Filed under: SUVs, HUMMER, Earnings/Financials
GM: HUMMER sale "urgent", done by early '09
HUMMER, a brand that has seen its sales drop by a shocking 40% so far this year, is apparently burning an SUV-sized hole in General Motors' pocket. Main money-man at the biggest American automaker, Fritz Henderson, says that GM wold like to rid itself of the brand as quickly as possible, saying that its sale is being approached "on an urgent basis." The time frame given was by the end of this year or early 2009 for a completed transaction. So, who would want the brand that represents wretched American excess? We have no idea, but it seems that somebody does as Henderson reiterated that the General's been approached by multiple suitors. Interestingly, these comments were made in India, a country that had previously been rumored to have two separate bidders for the HUMMER brand. Considering the growing sentiment for small cars in the U.S., it wouldn't be surprising to see HUMMER sold to a company that does most of its business outside America.
[Source: Reuters via Hummer Guy, photo by Grant McDonald | CC2.0]
Reader Comments (Page 1 of 2)
geo.stewart 1:04PM (9/03/2008)
Arabs and Russkies...
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mike 1:09PM (9/03/2008)
BIG mistake, Hummer has almost 100% brand recognition.
Short term they need to increase the price, make it more exclusive, give the buyer more perks, take a short term loss.
Long term (1-2 years from now and on) make sure that Hummer gets better MPGs, Diesel, Mild Hybrid, Volt tech.
Also, COME ON. These Hummers go for 50+K, i do not think that these people care about gas price.
And yeah, try to find a few up and coming rappers and give them a few free Hummers.
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Pete 1:15PM (9/03/2008)
If that was the case then Cadillac and BMW wouldn't be abandoning their V8 programs. Even the rich care now, not so much for the money, but for the social suicide/environmental impact these vehicles represent.
I would love to own a new H3T, but I just don't have the funds for a vehicle like that at this stage in my life.
I am a avid off-road enthusiast and am very sad to see this brand die like this.
Alex 1:18PM (9/03/2008)
"Also, COME ON. These Hummers go for 50+K, i do not think that these people care about gas price."
Then why have their sales dropped so dramatically with the rise of gas? I would be willing to bet most who buy hummers are not actually multimillionaires but rather people who want to appear to have more than they do. Buying or most likely leasing a car like the hummer was a stretch and now its just an impossibility for many with the uncertainty of gas prices.
Yar 1:20PM (9/03/2008)
"Even the rich care now..."
No, the middle class who want a nice car but can't afford to run a nice car are the ones who care. Gas isn't THAT expensive.
Pete 1:24PM (9/03/2008)
Yar, your reading comprehension SUCKS!
mike 1:24PM (9/03/2008)
@ Alex
I see your point dude, but i think something can be worked in here, instead of a sale or death something can be done.
GM needs to keep Hummer on life support for say 6-7 months, after that the economy is bound to recover, also those loans may come thru, people will adjust to paying more and the cycle for the redesign will come, and that is there they can rework the car and give it at least 2-3 MPG improvement.
alex 1:59PM (9/03/2008)
@ Mike
Yeah I think it’s a bit of a knee jerk reaction, personally I'm not a fan of Hummer but at the very least from a marketing standpoint they have an identity and a following. I always thought they could do better if the could shed the d-bag show-off in the mall parking lot image and become known more for serious utilitarian off-roaders. Honestly the only Jeep that isn't crap in my opinion is the wrangler, its not huge, you can rip the top off and hose it down or at least you could. Why not change Hummer over to some smaller, fun off road trucks like that?
kballs 4:15PM (9/03/2008)
I agree they could keep the brand and equip it for the future with the right moves:
1. build smaller Hummers (H3 size)
2. lose some weight, why does a Hummer have to weigh so much more than it's base platforms?
2. use direct injection turbo or turbo diesel and new transmissions (6 speed AT) for short term to boost MPG into the range of other small/mid-size CUVs/mini-utes
3. use e-flex long term (way better efficiency, 4 electric hub motors = no diffs = no need for lockers = superior off-road performance/traction/articulation)
That said, GM sees it as a short term business decision:
1. Hummer is their brand with the biggest decline in sales
2. the brand still has worth so will bring in cash to help slow GM's bleeding
3. they don't have the immediate cash to take the above steps to help the brand survive (even if they did they don't see mildly/moderately boosted MPG drastically boosting Hummer sales) - right now they're focusing everything on the Volt and e-flex
4. they probably see it as harder to boost their CAFE numbers if they retain the brand
5. maybe they think it's possible they could buy the brand back in a few years for cheap?
PJ 6:58PM (9/03/2008)
IMO, it wouldn't matter how small or fuel-efficient Hummer managed to make its products, its 15 minutes would still be up.
GM took pains to build up Hummer's image as a builder of in-your-face, conspicuously consumptive f*ck-you-mobiles that will GET YOU NOTICED, because that was what moved metal five years ago, when the majority of people were still pumped about the war, among other things. Fashion encompasses attitudes in addition to aesthetics, and the one Hummer embodied is now unpopular.
Frankly, a decent marketer would have recognized the transient nature of products like Hummer and put the wheels in motion for a sale two years ago.
DP 1:14PM (9/03/2008)
Good Riddance!
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JP 1:18PM (9/03/2008)
Huge mistake...........but that's what GM does alot. The H3 is an awsome suv. it gets just under 20mpg yet GM never says that? The H2 is more for the high end buyer and it does not mater what it gets per gallon. No one gives the finger to the Lexus Lx or Range Rove or S-Calss or bentely Buuyer????? The H4 would have been a home run. Just like when Ford sold Jaguar.......the new owner got all the praise for the Best Jaguar in years...it was designed by Ford? The sooner Hummer is sold the better. GM does not have a clue how to make an awsome product like Hummer work. I hate to say it but if Toyota ever had it ........it would not be for sale right now. GM you screwed up shutting down Oldsmobile just after you invested Millions on new Olds Products........yet Buick servived? Now the Step child of GM, Hummer is your next slaughter......... A real shame. Jeep will have my business, until the new owner of Hummer steps up.
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Pete 1:23PM (9/03/2008)
You're so off it's silly.
Silver 2:00PM (9/03/2008)
"No one gives the finger to the Lexus Lx or Range Rove or S-Calss or bentely Buuyer?????"
Perhaps because these vehicles wouldn't necessarily turn me and my family (and my car) into a puddle on the road when overrun by a woman driver chatting on her cell phone like the H2 would?
Yar 1:21PM (9/03/2008)
Dumb move, and a knee-jerk reaction. Hummer is too iconic to sell.
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Torrent 1:28PM (9/03/2008)
+1.
Silver 2:02PM (9/03/2008)
Iconic in all the wrong ways.
The world is changing.
Cornholio 2:36PM (9/03/2008)
What Silver said - negative brand image around Hummer is huge.
Having a well recognized brand doesn't mean it leaves positive impressions on consumers....
John 2:49PM (9/03/2008)
Yes, dumb move. Hummer has great brand awareness and is an exceptional off road vehicle.
I get sick and tired of all the high and mighty self righteousness people spouting off about the evil Hummer. Sorry, some of us don't want to eat granola and drive a Prius.
tdiYUZER 3:20PM (9/03/2008)
I completely agree with JOHN... The H3 is an amazing off-road vehicle... you can climb almost any driveway in the city.
People are not buying $50k hummers for off-roading, they were buying $50k Hummers b/c the bank said they could afford a $49K vehicle.