GM Pulls the Plug on HUMMER

Robert Farago
by Robert Farago

Speaking to analysts during a conference call, marketing maven Mark LaNeve said GM "will continue working with [HUMMER] dealers on the appropriate mix of ads, incentives and dealer programs to keep them going and build franchise value." According to an anonymous source (whose information has been independently confirmed), GM has killed the HUMMER brand. The ailing American automaker told its field teams that it's ceased all corporate investment in HUMMER. This includes updates for existing models, the scrapping of the upcoming H4, and a severe cut-back or elimination of marketing and advertising– as contracts allow and media buys can be diverted to other GM brands. The decision pulls the rug from under 171 HUMMER franchisees, including 71 standalone dealers. According to our tipster, GM field ops– who must make nice with the abandoned store owners– are "crapping themselves." Why wouldn't they? Many of these HUMMER dealers have just spent millions upgrading their dealerships to meet brand requirements set forth just two years ago. The first lawsuits have probably already been filed. The rest will follow. Still, closing HUMMER should cost GM less than the billion dollars it spent shuttering Oldsmobile– although that was back when a billion dollars was real money, not GM's monthly cash burn.

Robert Farago
Robert Farago

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  • RedStapler RedStapler on Jun 04, 2008

    Its too bad, properly managed Hummer could have been a viable competitor to Jeep. I wonder if GM will try and hang on to the trademark to deny it to potential competitors. The original H1 was a relatively rare bird and ranks up there with the Wrangler Rubicon & Unimog as extremely capable off road vehicles in stock form. The H2 & H3 were poseur abominations. While they had moderate capability their weight was a significant handicap in many off road scenarios. The Top Gear hill climb challenge where the Range Rover won while the H2 self destructed was a great illustration of how marketing was writing checks the product could not cash. There will be other survivors from the great SUV extinction wave. At the high end much of the Mercedes, BMW & Rover product will survive. When you can drop $60-80+k plus on your whip you don’t sweat a $150 trip to the gas station. If put on a diet and returned to its pickup truck roots the 4Runner/FJ Cruiser could continue; If Toyota were so inclined they could build an awesome wrangler-killer.

  • Mullholland Mullholland on Jun 04, 2008

    I can't believe it! Six pages of comments and no one has figured this out. GM is getting out of the Hummer business (what's left of it) so that they can add Jeep to their stunning portfolio of brands when Cerberus cuts it loose during their big 4th of July Strip and Flip-a-thon.

  • SirRoxo SirRoxo on Jun 04, 2008

    This has made my day, one big smile plastered across my face. Way to go GM! you really do have some brains when it counts. Now just kill Buick, Saab, and GMC while you're at it.

  • Evan Griffiths Evan Griffiths on Oct 31, 2010

    This reply is to the haters posting their 2 cents about the closing of the HUMMER plants and the death of the franchise. I read most of these posts and I must say you people are idiots, the only people that can shoot this much hate towards a freakin vehicle are the one who can't afford one now and never will be able to afford something this nice later. The HUMMER is america's real tuff truck and no other can compare not to mention the off spring of a vehicle that had saved so many lives during furious confrontations and the H@ and H3 gave the public a chance to have a little part of one of the most important components of our military. Is it a gas guzzker, yeap. Is it it bigger than any family vehicle should be, indeed it is but it is also a icon of something that was independent and original not like any of the GMC's, VW's, Fords or any other car on the road, it was the one and only vehicle that was never copied or able to be challenged because any other truck stacked up against a HUMMER no matter what model doesn't even come close to comparing. The best joke I read here is the loss you will take when traded in or when you go to sell it, are you serious? Even if you find one with 100k on it you still have to pay over $30k for it and most people have their HUMMER stored because of the collectable value it has. This whole topic is a joke and anytime one of you haters would like to bring out your little sissy truck and see if your toy can go faster, stop quicker, tow more, or drive threw worse conditions please contact me cause my HUMMER and I would love to come out and play. Your supposed to hate the game not the player but I guess when you can't afford to be a player you hate both and trust me it might take another year or two but HUMMER will be back, the military and brand name is enough to reserect it.

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