GM's Hummer brand under review for sale or major revamp

[TRWRacing]

What with all the males that have the Napleon Complex and the competive women drive then?

THE AUTO INDUSTRY SAYS THAT SUV DRIVERS ARE SELFISH AND INSECURE
People who tool around in hulking, big-ass sport utility vehicles have been getting dissed a lot
lately, but no one has raked them over the coals like the people who sold them the SUVs in the
first place. The multibillion-dollar auto industry does extensive research into its customers, and
lately that research has focused quite a bit on the people who buy SUVs.
Investigative reporter Keith Bradsher of the New York Times has looked into the SUV
phenomenon for years. He's read marketing reports meant only to be seen within the industry;
he's interviewed marketing executives from the car companies and from outside research firms.
The industry has come to some unflattering conclusions about the people who buy its SUVs. As
summarized by Bradsher:
They tend to be people who are insecure and vain. They are frequently nervous about their
marriages and uncomfortable about parenthood. They often lack confidence in their
driving skills. Above all, they are apt to be self-centered and self-absorbed, with little
interest in their neighbors and communities....
They are more restless, more sybaritic, and less social than most Americans are. They tend
to like fine restaurants a lot more than off-road driving, seldom go to church and have
limited interest in doing volunteer work to help others.
David Bostwick, the director of market research at Chrysler, told Bradsher: "We have a basic
resistance in our society to admitting that we are parents, and no longer able to go out and find
another mate. If you have a sport utility, you can have the smoked windows, put the children in
the back and pretend you're still single."
Bostwick says that compared to those who buy similarly large minivans, SUV drivers are selfish:
Sport utility people say, "I already have two kids, I don't need 20." Then we talk to the people
who have minivans and they say, "I don't have two kids, I have 20 — all the kids in the
neighborhood."
One of General Motors' top engineers also spoke of the difference between minivanners and
SUVers: "SUV owners want to be more like, 'I'm in control of the people around me.'" He went
on:
With the sport utility buyers, it's more of an image thing. Sport utility buyers tend to be
more like, "I wonder how people view me," and are more willing to trade off flexibility or
functionality to get that.
The executive VP for North American auto operations at Honda revealed: "The people who buy
SUVs are in many cases buying the outside first and then the inside. They are buying the image
of the SUV first, and then the functionality."

Jim Bulin, a former Ford strategist who started his
own marketing firm, told Bradsher: "It's about not
letting anything get in your way and, in the extreme,
about intimidating others to get out of your way."
Daniel A. Gorell, who also used to market for Ford
and now has his own firm, says simply that SUV
drivers are "less giving, less oriented toward others."
Defenders of SUVs have attacked Bradsher for
reporting these things, but they always forget the crucial point: Bradsher isn't the one slamming
SUV owners — it's the auto industry itself.

[TruckMan]

As long as we're stereotyping people, how about this one?

It's a little-known fact, but US ***, lesbian, bisexual and transgender consumers buy cars. What's more, they show a penchant for the luxury end of the market and are "significantly more interested in hybrid electric vehicles than their non-*** counterparts".
That's according to a study by Harris Interactive which has managed to pull this latter factoid from a survey which actually proves nothing more than homosexuals, bisexuals and transsexuals have jobs, tastes and money with which to indulge them.

Indeed, Harris reckons this demographic - abbreviated to GLBT - represents more than $600bn in buying clout and as a consequence has become a significant target for US automotive manufacturers. Harris declares: "Nearly three-quarters (72%) of GLBT consumers indicate they are more likely to consider purchasing a vehicle from a manufacturer that has specifically targeted automotive advertising to the GLBT community."
Apparently, Volkswagen, Subaru, Volvo and BMW are seen as the firms that "extend the greatest outreach to the GLBT community through their marketing communications". The said manufacturers have apparently tempted the GLBT buyer with an increased use of online and viral marketing because "this group relies heavily on both the internet (62%) and "word-of-mouth" (45%) advice when deciding which vehicle to purchase".
Regarding hybrid electric vehicles, 51 per cent of GLBTs consider it worth paying the extra for the technology, compared with just 34 per cent of the non-GLBT population.
We look forward, therefore, to Toyota targeting the GLBT market with an online ad campaign declaring: "Prius: brings out the bisexual in you" or "Test drive the Prius - the car that swings both ways".
In the meantime, we'd like to suggest that the average car advert - in the UK at least and we're happy to be contradicted as to the US equivalent - seems to involve either resolutely heterosexual men racing pyroclastic flow along a road which has miraculously transformed itself into a snake, or punts for people carriers extolling the virtues (to mothers, naturally) of having 47 seat configurations so you can get all of your wailing brats and three prams in the back and still have plenty of room for the weekly shop.®
Methodology


In case you're sceptical about the results of this survey, here's reassurance:

The AutoGLBT Study was conducted online in the United States by Harris Interactive® between July 21 and August 1, 2005 among 2,818 self-identified ***, lesbian, bisexual and transgender adults (aged 18 and over) and 2,121 heterosexual adults (aged 18 and over). Figures for age by gender, education, race/ethnicity, region and income were weighted where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was also used to adjust for respondents' propensity to be online.

[crippler22]

I think GM needs to rethink the notion of scrapping the tahoe/suburban and Hummer. They are over reacting. People still need and want the tahoe and suburban. As for Hummer it can be saved and be productive in the market if GM restructures it correctly. You won't see Jeep going away any time soon so why Hummer? GM needs to either scrap the H2 or redesign it to just smaller than a tahoe size to compete with the big Jeep. Except offer the H2 with the new smaller Duramax diesel as an option. Leave the H3 as is to go against the grand cherokee but consider a Duramax for it as well. Then introduce a smaller H4 similar in size to the wrangler. with the I-5 vortec. Hummer could be a success if GM can trim the fat off of the vehicles and the sticker price. Just a thought.

[davefr]

Originally Posted by Uzzy

How about an all diesel brand? I think that would be a better way to go.

At a $1 price premium over reg gas and problematic emissions technology, I think diesel should be killed.

[spidge]

Originally Posted by ByTheLake

Hard news to hear. We can debate whether this eventuality should have been evident a few years ago, but that's not helpful. GM can't continue building products that aren't in demand.

Sounds like it's going to be a few years before some of this new small car product hits the streets. Lean times are here for sure.

I was listening to Wagoner's presentation on XM Radio this morning. The Hummer situation isn't a surprise, really. While I honestly had an eye on that H3 pickup down the road, the Hummer brand is tough to justify today, unless it receives a significant lineup change, and that would take serious funds. I'd say the H2 is dead, and without that H4 we've all wanted to have, how can Hummer survive on the H3 alone? It can't. Let it go.

Agreed. Aside from the cancelled H1, the Hummer lineup is a bunch of reskinned Chevy trucks getting by on the tough image of the H1. It would take a while for the H3 pickup and smaller H4 to come to fruition, and in the meantime, with these fuel prices, they will have a hard time selling what they have. Kill the brand, and concentrate on Chevy/GMC trucks.

[Uzzy]

Originally Posted by davefr

At a $1 price premium over reg gas and problematic emissions technology, I think diesel should be killed.

I guess you've never heard a little place in the world called Europe. The diesel vehicle sales there are around 50/50 with gasoline. The fuel prices in Europe are sometimes double or more than prices in the US. Diesel is the way to go believe it or not. The price premium is quickly dissolved by the increase in fuel efficiancy. The only obsticles to diesel's acceptancein the US is the stubborness of the US car buying public and the emmissions legislation that is some how more strict for diesles than the notoriously strict European standars. Americans seem to believe that all diesles are either huge engines for trucks that spew black moke in the wake, or are the disasters that they put in the Oldsmobiles back in the '70s. This is simply not the case in most of the rest of world.

[jameskz28]

Originally Posted by bmlvu97

A couple questions....how many Hummers does the government purchase on an annual basis? If the number is reasonable, would it make sense for GM to make the Hummer "military only" and only sell to the government (at a reasonable profit margin, of course).

If GM were to totally abandon the Hummer, what other options are there available for military use???

Brian

The military has already discontinued aquisitions of Hummer's since GM quit producing the H1. Bad news for GM, but good news for the troops since Hummers don't fare very well against IED's and EFP's.

The Military is now procuring MRAP's to replace the Hummer.

IED = Improvised Explosive Device
EFP = Explosively Formed Penetrator
MRAP = Mine Resistant Ambush Protected

[SierraGS]

Originally Posted by t-rex

Hummer will be no different than erstwhile brands like LaSalle or Eagle. Around for a decade or so, then dropped because of changes in the market, or restructuring within a company.

The Cadillac 60-series killed LaSalle, and Eagle hung around solely for dealer commitments.

That sums it up.

You may want to add it was dropped because the parent company refused to change its focus fast enough (no U.S. Market Diesel, no "Wrangler" competitor) to allow it to survive.

[Uzzy]

Word around the Hummer dealership is it's being sold to Tata Motors. Idon't know if that's speculation/rumors or some inside info. Rumor is my guess.

[SRX7697]

Does anyone know, or know where to find, how many hummer's there are sitting on dealer lots right now? I'm curious to know how much stock of them there is...

[psycho]

As a Hummer owner, I think it sucks!!!

Maybe GM will buy it back! HA-HA!

[Hummer Guy]

Right now everything is still up in the air -- GM announced today they hired Citibank to look at external options (selling), but they also made it clear they're still working internally on revamping the product portfolio.

http://gminsidenews.com/forums/f18/g...-review-65938/

[jamiepeterson2]

Quick knee jerk reaction that actually requires a bit more thought. Let's hope the strategic review will provide other options other than "HUMMER SOLD TO THE HIGHEST BIDDER". Tata and Mahindra might be interested and this could yank a looming albatross off GMs back.

However, there is a better option IMHO. First, GMC is nothing more than rebadged Chevy trucks. That has to change. So drop GMCs current line-up entirely and substitute Hummers instead. Make GMC just a sales channel for Hummer and the Opel Movano.

Restructure HUMMER to offer SUVs (H2, H3, H4 & HX) and pick-up trucks (T2 & T3) with both 2WD and 4WD. They could all be built on the GMT900 and GMT700 platforms replacing the current GMC clones.

Then BPG would have something different and unique to sell. All HUMMERS should be hybrids without exception. Therefore by just enhancing the image slightly GM can still retain and market the iconic HUMMER quite successfully. Albatrosses can fly, if you let them.

[jry]

Originally Posted by Hummer Guy

Right now everything is still up in the air -- GM announced today they hired Citibank to look at external options (selling), but they also made it clear they're still working internally on revamping the product portfolio.

http://gminsidenews.com/forums/f18/g...-review-65938/

I just do not know what you can revamp. The whole aura of Hummer is big-brawny drive it up the mountain and in the river......

You can make 'em smaller and what do you have? A Jeep Patriot?
It seems like the H3 is as small as you'd want.
GM could do what Ford did with Jag. Sell it and supply parts for a fee.
Here is a question. If the oil bubble bursts, will things slide back closer to where it was? Will folks start buying these things again?

[Tstag]

Originally Posted by jry

I just do not know what you can revamp. The whole aura of Hummer is big-brawny drive it up the mountain and in the river......

You can make 'em smaller and what do you have? A Jeep Patriot?
It seems like the H3 is as small as you'd want.
GM could do what Ford did with Jag. Sell it and supply parts for a fee.
Here is a question. If the oil bubble bursts, will things slide back closer to where it was? Will folks start buying these things again?

Hmmm look at what Land Rover makes and then understand what the problem is with Hummer. In a way Land Rover would have been a great replacement for Hummer.....