Hummer H1 To Cease Production

[Perian]

Link: http://biz.yahoo.com/ap/060512/goodbye_h1.html?.v=4

General Motors to End Production of Hulking, Gas-Guzzling Hummer H1

By David Runk, Associated Press Writer
General Motors to End Production of Hulking, Gas-Guzzling Hummer H1

DETROIT (AP) -- The 2006 model year will be the last for the Hummer H1, the hulking, gas-guzzling status symbol that has attracted celebrities and off-road enthusiasts but has drawn the ire of environmentalists.

General Motors Corp. announced plans Friday for the H1, which is the foundation for the automaker's Hummer brand. Based on the military's Humvee, the about 12,000 put on the road since 1992 defined the Hummer name.

"It's a reflection of where we're going with the Hummer brand," Hummer general manager Martin Walsh said of the decision. "The Hummer DNA still resides in the Humvee. ... It will always be the core from where we come."

GM expects the last H1s to be built next month.

Walsh said Hummer plans to focus on models with broader appeal instead of the niche-market H1. Since taking over the Hummer name in 2000, GM has introduced the still hefty H2 and a midsize H3 sport utility vehicle.

The H1 gets about 10 miles per gallon, but Walsh said rising gas prices didn't factor into GM's decision. He noted that H1 buyers typically have been less sensitive about gas prices than most other drivers.

Auto analyst Erich Merkle with the Grand Rapids consulting company IRN Inc. said the decision fits with steps GM has taken to bring the Hummer brand to more mainstream drivers with the H2 and H3.

"They're going to continue moving Hummer in that direction," Merkle said. "It's a great brand. There is a lot that can be done with that in terms of leveraging its ruggedness and toughness."

Merkle added that the kind of drivers who buy the H1 don't worry about things like gas prices.

"It's really one of those over-the-top vehicles," Merkle said. "It doesn't really have much of a place in everyday society. You can't put it in the parking ramps. Parking spaces can't accommodate it."

The H1 attracted well-heeled drivers looking for a military-style vehicle with an intimidating stance. For the 2006 model year, the H1 was offered as a high-performance H1 Alpha that costs about $130,000 to $140,000.

The vehicle first was marketed to the public as the Hummer in 1992 by AM General, which also makes the military version. Under a 1999 deal, GM bought marketing rights to the Hummer name and called the vehicle the Hummer H1.

Hummers often have been associated with celebrities who owned them, such as actor Arnold Schwarzenegger. California's governor was AM General's first civilian customer, buying a custom-made conversion of the military model as well as civilian production models.

Last year, GM sold 374 H1s, down 16 percent from 447 in 2004.

AM General, which builds the H1, H2 and Humvee in Mishawaka, Ind., said in a statement that it doesn't plan to cut any jobs as a result of the decision. GM said workers there were expected to be shifted to military production.

[Perian]

Originally Posted by Perian

Walsh said Hummer plans to focus on models with broader appeal instead of the niche-market H1. Since taking over the Hummer name in 2000, GM has introduced the still hefty H2 and a midsize H3 sport utility vehicle.

Dateline: May 2025:

"GM today introduced the Hummer H74..."

[give_it_all_]

For some reason I think they won't make it to 74 by 2025. It takes GM 10 years to reesign something, sooooo maybe up to H6......:p

[jbernie]

Not really a big surprise, disappointing all the same. Maybe they can produce a new H1 that is just as capable but comes in around the $75-80k mark base price, they would help with volume.

Will be interesting to see where the used vehicle pricing goes over the next few years.

[jfnz24]

Less than 500 built a year, yes, this was a very small niche. The H2 should be able to fill those shoes, though.

[steverino]

I think everyone who would want an H1 has already bought one. It's a pretty limited market, so seems like the right decision at the right time

[nadepalma]

Originally Posted by jfnz24

Less than 500 built a year, yes, this was a very small niche. The H2 should be able to fill those shoes, though.

I agree, especially in light of the fact that the H2 is not as wide, but nearly as large--so you really have to question whether or not you needed something bigger. Regardless, it stinks they're cancelling it, but hoenstly it's not a horrible move -- maybe the environmnetalists will get off GM's back a bit now too.

[ByTheLake]

Makes sense. I'm sure that the H1 market has been satisfied, and the price was astronomical.

I'd rather see Hummer sell a Jeep Wrangler competitor anyway, so bring on the H4!

[Co27sskid]

so now... 2,3 and maybe 4.... seems like the plan has a hole in it? Maybe call the H2 an H1???

[GM_Fanatic]

If they weren't making money on it and the buisness case just wasn't there, then so be it. Personally I viewed it as a "supercar" of sorts, one of the few that GM has in its portfolio, so it will be sad to see it go. I know many people who say "The only hummer I like is the origional!"...this will be hard to see them take this news. H2 needs a redesign pronto then!

[SUPERBADD75]

the H1 needs to go away. we're lucky to sell 2 in a year. they're too expensive for the people that REALLY want them, and the people that can afford them have moved on to the newest toys. there are still a few people out there that strike it big and have always wanted an H1, but we can't survive on those people. let's get a Wrangler-beating H4 out there now!!

[RangeRover]

Alas the only real Hummer is dead! The H2 is fine but the H3 is suspect. Mind you I am talking in terms of Brand and not sales. I think the H3 sells well but is a far cry from the H1 that signifies HUMMER. Hummer never had a direct competitor and now I fear that they will start repositioning themselves to become an over glorified Jeep.

[silveradohd2k5]

If they were smart they would make it alittle more civilianized and throw the Duramax w/allison tranny... That thing would get 20 MPG and maybe cost 60-80K depending on options... Course maybe they see it as a disadvantage to the H2 if they did something like that who knows... Sad to see it go but at least the military will still get them... Heck they should thrown the Duramax into the H2 that thing gets just as bad of gas mileage as the H1 bout 10-12 MPG...
Also as to something that will compete with the wrangler doesn't the h3 in a ways compete with the wranger or are you talking about an open typed vehicle like the wrangler where you can remove the roof and all that... outside that i thought the H3 and wrangler were close to the same size dememsion wise... I do know the h3 is very capable off road from what ive heard and read...

[Ty_99]

A sad day for Hummer, but unforunately has noted by a couple people already, the writing was on the wall. But alas there is still hope for a future comeback with the Humvee still in production.....
The premier Off-Roader is now retiring.

[kenman923]

I think that it's a good move on GM's part. They can create vehicles that, while they have that Humvee look, it not as bulky and awkward.