Downshift at GM puts brakes on Hummer H1
Saturday, May 13, 2006
Downshift at GM puts brakes on Hummer H1
All assembly of the gas guzzler ends in June, but the smaller H2 and H3 will still be produced.
David Runk / Associated Press
DETROIT -- The 2006 model year will be the last for the Hummer H1, the hulking, gas-guzzling status symbol that has attracted celebrities and off-road enthusiasts, but has drawn the ire of environmentalists.
General Motors Corp. announced plans Friday for the H1, which is the foundation for the automaker's Hummer brand.
Based on the military's Humvee, the about 12,000 put on the road since 1992 defined the Hummer name.
"It's a reflection of where we're going with the Hummer brand," Hummer general manager Martin Walsh said of the decision. "The Hummer DNA still resides in the Humvee. ... It will always be the core from where we come."
GM expects the last H1s to be built next month.
Walsh said Hummer plans to focus on models with broader appeal, instead of the niche-market H1. Since taking over the Hummer name in 2000, GM has introduced the still hefty H2 and a midsize H3 sport utility vehicle.
The H1 gets about 10 miles per gallon, but Walsh said rising gas prices didn't factor into GM's decision. He noted that H1 buyers typically have been less sensitive about gas prices than most other drivers.
Auto analyst Erich Merkle with the Grand Rapids consulting company IRN Inc. said the decision fits with steps GM has taken to bring the Hummer brand to more mainstream drivers with the H2 and H3.
"They're going to continue moving Hummer in that direction," Merkle said. "It's a great brand. There is a lot that can be done with that in terms of leveraging its ruggedness and toughness."
Merkle added that the kind of drivers who buy the H1 don't worry about things like gas prices.
"It's really one of those over-the-top vehicles," Merkle said. "It doesn't really have much of a place in everyday society." The H1 attracted well-heeled drivers looking for a military-style vehicle with an intimidating stance. For the 2006 model year, the H1 was offered as a high-performance H1 Alpha that costs about $130,000 to $140,000.
Last year, GM sold 374 H1s, down 16 percent from 447 in 2004.
AM General, which builds the H1, H2 and Humvee in Mishawaka, Ind., said in a statement that it doesn't plan to cut any jobs as a result of the decision. GM said workers there were expected to be shifted to military production.
Downshift at GM puts brakes on Hummer H1
All assembly of the gas guzzler ends in June, but the smaller H2 and H3 will still be produced.
David Runk / Associated Press
DETROIT -- The 2006 model year will be the last for the Hummer H1, the hulking, gas-guzzling status symbol that has attracted celebrities and off-road enthusiasts, but has drawn the ire of environmentalists.
General Motors Corp. announced plans Friday for the H1, which is the foundation for the automaker's Hummer brand.
Based on the military's Humvee, the about 12,000 put on the road since 1992 defined the Hummer name.
"It's a reflection of where we're going with the Hummer brand," Hummer general manager Martin Walsh said of the decision. "The Hummer DNA still resides in the Humvee. ... It will always be the core from where we come."
GM expects the last H1s to be built next month.
Walsh said Hummer plans to focus on models with broader appeal, instead of the niche-market H1. Since taking over the Hummer name in 2000, GM has introduced the still hefty H2 and a midsize H3 sport utility vehicle.
The H1 gets about 10 miles per gallon, but Walsh said rising gas prices didn't factor into GM's decision. He noted that H1 buyers typically have been less sensitive about gas prices than most other drivers.
Auto analyst Erich Merkle with the Grand Rapids consulting company IRN Inc. said the decision fits with steps GM has taken to bring the Hummer brand to more mainstream drivers with the H2 and H3.
"They're going to continue moving Hummer in that direction," Merkle said. "It's a great brand. There is a lot that can be done with that in terms of leveraging its ruggedness and toughness."
Merkle added that the kind of drivers who buy the H1 don't worry about things like gas prices.
"It's really one of those over-the-top vehicles," Merkle said. "It doesn't really have much of a place in everyday society." The H1 attracted well-heeled drivers looking for a military-style vehicle with an intimidating stance. For the 2006 model year, the H1 was offered as a high-performance H1 Alpha that costs about $130,000 to $140,000.
Last year, GM sold 374 H1s, down 16 percent from 447 in 2004.
AM General, which builds the H1, H2 and Humvee in Mishawaka, Ind., said in a statement that it doesn't plan to cut any jobs as a result of the decision. GM said workers there were expected to be shifted to military production.
posted by Walking Contradiction at 2:19 PM
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