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3hummers -> RE: New Pics of H3T (5/24/2008 11:42:29 AM)
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Depends on which 10% they cut. If it has the removable doors, fenders, roof, look, tires, wheels, winch option at least and the capabilities they claim it will fly out of the showrooms. The H3T will do ok but I don't think will hit huge numbers. The H3, with a few improvements, H3T and HX give Hummer a few products to market and sell. If they aren't going to continue improving the H2 they could even produce it until sales reached a point where it didn't make sense. ( may already be there ) They let the H1 die which cast the aura the rest of the vehicles shared in. They have essentially killed the H2. They sell a lot of H3s based on perceptions of the big brothers but the brand won't survive with just the H3 and H3T. I understand counting beans and profit. I run a medium size company ( 400mm/year ) We are in business to make a profit but we do things that have a long term view also. We did rehab work for basically breakeven for 3 years to get in with one particular client. We did 100mm with them last year. We had to invest in the relationship and work it awhile before we were able to develop it into the profit center we wanted. I have a VP, PMs and a section of the accounting department dedicated to doing things the way this client wants it. We do things differently for our own projects but we cater to the clients needs and wants. We now make a very healthy profit from this relationship and it actually helps fund our own development efforts. GM/Hummer need to invest in the brand and the client base if they want to build the brand. If they want to be short sighted then they will tank the brand in a few years and will have wasted the entire investment of time, money and energy. This is getting long winded but as an example I offer up the Corvette. 300 units the first year and only a few thousand the first several years. Production problems, quality issues, etc. Many at Chevrolet wanted to kill the car off. Gradually they tweaked the car to the point it became a world beater and they have produced the car for 55 years now. production is still low and the profit has to be minimal for GM but the car has an aura about it that enhances the image of the entire organization. Is the Corvette the best sports car in the world...no. But it is the best sports car value in the world and GM has benefited across the lines from the R&D done for the Corvette. GM already has the worlds best off road brand and vehicles. How long does it take and how much does it cost to get to be the best in the world at anything? GM is already there with Hummer. It may not be a huge money maker but it can enhance the image of the entire company if handled right and make a profit. Only a short sighted bean counter would throw all that away.
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