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The Wall Street Journal
July 1, 2022

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>>No doubt GM's sales report today will show a laughable number of Hummer's sold...here is the reason.

The waiting list for General Motors new GMC Hummer electric pickup truck and related SUV model recently topped 77,000 prospective buyers. Most are likely in for a long wait.

GM’s renovated Detroit factory, where about 700 workers build the Hummer, has been producing around a dozen of the trucks a day, people familiar with the matter said. That pace is unusually slow for a vehicle in production for more than six months, manufacturing consultants say.

Hummer production at GM’s Factory Zero, which underwent a $2.2 billion overhaul to build electric trucks, is on schedule, a company spokesman said. The ramp up has been slower than normal in part because the truck was developed from scratch using a new electric-vehicle platform. GM wants to ensure quality as it introduces the new technology, he said.

Output will increase sharply in the second half of the year, he said, largely because GM by late summer expects to begin using its own battery cells from a new factory in Ohio that it built with its joint-venture partner, South Korea’s LG Energy Solution. The Hummers built so far have used outsourced LG cells.

“Our ability to satisfy that demand is only going to improve as we bring on vertical integration of battery cell production,” a GM spokesman said. “You can expect to see hundreds of deliveries grow to thousands later this year.”
He added that customers are willing to wait for the Hummer EV because of its unique features. The Hummer has a longer driving range and faster charging times than rivals and has other features that make it difficult to compare it to other EV trucks on the market, the GM spokesman said.

Compared to the Hummer, Ford is making about 150 of its F-150 Lightning electric pickups per day on average at the company’s factory in nearby Dearborn, Mich., a spokesman said. The company began production of the new truck in April.
EV startup Rivian RIVN -2.02%▼ built about 2,500 of its new R1T pickup trucks in the first quarter, the company said.

Because of the Hummer’s higher price, GM likely is planning significantly lower sales volumes than those competitors, said Sam Fiorani, a vice president at research firm AutoForecast Solutions. He expects GM to position its Silverado as the direct competitor to Ford’s Lightning.

Recently, investors and Wall Street analysts have questioned whether GM—among the first of the traditional auto makers to outline big EV ambitions—has ceded a head start to some rivals. The electric version of the Chevy Silverado pickup, is scheduled to go into production next spring, about a year after the Lightning’s launch.

In an interview this month, GM Chief Executive Mary Barra said she doesn’t think GM has been given enough credit for the Hummer, which has drawn media praise and went on sale ahead of the F-150 Lightning. “We have 70,000 reservations for the Hummer. We’re delivering on it,” she said. “Frankly it’s a little stunning to me that people want to discount the Hummer.”









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The ramp up has been slower than normal in part because the truck was developed from scratch using a new electric-vehicle platform. GM wants to ensure quality as it introduces the new technology, he said.

The sales reports will be here in about 30 minutes. When the Hummer number is shockingly low, and reports and websites beat GM up for it...you now know how to post your response.








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The ramp up has been slower than normal in part because the truck was developed from scratch using a new electric-vehicle platform. GM wants to ensure quality as it introduces the new technology, he said.

The sales reports will be here in about 30 minutes. When the Hummer number is shockingly low, and reports and websites beat GM up for it...you now know how to post your response.
Q2 deliveries spreadsheet is now available (see attached). GM sold 272 Hummer EV to U.S. customers in Q2 2022.

The only proper response to the inane statement from the GM spokesman quoted in post #2 is "give me a break!"
 

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In an interview this month, GM Chief Executive Mary Barra said she doesn’t think GM has been given enough credit for the Hummer, which has drawn media praise and went on sale ahead of the F-150 Lightning. “We have 70,000 reservations for the Hummer. We’re delivering on it,” she said. “Frankly it’s a little stunning to me that people want to discount the Hummer.”
What's really stunning is the continued ineptitude of GM's marketing and PR departments, which is quite evident with Hummer EV. At the very least, Mrs. Barra needs to ensure that GM has competent CMO sooner rather than later.
 

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GM Chief Executive Mary Barra said she doesn’t think GM has been given enough credit for the Hummer, which has drawn media praise and went on sale ahead of the F-150 Lightning. “We have 70,000 reservations for the Hummer. We’re delivering on it,” she said. “Frankly it’s a little stunning to me that people want to discount the Hummer.”
I make near six figures and with my SO, combined we are well in the 2’s. If his parents weren’t loaded, I’d talk him off his Hummer EV cliff he wants to jump into. If we can’t afford a Hummer EV, what makes the Mary lady so surprised the response to the Hummer EV is what it is?

Someone tell me my interpretation of what she said is wrong.
 

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What's really stunning is the continued ineptitude of GM's marketing and PR departments, which is quite evident with Hummer EV. At the very least, Mrs. Barra needs to ensure that GM has competent CMO sooner rather than later.
I do agree with GM's generally poor marketing, though it has been showing signs of life lately.

However, I've not seen anything I'd consider a major misstep with the Hummer's marketing. What are you seeing?

I see a lot of good advertising on the internet. Everyone I've chatted with loves it....
 

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With the range issues Ford is having with the Lightning I'm glad GM isn't rushing their product to market while sacrificing quality.
I think they took this approach simply to get vehicles on the market earlier as everyone under the sun is getting to market faster. Which I'm fine with - this extremely low volume launch with such a desirable product is creating scarcity that I think adds to the buzz.

But, I agree with you on the quality front - this is a huge change for GM - everything is new and therefore a huge opportunity for quality issues. All the better to take it slow - GM has made massive strides on the quality front, I'd hate to see this switch take them 10 steps backwards.

While I don't think GM did this for quality purposes, I do think Ford should take a look at this and maybe take a page from GM's book.
 

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I think they took this approach simply to get vehicles on the market earlier as everyone under the sun is getting to market faster. Which I'm fine with - this extremely low volume launch with such a desirable product is creating scarcity that I think adds to the buzz.

But, I agree with you on the quality front - this is a huge change for GM - everything is new and therefore a huge opportunity for quality issues. All the better to take it slow - GM has made massive strides on the quality front, I'd hate to see this switch take them 10 steps backwards.

While I don't think GM did this for quality purposes, I do think Ford should take a look at this and maybe take a page from GM's book.
Imagine you are a supplier to Walmart, and they have demand for 70,000 of your product that you can only make 12 a day of; what do you think Walmart would do?

What this does allow is for GM to pretend they have tremendous interest/demand in a product they could very-well have almost none. (I don't think it's "none" but it could be; doesn't seem like GM would have raised the price $6,000 but who knows)

This reminds me of a Shark Tank Episode, when the inventor has an idea, they have tremendous demand, can't make enough, and lose money on every one they do make!
 
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However, I've not seen anything I'd consider a major misstep with the Hummer's marketing. What are you seeing?
I agree that GM has avoided any major missteps thus far with Hummer EV's marketing strategies. My concern is that those strategies are still missing two essential elements:
  1. Aligning promotion and production planning activities to actual customer demand (Ed753 noted this in post #9)
  2. A long-term plan to cultivate and maintain Hummer as a premium brand/sub-brand
 
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I agree that GM has avoided any major missteps thus far with Hummer EV's marketing strategies. My concern is that those strategies are still missing two essential elements:
  1. Aligning promotion and production planning activities to actual customer demand (Ed753 noted this in post #9)
  2. A long-term plan to cultivate and maintain Hummer as a premium brand/sub-brand
So the question is, what benefited GM more - getting Ultium product to market ASAP, or waiting until they could get that first Ultium plant up and running at capacity. GM's lunch money was getting taken by Ford, so to speak - so I get why GM did this, I see a logic in it. I think this slow ramp up has more to do with showing Wall St what is coming and to get that positive press (which they have).

But what is the potential damage of this slow ramp up? I've not heard any of the people with deposits complaining that much. And I'm not looking for a fight with Ed, but he's had it in for the Hummer from day one, so I tend to discount a lot of his points as one sided. I look at the nature of the Hummer and who I think the people are that put deposits on them - these are toys, they are not going to be the buyers only vehicle - most of these people can wait. There is nothing else on the market like this, so if you want something like this then you can't just go to the competitor for something similar - there isn't anything similar. Ed quoted Walmart - I don't think that is a good comparison. Walmart deals in commodity product that they MUST have in stock. The Hummer is a luxury product - you want one, you wait for it - just like a Ferrari. I hear people can wait several years until their number comes up so they can get one.

I do agree that it would be a lot better to have production better aligned with demand, but, because of the nature of the Hummer I don't think it will hurt them to much. If this was the Equinox, then a whole different story.
 

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Bar Napkin Math

70,000 / 12 = 5,833 (days) / 250/year = 23.33 years.
- How many years and $6,000 price increases are these waiting buyers willing to endure?

Although, I haven't heard of any people irate at the length of their wait (unlike those Bronco buyers) so maybe there really isn't as many as we are lead to believe?
 
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