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Monday, March 30, 2009

The End of the GM Hummer on Tuesday?

by Calculated Risk on 3/30/2009 10:28:00 PM

From the NY Times: A Dealer’s Big Bet Is on the Line as the Hummer Falls From Favor

Sales of Hummers over all have fallen so far — 51 percent last year, the worst drop in the industry — that General Motors is trying to find a buyer for the brand. Without one, the company might close Hummer. An announcement about Hummer’s fate may be made Tuesday.

“It’s a brand that represents a lot of what people want to get away from,” said Rebecca Lindland, an analyst with the research firm I.H.S. Global Insight.
If Hummer is closed, it would be phased out “rather quickly,” G.M.’s president, Frederick A. Henderson, said last month.
And from: Humbling a Giant
For too long, [GM] sold too many models, under too many brands, in too many markets — with too few customers.
The task force ... said Monday that G.M. had to drastically pare the broadest lineup of products offered by any car company.

“G.M. has retained too many unprofitable nameplates that tarnish its brands, distract the focus of its management team, demand increasingly scarce marketing dollars, and are a lingering drag on consumer perception, market share and margin,” the task force said in its report.
Instead of cutting eight brands down to four in the United States, G.M. may be left with Chevrolet and Cadillac.
There is much more in the 2nd article about the downsizing of GM. The Hummer will probably be history tomorrow.