Hummers: the Disappearing Vehicle
The Hummer, the GM brand of mega-car that gets 9-14 mpg, may soon become extinct. The vehicle has had a love/hate relationship with the public since its debut in the early 1990s, with owners citing its size and power as a reason to own and environmentalists labeling its fuel economy as pure wastefulness. But surging fuel prices over the past few years have prompted General Motors to close four truck and SUV plants in North America, and the automaker may discontinue the Hummer to focus more on smaller vehicles. CEO Rick Wagoner announced this change in June in response to the falling sales of pickup trucks and SUVs due to high oil prices. He also said a market shift to smaller vehicles is likely to be permanent.
Everything indicates that Wagoner’s statement is true. Hummer’s overall sales are down about 40% this year as gas prices have topped $4 a gallon at times. There were rumors that Mahindra & Mahindra Ltd, India’s top utility vehicle maker would consider buying the brand, but it turns out that they are not interested, supposedly because they are pursuing their own models which will include a line-up of eco-friendly vehicles. Other worldwide companies, Russian Motors and the Chinese Changfeng Motor Company had also held preliminary talks with GM about acquiring the brand, but also ended up saying no. The Chinese company said that the vehicle was too expensive for their military, and wouldn’t do well with civilians due to the high oil prices.
The only thing for sure is that selling the Hummer will be tough. Drivers more and more are leaning towards more fuel-efficient vehicles, and the Hummer is even less practical today than it was ten years ago during the era of cheap gas prices.
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