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Old 3rd June 2008, 19:29   #1
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Unhappy GM considers selling Hummer. EDIT : Sold to a Chinese Company

At times what is painfully obvious to the whole world - but obvilious to the owner - gas guzzling cars are not going to sell. Pushing it, is not worth it! :(
so what does an auto major do ? General Motors said today that it is ending truck production at four plants that build full-sized pickups and SUVs and is considering "all options" with its Hummer brand -- including a possible sale.

The moves are the result of high gas prices, which GM now views as a permanent market condition, CEO Rick Wagoner said.
GM also announced it will add a third shift to its small-car plant in Lordstown, Ohio. GM will be building an all-new Chevrolet compact car at the Lordstown plant. Finally, GM's board of directors has approved the production funding for the gasoline-electric car, the Chevrolet Volt, Wagoner says. "In other words, the Chevy Volt is a go" Wagoner said in a teleconference before the company's annual meeting today in Wilmington, Del.
Wagoner said GM still intends to put the Volt for sale at the end of 2010 and to build it at its plant in Hamtramck, Mich

Strategic assessment for Hummer brand
Finally, GM is undertaking a strategic review of the Hummer brand to determine its fit within the GM portfolio. At this point, the company is considering all options, from a complete revamp of the product lineup to a partial or complete sale of the brand.

Read more at http://www.autonews.com/article/2008...455137809/1176

Last edited by madan80 : 3rd June 2008 at 19:31. Reason: Added some fries!
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Old 3rd June 2008, 19:40   #2
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Bound to happen. It took longer than expected, that all.
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Old 3rd June 2008, 20:00   #3
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Maybe Ratan Tata will go for the Hummer brand also.
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Old 3rd June 2008, 20:25   #4
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Quote:
Originally Posted by supremeBaleno View Post
Maybe Ratan Tata will go for the Hummer brand also.
I think Mr Tata might let it go. He already has a hand full from JLR acquisition.

IMHO M&M will be leading the Indian Bandwagon this time.

cheers:
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Old 3rd June 2008, 20:39   #5
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It is sad news. i read it in IBNLive too

Oil prices hit automakers; GM closing truck, SUV plants
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Old 3rd June 2008, 21:06   #6
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I'm not sure they'd sell what is basically a US army vehicle to a competitive interest.
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Old 3rd June 2008, 21:23   #7
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Originally Posted by alexrabbi View Post
It is sad news. i read it in IBNLive too

Oil prices hit automakers; GM closing truck, SUV plants

Indeed it is. The only hope of owing a pickup truck was outside india. Now even they seems to be going out of the market due to increase in oil price...
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Old 3rd June 2008, 21:34   #8
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They had it coming, with the fuel prices soaring sky high there is really no room for gas-guzzling vehicles. The Hummer H2 has a fuel efficiency of around 8-10 miles/gallon (4 km/litre).
"Because it has a gross vehicle weight rating over 8500 lbs, the US government does not require it to meet federal fuel efficiency regulations. Hummer isn't even required to publish its fuel economy"

Found a funny kinda site related to Hummer H2 http://http://www.fuh2.com/

I'd like to own a H1 though !

Last edited by GTO : 4th June 2008 at 09:31. Reason: Cant allow inappropriate references.
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Old 4th June 2008, 00:15   #9
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I think GM should jack up the prices of the Hummer and only sell it in small numbers, kind of making it a niche vehicle.

For your other off-road/towing purposes, you have your regular Tahoe/Silverado/Suburban etc. which can pretty much do the same job as the Hummer H2 and H3.

But it'll be really sad if some aspiring Chinese company buys over the brand and starts selling their trucks as Hummer.
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Old 4th June 2008, 00:25   #10
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Quote:
Originally Posted by theMAG View Post
I'm not sure they'd sell what is basically a US army vehicle to a competitive interest.
Nope, it ain't a US army vehicle. The H1's military version was the army vehicle but the production of the civilian version of the same has been stopped & the US Army is sure as hell not going to use the H2 or H3 for combat duties!

And anyway, the US Military is already evaluating/developing options to retire the HUMVEE altogether.
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Old 4th June 2008, 00:28   #11
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iragman,

I'd meant the scenario if they decided to sell its entire technical underpinnings and license hook, line and sinker.
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Old 4th June 2008, 05:41   #12
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Thumbs down Hummer H3T

According to Automobile, GM's not done with the Hummer yet.
They're introducing a horrendous Hummer pick-up with the same fuel guzzling technology!

Read about it here -> 2009 Hummer H3T - Latest News, Features, and Reviews - Automobile Magazine
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Old 4th June 2008, 12:46   #13
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The WSJ has reported that US vehicles sales declined 10.7% in May, the result of a plunge in truck sales. GM's sales fell 27% to 268,892 vehicles. That pulled GM's market share down to 19.2%, the lowest level in at least 50 years.

Truck Sales Sink, Shaking Up Auto Market - WSJ.com
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Old 4th June 2008, 12:55   #14
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Some significant landmark events in US during 2008:
1. Detroit 3 share falls for the first time below 50%. It was 74% in 1996.
2. GM's share declines below 20%. It was 31.4% in 1996. When it hit 29% in 1998, GM's top execs. used to put a 29 sticker on their coats implying that they will not let their US share go below 29%.
3. In May 2008, Toyota was only 11586 vehicles behind GM. The gap was 102209 in May 2007. Only a matter of time before Toyota becomes no. 1 in the US. Of course, it also has problems, but unlike Detroit 3, it sells less SUVs/trucks. During 5M2008, while car sales declined 0.2% (yoy), light truck sales declined 15.8% (yoy).

GM considers selling Hummer. EDIT : Sold to a Chinese Company-document1.jpg

Last edited by vasudeva : 4th June 2008 at 13:00.
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Old 4th June 2008, 15:18   #15
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This is such a typical knee-jerk reaction from GM; I dont know what the heck they were thinking when this news was let out. Hummer is one of the few high value brands that GM has left. It is also one that commands instant recognition and, as has been proven, customers are willing to pay a premium for. Okay, so gas prices are high and everyone is shifting to more economical options. So? Does that mean you get rid of the iconic Hummer brand overnight? Did Mercedes, BMW, Toyota etc. etc. announce that they will stop making their gas guzzling SUV's (of which there are plenty)?

Lets look at what the real problem is:

1. Low Fuel efficiency : Zimple....get a competent diesel! A 3.0ish liter modern common-rail turbo-diesel will give it grunt, as well as become easier on the owners pockets.

2. Size : Focus on engineering, not only loading the slabs of thick gauge metal up. Make the next generation's Hummers lighter and smaller. This will lower the running costs while the smaller size will invite an all new market segment.

3. Lower cost : Going further on point no.2, a lighter, smaller and lesser imposing Hummer will logically result in a lower price point. This will certainly expand the brands market share. Small to midsize SUV's still sell, and are the best selling.
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