HUMMER: The Best of GM’s Brands on the Cusp of Being Thrown Away

[samy1691]

GM and the rest of Detroit(car industry) react instead of acting!!!! Just like the Government!!! They finally get the product right.....H4 and Camaro......then either come out late or give up entirely...........jackasses....all of them!!!!!!!

[vam29]

GM's plan could make excellent business sense if they're planning on selling Hummer and Saab to use the funds to pay for expenses associated with closing GMC and Saturn. Then watch GM return to it's former greatness!

[TruckMan]

A HYBRID HUMMER IS AN ABSOLUTE JOKE. You guys are absolutely delusional. Hummer vehicles (including the H3) have ALWAYS been known for their crappy fuel economy, but they still sold well. Why? Because people bought them for their off-raod capabilities, not their fuel economy. That's like saying Lamborghini needs to put a 2-mode hybrid system in the Gallardo to survive. That's just stupid. Hummer is a good brand for what it is, and people will continue to buy them, just in slightly smaller numbers.

You people need to wake up and come to your senses. Most (not all) people don't want hybrids, especially in large vehicles. Look at the Tahoe/Yukon hybrids collecting dust on dealers lots. And if hybrids are the answer to our fuel prices, why aren't they in every vehicle in Europe? Gas is 3 to 4 times more expensive, and most people still drive ICE vehicles. It's because in 90% of cases the hybrid doesn't pay itself off before the buyer sells it - it's a waste of money.

People that want hybrids look at a vehicle as only a means of transportation. And that's good for them. That's why most hybrids and economy cars look like crap. People that buy Corvette, Hummer, GMC, Cadillac, etc buy them for a different purpose - Comfort, Safety, Luxury, Functionality, AND EVEN STYLING!!! Some people think of their vehicles as an expression of their personality, or care more about the way they look & perform. Those people couldn't care less about fuel economy! Get it into your heads! They don't care about fuel economy. Only the first group of people care. Those are the vehicles that need hybrids, not the Cadillacs/Hummers of the world!

[Saturn69]

I'll admit that there's money to be made with Hummer still, people will always have a want for SUV's and the disposable income to operate them. However, calling Hummer 'The Best' of GM's brands is wrong. It isn't the best, it's a good viable name and product despite growing concerns for fuel prices, but it is not the best division they have. Either way I suppose I don't care too much since I'd never own one, even if I could afford it, and it doesn't really affect me if they sell it off.

[GMC-70]

Look at all the BMW, MB, Audi, Toyota, Nissan, Honda and VW SUVS that get close to (in some cases less) MPG then the H3. Why does it always seem that the media pins Detroit as the only manufacturer of gas guzzlers??

[Saturn69]

Originally Posted by GMC-70

Look at all the BMW, MB, Audi, Toyota, Nissan, Honda and VW SUVS that get close to (in some cases less) MPG then the H3. Why does it always seem that the media pins Detroit as the only manufacturer of gas guzzlers??

Because it's good business these days for the media to 'hate' on American products, and since the vast majority of the sheeple think that American cars and trucks are crap compared to the Almighty Japanese. Then they wonder why the dollar has no value, people are losing their jobs and it's hard to find anything that isn't made in China. We only have ourselves to blame.

[MaxLegroom]

Originally Posted by TruckMan

You people need to wake up and come to your senses. Most (not all) people don't want hybrids, especially in large vehicles. Look at the Tahoe/Yukon hybrids collecting dust on dealers lots. And if hybrids are the answer to our fuel prices, why aren't they in every vehicle in Europe? Gas is 3 to 4 times more expensive, and most people still drive ICE vehicles. It's because in 90% of cases the hybrid doesn't pay itself off before the buyer sells it - it's a waste of money.

People that want hybrids look at a vehicle as only a means of transportation. And that's good for them. That's why most hybrids and economy cars look like crap. People that buy Corvette, Hummer, GMC, Cadillac, etc buy them for a different purpose - Comfort, Safety, Luxury, Functionality, AND EVEN STYLING!!! Some people think of their vehicles as an expression of their personality, or care more about the way they look & perform. Those people couldn't care less about fuel economy! Get it into your heads! They don't care about fuel economy. Only the first group of people care. Those are the vehicles that need hybrids, not the Cadillacs/Hummers of the world!

One reason that Europe doesn't buy as many hybrids is that they rely on diesels, and turbodiesels, in particular, to improve fuel economy and then performance. Also, many Europeans drive cars that make a Prius look kinda big. Think about a Golf or Astra next to a Prius, they're both shorter.

As for hybrids as only a means of transportation, I'd guess that's why Lexus sells 3 different hybrid models. They may not be terribly popular, but I guess there's some money to be made there if they bothered. The economy car remark harks back to the typically American idea that if it's small it must be cheap, and very much the automotive equivalent of a hair shirt. Cars like the Mini have managed to succeed in this country to refute that notion.

So far around here, I haven't seen Tahoe hybrids on dealer lots, only on the road. So someone must indeed care.

Actually, the use of new technologies on Hummers could be quite interesting. I recall reading, or perhaps watching commentary that went to this effect: "If the Hummer were built of carbon fiber, weighing perhaps 2200 lbs (3000 more likely), and were powered by a hydrogen fuel cell, then the Prius would be the problem..."

While I'm hardly a Hummer enthusiast, as I'm not much into off-road vehicles, I find the possibility quite interesting.

[GMC-70]

Originally Posted by Saturn69

Because it's good business these days for the media to 'hate' on American products, and since the vast majority of the sheeple think that American cars and trucks are crap compared to the Almighty Japanese. Then they wonder why the dollar has no value, people are losing their jobs and it's hard to find anything that isn't made in China. We only have ourselves to blame.

Excellent post!

[Z28x]

C.A.F.E. (not CAFÉ) is not killing Hummer, it is the $4+ (soon to be $5) gasoline that is killing Hummer.

The years of 85,000 sales are over too. Hummer will be lucky to sell 30,000 vehicles in the next 12 months.

Does the writer of this article even know anything about cars, business, or the auto industry???

[dav305z]

I just have to disagree with you on this Mgescuro (for the record, I agree with you most of the time). Sometimes the niche for niche brands disappear, and it's not worth keeping them.

GM has been here before. Cars like GTO and Chevelle were virtual niche brands unto themselves in the 1960's - they had multiple engines and configurations, they sold in the hundreds of thousands. They brought many customers into Chevy and Pontiac showrooms. Then a terrible thing happened - their niche was totally obliterated. The cars hung on for a couple of years, growing more emasculated with each passing year, but failing to find owners none the less.

Worst of all is the damage Hummer does to GM's overall image. It's perceived as a gas guzzling, military-influenced truck brand. Right now we have $4 a gallon gas and are five years into an incredibly unpopular war (in which the insufficiently armored HumVee is more and more being cast as an image of inadequacy). Is this perception unfair? Perhaps. But it's a real perception that damages the entire GM brand, and fuels the fire of every Thomas Freedman who thinks the company is "dangerous." Put another way, Hummer is to GM what Donald Rumsfeld was to the Bush administration - a symbol of arrogance and failure.

Perhaps GM could turn it around -perhaps. They'll have to use resources that should be going toward building small and mid-sized cars - you know, the stuff people are buying right now. They would also have to steer the brand away from its well defined niche - a practice you profess to despise.

I fail to understand why finding a seller means the brand is actually worthwhile. I am certain that if the rights to the name "Cavalier" were put up for sale, someone would buy it. That doesn't mean GM should be building Cavaliers. There likely is a company out there with the focus and the business model to sell Hummers at a low volume and at a profit. That doesn't mean GM should keep it, let alone invest in it.

[windvale]

Considering the following:

1) Hummer has a very high brand awareness with the public. EVERYBODY knows what a Hummer is and what it can do.

2) Very few people even know that Hummer is owned by GM

3) Regardless of how many Hummer's GM actually sells, the profit per vehicle has to be astronomical.

We'll never see a day when there's a Hummer in every driveway - Hummer is a high end niche brand that DOES have its place in the market. If GM gives away Hummer out of sheer panic then Rick and current board are even more devoid of leadership and vision than I even thought...

[eaton53]

HYBRID HUMMER IS AN ABSOLUTE JOKE. You guys are absolutely delusional. Hummer vehicles (including the H3) have ALWAYS been known for their crappy fuel economy, but they still sold well. Why? Because people bought them for their off-raod capabilities

Not necessarily. Many people bought 'em for this...

http://www.autotrader.com/fyc/vdp.js...00&cardist=258

How much you think the dude's got wrapped up in that? $70K? $80K?

[dav305z]

Originally Posted by windvale

Considering the following:

1) Hummer has a very high brand awareness with the public. EVERYBODY knows what a Hummer is and what it can do.

And almost everybody hates what it is and what it does.

2) Very few people even know that Hummer is owned by GM

Just not true. It's the face of the company that people love to hate.

3) Regardless of how many Hummer's GM actually sells, the profit per vehicle has to be astronomical.

They still have to support the brand, and right now, these cars just aren't selling well. GM is not a botique manufacturer - it needs volume to survive - and right now volume is not gonna be found in new trucks.

We'll never see a day when there's a Hummer in every driveway - Hummer is a high end niche brand that DOES have its place in the market. If GM gives away Hummer out of sheer panic then Rick and current board are even more devoid of leadership and vision than I even thought...

Agreed. GM should not give away the brand at firesale prices just to be rid of it. But the reality is GM SHOULD be panicking. They are buring through cash at an alarming rate and will need to pull more than a few tricks out of their hat to remain a viable company. Ford sold Jag - a much more valuable brand. That may have been the correct decision for them. GM needs to focus on the vehicles people want to buy. Selling Hummer might give them some of that flexibility.

[pinyon]

If GM could sell just as many H3s and a new smaller model under the Chevy nameplate and make some cash selling the name then I say go for it. Make a Z71 type off road line and pack the Hummer capabilities in it.

[Tone]

Part of managing a successful business is knowing what markets you can enter and win. Porche can successfully market and sell sports cars as can Ferarri. That doesn't mean that any company can enter that market and be successful.

When SUV sales were climbing, GM and Hummer looked like a good fit. It gave GM a way to move into a high growth, high margin business.

But, now that SUV sales are maturing, Hummer will likely be a niche business. Is GM really very good at managing small niche brands?

Outside of the Corvette, I would say no.

With the right buyer, Humner could thrive. To bad a company with experience managing a niche brand (say, Porche) isn't interested in buying. GM would get an injection of cash and the brand would go to a buyer better able to manage it.