Hummer sales decline
June 9, 2008 by Alborz Fallah
Hummer sales have started to decline worldwide, leading to suggestions that GM might drop the brand altogether. The main cause is fuel prices, with some analysts estimating it could hit $2/litre by year’s end.
To add to Hummer’s worries, GM CEO Rick Wagoner has been slowly downplaying Hummer’s role at GM. One American analyst went as far as to say “Hummer is the fat man in the lifeboat who might be tossed overboard”.
The biggest loser might be Hummer dealers worldwide, although Australian dealers all are linked with SAAB and GM Premium, having a new-to-Australia marquee already under threat does not instil confidence in the product. However with Cadillac expected later in the year, sales are bound to increase across the GM Premium range.
In the U.S., Hummer sales have fallen 36.0 percent compared with the year-ago and 48.1 percent from the same period in Hummer’s peak year, 2006.
The story is similar here, last month only 85 Hummers where sold following a steady decline in sales since the brand’s best month in January with 166 sales.
The Hummer brand has been under the GM umbrella since 1999 when the company bought the marketing rights to Hummers from AM General in Mishawaka, Ind. GM sold a small number of H1s, based on the Humvee military vehicle, this was followed by a full-sized H2 SUV in June 2002 which become a international icon (for good or bad).
GM has only imported the smaller H3 Hummer to our shores with talk of bringing diesel and V8 variants in the future. GM Insiders say the board now sees Hummer as a liability that’s hard to sell and hard to make fuel-efficient, which is surprising given the opportunity for diesel and hybrid models in the future.
“GM has to focus on increasing profitability on volume vehicles, and Hummer doesn’t do it, there’s no such thing as a completely unredeemable brand, but the question is: What volume do they need out of it at this point for it to work?” said Jim Hall, a former GM employee and managing director at 2953 Analytics, a consulting firm in suburban Detroit.
Even if GM does decide to sell the brand, who exactly will be interested? Perhaps India’s Mahindra & Mahindra? Looking to compete with Tata Motors and their recent acquisition of Jaguar and Land Rover.
Not much is expected to change in the interim however:
“The strategic review is a very serious effort, or we wouldn’t have announced it,” said Hummer spokeswoman Joanne Krell. “But for Cadillac, Hummer and Saab, business continues as usual.” a GM Spokeswomen said.
Can Hummer survive with a range of more fuel efficient vehicles? Or does the idea of a fuel-efficient Hummer sound like an oxymoron?
Print it: 
*****PRIMO!*****
Looks like the glory days are over.
To be sold to Indians or Chinese…..groan!
Cheers
F-0
As much as i would hate to see it in Indian hands or Chinese hands but i am glade that they aren’t selling. Useless cars and junky inside. The first two the H1 and H2 where alright but TO MUCH METAL TO MOVE!!!!
Looking like all the car manufacturers will be owned by the Indians or Chinese.
while hummer sales decline in the rest of the world they are actually selling strongly here in oz. “85 Hummers where sold following a steady decline in sales since the brand’s best month in January with 166 sales” well yeah back in janurary hummer was a new brand with an amzaing amount of pre orders which contributed to that number. 85 a month for what ws thought to be a niche brand isnt half bad and im seeing more and more of them on the rads and IMO they look great. they go awsome off road and are not the plannet killers like the H2.
KP, Hummer started selling in AU as far back as in September last year.
I always thought it was a bad fit in GM’s empire. They can survive with a bit of crafty platform sharing with GM’s other products. Something that competed with the VW Tiguan could ensure their long term viability.
I don’t understand why GM brought Hummer to AU in the first place, they don’t fit.
If GM stop making the Hummer what;s their biggest customer – The US military going to use as Troop and Ammunition Carriers?
They could use the Australian Designed and Built OKE All Terrain Vehicle or maybe even the custom built “Bush Ranger” which is essentially a highly modified jacked up Range Rover as is the British “Bowler” as seen on Top Gear
it was always going to be snapped up by those buying it for its “novelty” value rather than its practicallity or merits.
if it wasnt called a “Hummer” they would have been lucky to sell their first shipment.
once the novelty buyers have made their dash, it is never going to appeal to anyone else
Oh I nearly forgot Hummers second biggest customer Mr Arnold Schewarzenegger.. he has at least 10 of them yet he wants other Californinas to drive around in smaller more fuel efficient environmentally friendly vehicles….
Compared to a Hummer a Leopard Tank is more fuel efficient
Why not it means more $$$$$$$$$$$$$$$$$$$$$$!
Like ford did with Land Rover and Jaguar! Should sell it to TATA!
I’ve heard along the grapevine that an Iraqi company, “Sudden Insane Motors” are interested in buying the brand.
The Military Hummer is about related to other hummers as Dingo is to the human race. Not very then.
I’d say get shot of it and come up with something more economical.
Golfie the captiva competes with the Tiguan matey.
Wheelnut,
The Hummer is allready being phased out by the US military. And the OKA’s unfortunately aren’t being built anymore…. Dam I’d love to get an OKA….
What a travesty of a car these things are. The sooner they rust into obscurity, the better!
It’s hilarious GM didn’t realise the Hummer was obsolete long before it was released here. It has only ever been a novelty vehicle, and would only ever be a tiny niche market for those very few that wanted a bit of peculiarity.
In an age where we all adore our creature comforts, and to achieve volume sales you must appeal to the mass market – as Toyota do so well – the crude Hummer was never going to be a volume seller.
Looks like we have the SUV equivalent of the Leyland P-76.
youre all a bunch of poofs and the only reason you dont like the hummer is if youre gay or jealous because you cant afford one. grow some balls u bunch of crying wimps.