Fresh off announcing the HUMMER H3 and H3X wil both get a larger displacement I-5 motor producing 242hp, 242 lb. ft of torque the pricing was released on the H3X. The H3x which arrives on dealers lots in August will carry a sticker of $38,065.

Those interested in viewing what's standard on this customized off-roader can view the press release at the link:

http://www.thegmsource.com/forums/in...?showtopic=122

 

I don't have much time to read through all that but unless the "x" designation is denoting some seriously nice upgrades, 38k startking MSRP is waaaaay too expensive compared to the vehicles it competes with.

 

Yep. Seems GM's gone back to smoking the pricing weed.

 

As best as I can tell it's just an appearance package on a 4WD H3 with leather.

38 grand for something with the same drivetrain and mostly the same chassis as a 20k dollar Colorado? I don't think so...

Not to mention as far as I see that 38 grand still doesn't include things like side and curtain airbags (optional), nav (optional), etc... I'm guessing at the very LEAST that price will be capable of surpassing 40 grand... maybe closing in on 45 grand.

The H3 by most people's perspective competes with, say, the FJ Cruiser from Toyota. A vehicle that with every option on that H3 including side and curtain airbags, except onstar and nav (not available)... is still only 28.x

 

The H3 is selling well, as far as I remember, so why not add options and then add the price? Also remember the H3x is optional not standard. If you don't feel it is worth the price then just don't order it.

 

I won't - but in the mean time I'll feel free to comment on its overinflated MSRP, just as you would on any other make or model that you'd never choose to order in a hundred years.

The overinflated MSRP has more than one reason for significance. Not only is it not going to sell well at that price (IMO) but it's backward progress for GM's whole value pricing program. They're either going to make that a very low volume production vehicle specially for those who want to be able to tell people they bought a 40 thousand dollar H3... or they're going to slash prices, much like that had to on, say, the Silverado SS, before they could sell a more reasonable volume of them.

 

Using that reasoning, I guess most people wouldnt want a Lexus ES3xx, would they? The part you are leaving well out of this equation is the BRAND. Certain brands have the appearance of luxury or prestige -- and that alone carries a premium; like the Hummer over a Chevrolet, or a Lexus over a Toyota. I'll at least give GM credit for making a half-assed effort at making the H3 look remotely dissimilar to the Coloraro/Canyon. Unfortunately, Toyota didn't feel the need to do that with their ES sedan.

 

Point taken and even I was considering that when I made my original post. I still see it as different. The H3 isn't such a bad deal per se if you want a vehicle like that, but this H3x adds a whole lot of fluff - some nice stuff, but nice stuff you could add to a regular hummer all the same - and charges a hefty premium for it.

Lexus doing that is different from GM doing that primarily because - well, Toyota isn't currently struggling to convince the market that it's offering solid vehicles for the dollar. When Lexus charges 35 grand for an ES350 that has its roots in a 20k dollar 4-cyl base model Camry, people feel comfortable spending the extra money (if they want to/can) because they feel assured they'll be getting an appreciable difference for it.

On the other hand when GM turns around and marks up the already somewhat overpriced (by many profesional reviewer standards - not just my opinion) and adds what amounts to mostly appearance items and fluff, and passes the 40 thousand dollar barrier - people start questioning things...

In terms of differentiated looks, which is not that important to me but I understand it is to the average joe. GM had to differentiate the look between the Colorado/Canyon and the H3 due to the strong branding image they paid good money for when they more or less took over the hummer brand.

 

Acutally you will see that I don't complain because something has an overinflated MSRP. MSRP is what it is because that is what the company that makes it thinks the market will bear. And typically for a Hummer it is exactly what the person will pay, or it may be less. Hummer is likely the safest GM division that can dictate MSRP because it has prestige, wheather it deserves it or not is up to the buyer but that is for them to decide not YOU. I am sure that I could complain that the Scion TC is overpriced, I mean the structure dates back what 5-6 years, and it really doesn't offer anything the competition doesn't at the same price.

Hummers are typically loaded with aftermarket items like grill guards and lights by the time they leave the dearlership, and people pay the aftermarket and dealers a pretty penny for them. And why because that is what people want. Hummer doesn't need any value pricing, it is a premium brand afterall. I don't expect to large of a discount on SAABs either because they are a premium brand as well.
The H3 is Hummer's volume truck and it is selling quite well now, though that might change with a HD Hummer truck coming soon and a new H2. The H3 was actually selling above the category line when fuel prices started to rise. I see no trend to indicate that things will change.

GM isn't trying to convince the majority of the market either, remember GM has had a larger marketshare than ANYONE for 70+ years! And it currently holds about 24% of the US market, and with its sales being above all others for such a long period I imagine that approximately 40% of the vehicles on the road are GM. And while the interior may not have soft touch plastics and the electronics might be shared across brand lines they DO hold up quite well. And typically when I see a late model GM for sale in the paper it has 100K+ miles on it, some in excess of 200K+! And typically when I see a late model Toyota for sale its miles are quite a bit less. That may mean nothing or it could mean that Toyota buyers are upgrading their cars more often, why I am not sure maybe they didn't like what they had. Perhaps we shall see what things look like in a few years.

 

Holy freakin' tangent, batwoman!

Regardless of that giant tangent you just took, GM is struggling to hold or at least minimize marketshare loss at the moment. One factor they've been trying to correct is their habit of intentionally or unintentionally overinflating prices only to be corrected with rebates.

 

So no comment on the rest of my post?

 

You basically stated that Hummer, unlike most of the rest of GM, is not having an issue with perceived value, as well as that Hummer customers expect to and like to pay lots of money for what amounts to mostly tack-on accessories.

I disagree with the first part. Have no comment on the second but I guess I can see where that crowd is coming from - same crowd that will pay 20 grand for a Scion xA after all their dealer installed options and not realize they still paid 20 thousand for a 13 thousand dollar econo box.

Oh and regarding sales - of course the H3 is the best selling hummer - it's the cheapest one to buy. Almost every car brand made in the history of man has seen its cheapest car also be its best selling car (or if it has many cheap cars - one of its cheapest). With trucks and the gas crisis at the moment the H3 gains extra appeal as it gives that hummer 'image' without quite the MPG hit.
And lastly the H2 isn't exactly a bargain either considering it can get over 70k when well equipped. Especially now that the 900s are out... that looks particularly crazy.

 

Any comment on the H3 sales rising after price hikes? Whereas most midsize, and fullsize for that matter sales flattened or dropped?

 

I'd have to see your sources with actual numbers and dates attached to them to comment on that.

 

To quote this GM Press Release

You can do a search for H3 sales to find the part I quoted.

Also

HUMMER H3
April YTD as of April
2006 2006
3,952 16,582

May Sales
Delivery as of
May 2006 YTD as of May
3,418 20,000

Seems like 40K per year is a good volume for a $35K niche Lux SUV.

Edit: going to bed will finish this discussion tomorrow.