What will happen to HUMMER?

[kristi]

Gas is going for $3.23 in Long Beach, CA.

Companies with extensive line-ups like Toyota can evolve to declining consumer base -- compensate for a loss in Sequoia sales when people start buying more Priuses. Then gradually phase out the largest vehicles. But HUMMER, it seems, is so limited that it might see a quick end.

What do you predict will happen to HUMMER as gas prices reach and exceed $3.00 a gallon? Will they go under, or evolve to survive?

[mchastek]

Great question, Kristi. Hummer has had an interesting few years. They used to only offer the H1 (at $100,000+). When GM bought the company, they introduced the H2, which was a huge success. They now have an even smaller H3. Hummer dealerships have had a hard time moving vehicles in the recent past because of the gasoline prices. How much longer can it last? If you buy an H1 for $100,000, you might not care if you have to spend $80 to fill up the tank. But if you're driving in a $35,000 Hummer, you probably will!

[kristi]

Great question, Kristi. Hummer has had an interesting few years. They used to only offer the H1 (at $100,000+). When GM bought the company, they introduced the H2, which was a huge success. They now have an even smaller H3. Hummer dealerships have had a hard time moving vehicles in the recent past because of the gasoline prices. How much longer can it last? If you buy an H1 for $100,000, you might not care if you have to spend $80 to fill up the tank. But if you're driving in a $35,000 Hummer, you probably will!


I just saw a commercial that uses the story of "Goldie Locks and The Three Bears" to get across the message that the H3 is "juuuust right". In a light and humorous 90 second spot (or so) the Three Bears' home has been lived in, the baby bear's bed slept in, but worst, the baby bear's H3 was stolen from the garage. The spot ends on a close up of a voluptuous, 25 year old, supermodel "Goldie Locks" driving away.

Hummer's change seems reminiscent of BMW's "Right Sized" SUVs: The X3 and X5 and several manufacturers' attempts to re-label SUVs neat things like "Sports ACTIVITY Vehicles". Oookay.

If Hummer keeps making smaller vehicles, while they may be reacting to consumer pressures that demand their vehicles fit through drive thrus and be more affordable to fill up--will they be "betraying" their original brand identity of building macho, butt-kicking tanks for civilians?

[DMD]

I can't remember where I heard this but I heard just a few days ago Hummer is very healthy at the moment mostly because of the success of the H3. I am not 100% positive about this but I believe the sales numbers of Hummer are about 80% or so ahead of last year due mostly to the newly introduced H3.

[mchastek]

I can't remember where I heard this but I heard just a few days ago Hummer is very healthy at the moment mostly because of the success of the H3. I am not 100% positive about this but I believe the sales numbers of Hummer are about 80% or so ahead of last year due mostly to the newly introduced H3.

I would believe that. I see them all over the place, and the H2 as well. GM really took the H1 and made an entire product line out of it, which seems to be working for them. If they can keep the gas-guzzling image to a minimum, they seem to have a winner.

[DMD]

I don't think you need to "hide" the Hummers fuel consumption. I think the fact that it is right out in the open about its porr fuel economy is an asset rather than a problem for the product line. Obviously this is a successful tact until gas gets too expensive. But, that is one of the reasons why I have no problem with Hummers getting such low fuel economy numbers. If someone feels that its too expensive for you, either with is fuel economy or with its price tag than get a different vehicle.

I don't think that a hybrid Hummer would be a marketing success based on the fact that the market is turning into a hybrid market. Lexus, Ford, Honda, even GM with their pickups have a mild hybrid system and soon GM will have a full fledged hybrid system like everyone else will have. I feel the main reason why Hummer is and has been successful is because Hummer stands out as a different type of vehicle. If Hummer were to go "green" that would go against what many people feel has made Hummer so successful over the last 10-15 years since the initial introduction of the H1. The only way I could possibly see Hummer having a successful marketing campaign with a hybrid system is if Hummer were to offer a hybrid that was just loaded with as much hybrid power as you could tuck into the vehicle to make the vehicle a good deal more powerful than an existing Hummer powerplant. Preferrably the more power that Hummer offers, means the more of a standout the Hummer vehicles will be in the marketplace. Therefore making it a sales success just like they are at present with gas engines.

[mchastek]

I don't think you need to "hide" the Hummers fuel consumption. I think the fact that it is right out in the open about its porr fuel economy is an asset rather than a problem for the product line. Obviously this is a successful tact until gas gets too expensive. But, that is one of the reasons why I have no problem with it getting such low fuel economy numbers. You think its too expensive for you, than get a different vehicle.

I don't think that a hybrid Hummer would be a marketing success based on the fact that the market is turning into a hybrid market. Lexus, Ford, Honda, even GM with their pickups have a mild hybrid system and soon GM will have a full fledged hybrid system l,ike everyone else. I feel the main reason why Hummer is and has been successful is because Hummer stands out as a different type of vehicle. If Hummer were to go "green" that would go against what has made Hummer so successful over the last 10-15 years since the initial introduction of the H1. The only way I could possibly Hummer having a successful marketing campaign with a hybrid system is if Hummer were to offer a hybrid that was loaded with as much if not more power than an existing Hummer powerplant. Preferrably more power than Hummer can offer it and still hold the mantle for being a standout in the market that would be hard for others to copy.

That's an interesting point, and I agree with you. I think the reason the H1 was successful (relatively) was because it cost so much, and was obnoxiously huge. People that wanted to be seen (or the rare few that actually wanted to go off-roading) bought H1s, and there was a sort of elitism that went along with it.

Now, with the introduction of the H2 and H3, they've become more mass-market, but people are still buying them left and right. I think you are correct about the hybrid situation. I see the Hummer as a sort of mobile protest - if you want to give the proverbial middle finger to all of the gas-conscious, environmentalists, the Hummer sure foots the bill! Having a hybrid version wouldn't fit very well.