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Will/should Hummer survive?

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Old Oct 21, 2007 | 12:40 PM
  #1  
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Will/should Hummer survive?

Hummer was a great idea in 1999. It offered GM a way to pedal their super-popular SUV's at an even greater profit.

But fast forward to 2007, and we have some serious problems with the Hummer concept. First of all, anyone vulnerable to economic trends (just about everyone) is no longer in the mood to spend $10-15k extra for a car that gets worse fuel mileage than a 1969 Impala.

Second, and perhaps more troubling, is the damage Hummer inflicts on the GM brand. In a world where eco-friendly is sheek and more socially desirable than ever, Hummer stands as the Archie Bunker of the auto world. Even slight improvements in fuel economy will not break down this image.

GM has two options to fix Hummer. The first is to shut it down, and essentially disavow the brand and what it stands for. It would be a punctuation mark on GM's turnaround.

Of course, this has some serious issues, those being that Hummer still sells plenty of vehicles and that GM has already invested enormously in the brand's future. Thus, I believe there is a second, better option.

In order to turn around its image as Global Warming machines, Hummer should do a complete about face. Every new product should have stunning, class leading efficiency coupled with lots of go-green advertising. Hummers should become the most eco-friendly SUV brand on the market. It's an extreme turnaround for a brand that does not even have a 20 mpg highway vehicle, but I think it's the only direction that will make the brand an asset, rather than a liability.

Thoguhts?
Old Oct 21, 2007 | 01:00 PM
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Hummer gets more conquest sales than any other GM brand.

Hummer defiantly needs some eco friendly powertrains. #1 make them all E85 w/ AFM #2 put a Diesel in every Hummer.

H2 should be transformed from a off road school bus into something of an off road halo vehicle.. Speaking of Halo how about an 4WD AWS vehicle like the one from the game.
Old Oct 21, 2007 | 01:19 PM
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I have no use for them, but that is just my opinion.
Old Oct 21, 2007 | 01:42 PM
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Thumbs down

I'm probally one of the more anti-SUV people here, but I can put aside my personal opinions when I see numbers that show I'm wrong. Dav305z, the numbers and facts don't support what you are advocating.

First off, H2 buyers aren't very affected by fuel prices. H2 sales are off only 9.4% for the month of September versus last year. There have been times when the H2 sales actually were stable when other GM makes were down almost across the board. The H3 (which is actually bought by more average people who are affected by fuel prices) did see a 25% drop in sales, but the year-to-date drop (17.6%) is identical to the Solstice (17.7%).

The entire Hummer brand is down 19.7% for the year. Buick's is down 24.7%. Ford's down 15% for the year. Even Mustang's down 17% for the year, but even the most conservative business person wouldn't advocate killing the car off.

Beyond the sales figures, as mentioned, Hummer has conquest sales at least as high as Saturn & Hummer is still highly profitable for GM. Although Hummer is a big target to some of the more extreme Greenies, it generates nowhere near the animosity that the Ford Excursion generated.

Where Hummer really needs to change course is on the lower end. The H4 was needed yesterday. The new hot selling Jeep Wrangler 4 door looks like something you'd expect Hummer to make.

You aren't going to win over everyone who espouses an eco-friendly lifestyle to celebrate Hummers no matter what you do. In fact, you're libel to draw even more adverse attention (look at the fire eco-friendly Bill Ford took when Ford brought out the Excursion, while the equally large Suburban was overlooked).

But then again, you don't have to win this group over any more than Cadillac has to win over the Honda Fit crowd. As long as Hummer is making GM money (which pays for things such as a 5th gen Camaro), and GM creates a volume model like the the Wrangler, Hummer should enjoy a long & happy life.
Old Oct 21, 2007 | 02:23 PM
  #5  
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Originally Posted by dav305z
Hummer was a great idea in 1999. It offered GM a way to pedal their super-popular SUV's at an even greater profit.

But fast forward to 2007, and we have some serious problems with the Hummer concept. First of all, anyone vulnerable to economic trends (just about everyone) is no longer in the mood to spend $10-15k extra for a car that gets worse fuel mileage than a 1969 Impala.

Second, and perhaps more troubling, is the damage Hummer inflicts on the GM brand. In a world where eco-friendly is sheek and more socially desirable than ever, Hummer stands as the Archie Bunker of the auto world. Even slight improvements in fuel economy will not break down this image.

GM has two options to fix Hummer. The first is to shut it down, and essentially disavow the brand and what it stands for. It would be a punctuation mark on GM's turnaround.

Of course, this has some serious issues, those being that Hummer still sells plenty of vehicles and that GM has already invested enormously in the brand's future. Thus, I believe there is a second, better option.

In order to turn around its image as Global Warming machines, Hummer should do a complete about face. Every new product should have stunning, class leading efficiency coupled with lots of go-green advertising. Hummers should become the most eco-friendly SUV brand on the market. It's an extreme turnaround for a brand that does not even have a 20 mpg highway vehicle, but I think it's the only direction that will make the brand an asset, rather than a liability.

Thoguhts?
Should it? Why not? Isnt the H1 going away leaving the High Mobility Multi-purpose Wheeled Vehicle (HMMWV) AM General for the military? The rest of Hummers line up seems to be a more rugged version of GM vehicles that are elsewhere in the GM line. I guess the H3 is on the colorado plat but its still GM. I think the only thing you would be doing is loosing the expertise of AM general (Which GM does not own) that you paid for. That doesnt make any sense whatsoever.

BTW GMs sales by far continue to be in trucks and SUVs. Even so I think Hummer is a small percentage isnt it?

As far as product, I think a Landrover Defender like hummer may be an excellent move though I could be wrong. Its essentially a wrangler with better preportions with out the width issues of a H1. I think this was one of the most overlooked underutilized vehicles in Fords arsonal. Drop an LS3 in that and that would be a sweet Hummer.

Old Oct 21, 2007 | 02:35 PM
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Well, at the very least, Hummer will survive for the next several years as the H4 is under development.
Old Oct 21, 2007 | 03:46 PM
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Hummer was a great idea in 1999.
This is where I disagree

GM kinda missed the boat on the whole SUV trend. By the time Hummer had ramped up with the H2 & H3, the whole thing was already on the downside and they were sticking out like a sore thumb. If they had invested that Hummer money into other products, they would have been in much better shape when gas prices started shooting up earlier this decade.

That being said, hindsight is 20-20. They've pretty much already eaten the reputation hit, and at this point Hummer is established and most likely profitable. I don't think they can really "go green", but over time I expect them to de-emphasize the ridiculous excess Arnold Swartznegger image of the brand and position it closer to Jeep as a relatively 'normal' offroader.

And similar to the Land Rover, there's also the "real" Land Cruiser LJ which we don't get here:

Old Oct 21, 2007 | 04:36 PM
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I'd like to see Hummer come up with a Jeep Wrangler competitor. Not as crude, but just as capable maybe with Heavy Duty 4-wheeel independent suspension like the H1.
Old Oct 21, 2007 | 05:03 PM
  #9  
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Originally Posted by 30thZ286speed
I'd like to see Hummer come up with a Jeep Wrangler competitor.
Essentially that's what the H4 is.
Old Oct 21, 2007 | 05:36 PM
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Originally Posted by Z28x
Hummer defiantly needs some eco friendly powertrains. #1 make them all E85 w/ AFM #2 put a Diesel in every Hummer.
E85....I think there are more problems with vehicles that burn E85 (85% Ethanol, 15% gas) than we hear about. Among other things, vehicles get significantly less mileage (>25%) with E85 vs gas.

Source: 2008 Federal Fuel Economy Guide
Old Oct 21, 2007 | 08:17 PM
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Originally Posted by Bob Cosby
E85....I think there are more problems with vehicles that burn E85 (85% Ethanol, 15% gas) than we hear about. Among other things, vehicles get significantly less mileage (>25%) with E85 vs gas.

Source: 2008 Federal Fuel Economy Guide
Yep, that's because there's less energy in a gallon of E85 than there is in gas. That's to be expected, and anyone who did their homework would know it.

Ethanol isn't about economy, it's about reducing emissions and dependence on petroleum. Per mile, ethanol is still significantly more expensive than gasoline, although government subsidies compensate for a large portion of that difference.
Old Oct 21, 2007 | 08:55 PM
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Hummer will survive. Whether it's within GM or not is the question.
Old Oct 22, 2007 | 04:42 AM
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Originally Posted by JakeRobb
Yep, that's because there's less energy in a gallon of E85 than there is in gas. That's to be expected, and anyone who did their homework would know it.
Correct. My homework assignment is above. And how many folks have done similar homework? I guess you have - good job.

Ethanol isn't about economy, it's about reducing emissions and dependence on petroleum.
And it essentially does neither (less carbon emissions from the tailpipe, but what the energy used to refine the ethanol?). It just pulls from a different trough of water - it does nothing (at all) to ween us off of our appetite for gasoline....errr....or forms there of. There are other issues too....like the increased over-farming of much of our farm land, and...

Per mile, ethanol is still significantly more expensive than gasoline, although government subsidies compensate for a large portion of that difference.
....we pay for government subsidies (all 51 cents per gallon). Lets get rid of them and let the free market decide.

Bob

Last edited by Bob Cosby; Oct 22, 2007 at 05:17 AM.
Old Oct 22, 2007 | 08:39 AM
  #14  
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Hummer is fine as-is. The H4 will be a nice addition and extension into the SUV universe, but the Hummer brand still isn't for everybody and it doesn't need to be. I, too, am no the biggest SUV advocate, but Hummer is not the anti-Christ. I'm sure GM still finds it to be profitable and it's an aspirational brand for a company struggling in that area.
Old Oct 22, 2007 | 11:23 AM
  #15  
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Hummer isn't about fuel economy, I guess that is fairly obvious. It is a status symbol and about rugged good looks.

I think it will be around for a while.

Dan



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