2010, the end of Hummer (Business Week)
#11
02-24-2010, 05:51 PM
The downside for any buyer is perception. Hummer has been tagged as a brand of excess, of anti-tree hugging, of a gas guzzler sucking up all the oil in the world nonsense.
GM never controlled the message, PR wise. That is why, we as Hummer owners see vandalism to our vehicles. Sneers when we drive.
I believe that some 12,000 H1's were sold. 152,939 H2's through 2009. 156,791 H3's through 2009.
2010 production started up 11/10/09 and ended 1/17/10. I think some 2100 units are out there.
I can't see AM General being a buyer, only because they do not sell straight to the consumer, they live by contracts with cities and governments.
This is a tough division to make profitable, given the current economic climate and this administration will be pleased they helped kill Hummer.
Hummer would need to sell far more than they did in their best year to be considered profitable.
Word is that a private equity firm might help get a buyer, that would include the Chinese company, but would not have to get Red China's approval.
GM never controlled the message, PR wise. That is why, we as Hummer owners see vandalism to our vehicles. Sneers when we drive.
I believe that some 12,000 H1's were sold. 152,939 H2's through 2009. 156,791 H3's through 2009.
2010 production started up 11/10/09 and ended 1/17/10. I think some 2100 units are out there.
I can't see AM General being a buyer, only because they do not sell straight to the consumer, they live by contracts with cities and governments.
This is a tough division to make profitable, given the current economic climate and this administration will be pleased they helped kill Hummer.
Hummer would need to sell far more than they did in their best year to be considered profitable.
Word is that a private equity firm might help get a buyer, that would include the Chinese company, but would not have to get Red China's approval.
#12
02-24-2010, 05:56 PM
It makes me sad to see two governments feel so strongly about killing a car brand basically cause of its fuel consumption. When the brand has had better performance over all then alot of the other cars and trucks out there. I really hope someone saves this brand, out of all the trucks I have drove and owned the hummer has been best truck I have ever had.
#14
02-24-2010, 09:21 PM
Red China I get. It is a communist country.
But what the hell business does the Obama administration have in this? Why is the idiot in chief still holding onto this company and forcing an ATT idiot to run it?
GM is now owned by the people who killed it, the unions. 60%. Whatever skin we have in this needs to be thrown out into the market (read sell the taxpayers shares and get our money back and give GM back its sovereignty).
Hummer is an amazing brand. As American as you can get. And I am partial because it saves my family's life. It is street tested as far as I'm concerned. (H3 is not battle tested).
Chairman Obama is holding onto GM to force them to build these imaginary green cars, what's next freaking unicorns.
Livid that they will be going the way of Oldsmobile, Pontiac, Plymouth, etc.
This is wrong.
But what the hell business does the Obama administration have in this? Why is the idiot in chief still holding onto this company and forcing an ATT idiot to run it?
GM is now owned by the people who killed it, the unions. 60%. Whatever skin we have in this needs to be thrown out into the market (read sell the taxpayers shares and get our money back and give GM back its sovereignty).
Hummer is an amazing brand. As American as you can get. And I am partial because it saves my family's life. It is street tested as far as I'm concerned. (H3 is not battle tested).
Chairman Obama is holding onto GM to force them to build these imaginary green cars, what's next freaking unicorns.
Livid that they will be going the way of Oldsmobile, Pontiac, Plymouth, etc.
This is wrong.
It makes me sad to see two governments feel so strongly about killing a car brand basically cause of its fuel consumption. When the brand has had better performance over all then alot of the other cars and trucks out there. I really hope someone saves this brand, out of all the trucks I have drove and owned the hummer has been best truck I have ever had.
#17
02-24-2010, 11:48 PM
Rebranding
Hummer can be turned into a profitable company. I work in advertising and there is a term we use for this type of situation. It's called "rebranding."
Hummer has been wrongly labeled by Hippies and liberal politicians. These people are clueless when it comes to what the American people want in their vehicles. Hummer's are no less fuel efficient than most GM and Ford SUV's and pickups. Couple that with the proven fact that they are the most capable off road vehicles available to the American consumer and you have real potential. And like I said earlier, Hummer's are reliable, rugged, and very unique. That's a winning combination.
When you work in advertising you learn that image is EVERYTHING. GM sat idly by and let this brand get trashed by people who have no clue about automobiles. People that have no clue about what American's want, and what American's NEED.
American's don't want to drive Toyota Prius' and Honda Civic's. Sure they are nice to have around when you go on a long trip due to the money you save on fuel costs. But when you need to haul some large items or get somewhere during a snowstorm, that Toyota Prius quickly becomes useless. And they aren't very safe for your family either. My family has two automobiles, one is very fuel efficient and the other is the Hummer. They serve duel roles.
With the right marketing, rebranding, and overall support Hummer has the serious potential to become profitable. It will take a year or two to get out of the red, but with the right company and the right people Hummer can be reborn.
My advice is for an American company to buy the Hummer name and sit on it for a year or two. Let things calm down for a while. And during that time a new strategy can be developed to bring Hummer back. Also, new and existing technology can be brought into the mix to make Hummer's more efficient. This time could also be used to complete the new H4 concept. Hummer could become the forerunner of the new leaner/more efficient SUV; while still preserving the essence of it's larger models, the H1 and H2.
It's an achievable goal. All it will take is time, money, and something that GM never provided Hummer, a vision.
Hummer wasn't profitable because GM didn't do anything to protect the brand and its image.
Hummer has been wrongly labeled by Hippies and liberal politicians. These people are clueless when it comes to what the American people want in their vehicles. Hummer's are no less fuel efficient than most GM and Ford SUV's and pickups. Couple that with the proven fact that they are the most capable off road vehicles available to the American consumer and you have real potential. And like I said earlier, Hummer's are reliable, rugged, and very unique. That's a winning combination.
When you work in advertising you learn that image is EVERYTHING. GM sat idly by and let this brand get trashed by people who have no clue about automobiles. People that have no clue about what American's want, and what American's NEED.
American's don't want to drive Toyota Prius' and Honda Civic's. Sure they are nice to have around when you go on a long trip due to the money you save on fuel costs. But when you need to haul some large items or get somewhere during a snowstorm, that Toyota Prius quickly becomes useless. And they aren't very safe for your family either. My family has two automobiles, one is very fuel efficient and the other is the Hummer. They serve duel roles.
With the right marketing, rebranding, and overall support Hummer has the serious potential to become profitable. It will take a year or two to get out of the red, but with the right company and the right people Hummer can be reborn.
My advice is for an American company to buy the Hummer name and sit on it for a year or two. Let things calm down for a while. And during that time a new strategy can be developed to bring Hummer back. Also, new and existing technology can be brought into the mix to make Hummer's more efficient. This time could also be used to complete the new H4 concept. Hummer could become the forerunner of the new leaner/more efficient SUV; while still preserving the essence of it's larger models, the H1 and H2.
It's an achievable goal. All it will take is time, money, and something that GM never provided Hummer, a vision.
Hummer wasn't profitable because GM didn't do anything to protect the brand and its image.
Last edited by jasonus03; 02-24-2010 at 11:50 PM.
#18
02-25-2010, 05:32 AM
Senior Member
Join Date: Dec 2009
Location: UK (formerly Chavlamabad, Arabia)
Posts: 110
GM went bankrupt because it wasn't selling enough cars for enough money to break even. That isn't the government's fault. It is only in the hands of the government because GM failed, and Hummer was a part of that.
I agree that H3 has better or equal fuel economy to other SUVs. But who's fault is it that most people perceive them as gas guzzlers? Surely that is a failure of Hummer's marketing and PR, not of the government.
The US government has already poured money into the auto industry with scrappage schemes etc. Its bailed out the banks too. Do you want a country where the economy is largely run by government and no business is allowed to go bust?
Jason, I largely agree with your view. I hope someone buys Hummer and makes the required changes. I hate the fact that it'll no longer be around.
Its time to stop blaming the government. Companies go bust for a variety of reasons... in Hummer's case I think it was a combination of poor management (slow to adapt to rising fuel prices, plus wider financial problems at GM) and perhaps it was a brand of its time, and times have changed?
Last edited by Rajul_Al_Hummer; 02-25-2010 at 05:56 AM.
#19
02-25-2010, 07:09 AM
I have an H3 2006. I had several Pontiac Fieros a few years ago, and more recently a Ford Taurus SEL.
Eventhough the Fieros were about 20 years old, and had been discontinued in 1986 repair parts were still available at a slight premium. However, their value and that of the Taurus were more depreciated since they had been discontinued.
If the company who made an electric version of the Hummer at greater than 100 MPG, or similar company took the brand over they could have a real winner. Let's hope that something like this happens.
Eventhough the Fieros were about 20 years old, and had been discontinued in 1986 repair parts were still available at a slight premium. However, their value and that of the Taurus were more depreciated since they had been discontinued.
If the company who made an electric version of the Hummer at greater than 100 MPG, or similar company took the brand over they could have a real winner. Let's hope that something like this happens.
