can no one see the potential in HUMMER? They can put two-mode hybrids and diesel engines into this trucks and charge premium prices for it. I mean c'mon how much profit does GM make on each HUMMER sale? It's gotta be close to 7 or 8 grand if not more. Throw the expensive technology in there, and charge for it. That 4.5L (i believe) Durmax diesel thats coming out soon? Why not throw that in the H2 and H3? How bout the new 6.0L two mode hybrid motor that's in the GMT900 trucks? I bet GM can charge almost 60g's for that and do great. I'm tired of this talk about axing brand lines. Any person who takes the few hours and properly plan and think things through would realize the massive potential GMC and HUMMER actually have. I know this won't be popular with everyone but my patiences has run out. I'm calling for the axing of Wagner and the entire board of directors. It's time to revamp GM and get back in the game...

[BGH]

Hummer is probably GM's strongest brand. If has huge potential if properly managed and well resourced. It seemed as though GM was trying to bring it down market. When they should have kept the entire brand around the Escalades price or higher.

But they would have had to up their game, ride heigh control, suede interior trim, very powerful engines. I'm talking 400hp+. You could have also put in BAS and the dual modes on every model, at those prices GM could just add another 3g to the MSRP and i dont think HUMMER's target market would care.

They could have also come out with with something like the range rover sport but alot faster. They could have also put on 4 wheel steering, but of course GM has to give up on everything if it doesn't go well the first time round.

[gardnet1]

While your at it Citibank, see if we can get anything for Saab which hasn't turned a profit in 30+ years.

[gardnet1]

Originally Posted by BGH

Hummer is probably GM's strongest brand. If has huge potential if properly managed and well resourced. It seemed as though GM was trying to bring it down market. When they should have kept the entire brand around the Escalades price or higher.

But they would have had to up their game, ride heigh control, suede interior trim, very powerful engines. I'm talking 400hp+. You could have also put in BAS and the dual modes on every model, at those prices GM could just add another 3g to the MSRP and i dont think HUMMER's target market would care.

They could have also come out with with something like the range rover sport but alot faster. They could have also put on 4 wheel steering, but of course GM has to give up on everything if it doesn't go well the first time round.

The problem was that Hummer should have never been its own division. It should have been a line of vehicles marketed by select GMC dealers (or Chevy).

Then Hummer would have been sustainable and it would have served as a Halo group of vehicles to bring in customers to B-P-G dealers.

[dav305z]

Originally Posted by mgescuro

AND THAT'S ANOTHER THING!!!
The HUMMER Brand is sooooooo powerful!!!!

What other GM car out there is so recognizable and so defined in its purpose??

That's the problem. It's clearly defined as an in-your-face truck brand at a time when some dealers aren't even taking trucks as trade ins.

In fact, GM did a great job managing the Hummer niche -better than they have with any other brand. Remember when the "Happy Jack" commercial first came out? This brand was rolling. The H2 was very well executed.

But the times have changed viciously. It's not really the brand or GM's fault - it just happened. It almost gives me an idea of what it must have been like to have Chevelles and GTO's on the dealer lot in the early 70's. Those were great, legendary vehicles, the best of their breed. But no one wanted them.

Could GM redevelop Hummer into a greener off-road focused brand? Maybe. But at what cost? And is it really worth devoting the company's dwindling resources?

These are intense times. General Motors should be focusing every ounce of its energy on smaller more efficient vehicles.

While your at it Citibank, see if we can get anything for Saab which hasn't turned a profit in 30+ years.

Thanks, but I think GM will want to hold on to the one brand in its portfolio with a strong reputation for building powerful yet fuel efficient cars.

[steinravnik]

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.

I don't know, most people I know have a very negative image of Hummer. The shift has been quite abrupt. 5 years ago, Hummer's image was very positive, rugged, everything you said. It's like the image turned as quickly as oil prices spiked.

[TruckMan]

Originally Posted by dav305z

Thanks, but I think GM will want to hold on to the one brand in its portfolio with a strong reputation for building powerful yet fuel efficient cars.

...that nobody buys. Good reason to keep them!