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

[ByTheLake]

This is not simply a product mix decision. GM has to manage the relationships with its Hummer dealers, many of whom have invested millions in their exclusive facilities. Hummer franchises were given to GM's best dealers, so these are critical business relationships.

Cash flow is critical, so heavy investments in product development are to be avoided. Perhaps GM could partner with an off-shore provider of small 4x4 vehicles to fast-track another product or two.

Hummer could thrive, especially if marketed globally and provided the right product mix. For now, GM might need to borrow a vehicle or two to buy some time.

[TruckMan]

Originally Posted by dav305z

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

A lot of people hate the Prius and Toyota, but that's not a reason to get rid of them. There's always somebody that isn't going to like you. Screw 'em.

Originally Posted by dav305z

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

I'd say at least 80% of average people have no idea GM owns Hummer.

Originally Posted by dav305z

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.

That why GM platform shares. While the H3 isn't doing that great alone, the Colorado, Canyon, AND H3 together can make decent sales (if GM doesn't continue to screw things up).

Originally Posted by dav305z

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.

I think GM has bigger worries than Hummer - Pontiac for one. That brand is in an image crisis. Hummer at least has clear direction of what it is and where it's heading. Drop/lower the H2, bring in the H4, refresh the H3 and Hummer will be fine.

All of these knee jerk reactions by GM (and consumers) is what has GM (and the economy) in a bad situation. Things will stabilize soon and people will cope and adapt. Trucks and SUVs will become popular again soon enough. It doesn't take long for people to realize that driving a compact isn't the same as driving a mid-sized SUV. They'll be back.

[windvale]

Originally Posted by dav305z

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

Ask your mom or your wife who owns Hummer...

[eaton53]

Originally Posted by windvale

Ask your mom or your wife who owns Hummer...

My wife knows.
She likes Hummers. But she likes Cadillacs more.

[MisterMe]

Originally Posted by jameskz28

Ahh...I remember the good 'ol days where the average American had no idea what brands GM had under its belt. For the most part, GM brands seemed more like seperate companies, at least to the layman.

...

What planet was that? The hierarchy of GM's six North American brands was well-known to every buyer who had the sense that God gave red brick. Chevrolet, Pontiac, Oldsmobile, Buick, Cadillac, and GMC trucks were clearly GM brands. Every GM passenger car had a "Body by Fisher" plate in the door sill.

[Hoosier Red]

Originally Posted by TKR

"Hummer by GMC"???

I've always thought it would have made more sense to make the Hummer a sub-brand of GMC. Hummer becomes GMC's "Corvette." And I agree with another poster who questioned the reasoning to pairing Cadillac and Hummer. I still think that's just odd.

[Ming]

I'm on the fence here. GM is in DEEP financial doo-doo, and HUMMER's sale may throw them a lifeline and allow them to put more money into less brands and products.

Perhaps GM could sell a 51% stake in the brand to Mahindra, and let them develop new vehicles and advertise for the brand? I dunno.

I understand the luxury brand image thing is strong where you live Mgescuro, but that doesn't translate well to other parts of the country where HUMMER dealers are getting slammed by gas prices, like south of Houston, for instance where they no doubt were appealing to once cash-flushed upper middle class folks who are now watching their wallets more closely. These people live in a part of the country where the brand of latte you sip, the the restaurants you are seen at, or the price of the sunglasses you wear don't matter --- and they can be equally socially accepted in a much cheaper Chevy SUV.

I don't see a problem with HUMMER getting melded in to GMC, for instance, as a kind of Scion sub-brand.

[jameskz28]

Originally Posted by CaptainDan

The H1 was (and still is) designed and built by AMGeneral.

FYI: H1 production was ceased in June of 2006. The H2 is also produced by AM General.

See "News & Information" and "FAQ's" sections:
http://www.amgeneral.com/corporate.php
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[jbartley]

it's really not about CAFE or managing product. It's about GM's need for cash, ASAP!

[jameskz28]

Originally Posted by MisterMe

What planet was that? The hierarchy of GM's six North American brands was well-known to every buyer who had the sense that God gave red brick. Chevrolet, Pontiac, Oldsmobile, Buick, Cadillac, and GMC trucks were clearly GM brands. Every GM passenger car had a "Body by Fisher" plate in the door sill.

I guess the planet that I have been living on for 30+ years? I guess it is theoretically possible that every person that I know or talk to is a complete bumbling idiot, but that is highly unlikely. I bet you can still find people who have no idea that some brands are owned by GM...HUMMER is a great example- before the age of "instant news" where everything is plastered on the TV within minutes, alot of people were (and some still are) naive.

I would be willing to bet that more than 50% of people off the street could not name every brand GM owns that sells cars in the US...most would likely forget Saab- which admittedly has not been very memorable lately. My own mother probably couldn't name two. I understand we have baised opinions here- but think about the average person who doesn't give this subject two thoughts.

And to the layperson I don't believe "Fisher" is synonomous with "GM".

[Tone]

Originally Posted by TruckMan

I'd say at least 80% of average people have no idea GM owns Hummer.

Originally Posted by jameskz28

I would be willing to bet that more than 50% of people off the street could not name every brand GM owns that sells cars in the US...most would likely forget Saab- which admittedly has not been very memorable lately..

I'd say 82.66% of GMI posters make up statistics to bolster their arguement!

[Slack]

The US market accounts for 84.5% of HUMMER sales. HUMMER sales were down 62% from May 2007 to May 2008. I'd call free falling sales a good reason to get rid of the brand.


http://www.minyanville.com/articles/...686/from/yahoo

[HoosierRon]

Hummer's demise has nothing to do with the price of fuel. As mgescuro said in the first post, Hummer is all about image. Well, being "it", being the "in" brand, always has a problem: fashion never stands still. The bottom line is that it no longer is "cool" to be seen in a Hummer. To the contrary, it is an embarrassment. When Hollywood stars started to arrive on the red carpet in Priuses, you knew the Hummer's days were numbered.

[mgescuro]

Originally Posted by derrado

Mgescuro, I understand that you believe Hummer is strong because it has a defined goal and focussed vehicles. However, it is a goal and a range of vehicles that are going to become less and less popular. Killing Hummer does wonders for GM's PR and gets rid of a bit of clutter in the brand stable.

Correct. Defined goal. Defined purpose. Defined product.
There isn't another brand at GM that has that!!! Not Saturn. Not even Cadillac.

A fleet of diesel HUMMERS would do wonders. Don't make it an Alpha only option.
Expansion to regions like Africa and Australia and the Middle East that would put HUMMERS to good use is also an option. Face it, GM needs an international presence.

GM hasn't even explored the potential of HUMMER. All they see is "big suv" and "gas guzzling."

There is a need for vehicles such as HUMMER.

[jameskz28]

Originally Posted by Slack

The US market accounts for 84.5% of HUMMER sales. HUMMER sales were down 62% from May 2007 to May 2008. I'd call free falling sales a good reason to get rid of the brand.


http://www.minyanville.com/articles/...686/from/yahoo

Point well taken, but you are ignoring the other side of the arguement:

Hummer dealers uneasy as GM weighs possible sale By DEE-ANN DURBIN, AP Auto Writer
Thu Jun 12, 3:34 PM ET

DETROIT - As if high gas prices, a weak economy and a strike by a major supplier weren't enough to drag down Hummer's sales, Hummer dealers are now reeling from the news that General Motors Corp. may consider selling the brand

"Hummer sales were up 42 percent in Europe through April, thanks to booming sales in Russia and a new right-hand-drive version in the United Kingdom."
"Sales in the Middle East were up 27 percent"
"sales in the Asia and Pacific region shot up 345 percent as right-hand-drive versions arrived in Japan and Australia"

Article at link:
http://news.yahoo.com/s/ap/20080612/...uneasy_dealers
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