I hear the same media sound bites repeated in youtube docs. Economy tanking, rising gas prices, terrible design. The people who make the vids likely never owned, have driven, or were prob in diapers when the vehicle released. Find it hard to believe anything outside this forum. Anyway OG Hummer owners what led to fall of Hummer brand in early 2000s?

 

The automotive crisis of the 2000s, particularly impacting the U.S. "Big Three" (General Motors, Ford, and Chrysler), stemmed from a combination of factors including rising fuel prices, the 2008 financial crisis, and the industry's over-reliance on SUVs and trucks. This led to a significant decline in sales, production cuts, and ultimately, government bailouts for GM and Chrysler.

Here's a more detailed breakdown:
Factors Contributing to the Crisis:

• Rising Fuel Prices:
  .

The early to mid-2000s saw a substantial increase in fuel prices, making large, fuel-inefficient vehicles like SUVs and trucks less appealing to consumers.

• Shift in Consumer Preferences:
  .
• Consumers began to favor smaller, more fuel-efficient vehicles, often imported from foreign manufacturers.
• 2008 Financial Crisis:
  .
• The financial crisis led to a collapse in credit markets, making it difficult for consumers to obtain loans for car purchases. This severely impacted auto sales, causing a drastic drop in demand.
• The Big Three's Focus on SUVs and Trucks:
  .
• The "Big Three" had heavily invested in the production of SUVs and trucks, which became less popular as fuel prices rose. They were slow to adapt to the changing market and lacked a strong lineup of fuel-efficient vehicles.
• High Labor Costs:
  .
• The U.S. automakers faced higher labor costs compared to their foreign competitors, including wages, benefits, and pension obligations.
• Declining Reputation:
  .
• The Big Three also faced criticism for their reputation for lower quality and reliability compared to some foreign manufacturers.
  
  Consequences of the Crisis:
  • Massive Sales Decline:
    Auto sales plummeted, with the industry seeing a 40% drop in sales in late 2008, according to the National Archives (.gov).
• Production Cuts and Job Losses:
  Automakers were forced to cut production and lay off workers due to the sharp decline in sales.
• Bailouts:
  In late 2008, the "Big Three" sought government aid, and GM and Chrysler ultimately received substantial bailouts to avoid collapse.
• Corporate Restructuring:
  As part of the bailout, GM and Chrysler underwent significant restructuring, including job cuts, plant closures, and brand eliminations (like Pontiac, Saturn, and Hummer).
• Increased Competition:
  The crisis highlighted the need for the U.S. auto industry to become more competitive, focusing on fuel efficiency and innovation.

In Conclusion: The automotive crisis of the 2000s was a period of significant challenge for the U.S. auto industry, forcing major changes and restructuring due to a combination of economic downturns, changing consumer preferences, and the industry's own strategic missteps.

 

What happened later was GM put the HUMMER brand up for sale. The way I heared it was... Some rich Chinese guy made an offer for $140 Mill for the rights and Dies and the whole shebang. GM was ready to sell BUT the Chinese Government said No to the deep pocket guy. Then the guy decided to buy some small island off of China somewhere to build the plant. But by then, GM changed its mind and decided to hold onto the Name Plate and park it for the future.
Now that's the way I got it from the news back in the day. I could be wrong but I won't admit it.

 

Don't forget about the CAFE standards mandated by the government. Corporate average fuel economy. Fortunately under the current administration that's pretty much over with. But in order to meet a certain average mile per gallon of their entire production fleet, they had to limit how many gas guzzling vehicles they made. I don't recall the exact numbers for GM, but literally in order to sell one pickup you had to sell four or five economy cars. This limited number of pickups and SUVs being produced is what caused the huge price increase for those vehicles. The supply of new pickups for example was far less than the demand. With the CAFE requirements gone, they can ramp up production of what people really want which should result in more competitive prices.

Once we become energy independent again and fuel prices drop, I suspect/hope the Hummer will be back with an internal combustion engine yet again.... LOL, Which falls in line with Arnold Schwarzenegger's famous phrase, "I'll be back"

And if not.... It will become quite the investment vehicle.

 

I mainly blame the market crash in 2008. I am in the motorcycle business and the lack of cheap easy money for toys from HELOC's, really hurt a lot of industries, Boats, Bikes, Hummers.

 

Funny the comments about it becoming an investment vehicle, I daily drive my 2003 and wonder if this will be like my square body blazer, a daily thats now a collectable and selling at the big car auctions, I still see low mileage h2's for sale and wonder if I should be buying and hording them

 

The way I see it ..is that we should hold onto our rigs. And maybe even buy some that might be in bad shape less body damage. Those of us who have a shop or a place to work on the Mark could just over time fix up a few and hord them. I bet GM will come out with a Gas or Diesel Version amd maybe use the body from the current E/V or redesign the body.

Let AM General build them as they had a plant next door to the HUMVEE line where they built the H2. I see the HUMMER coming back less the E/VGack. That's My $.02 Worth.

 

Was there any reputation damage that caused the downfall of the Hummer like what happened to Pontiac Fiero? I still hear comments from clown world. Guessing its leftover propaganda from 2,000s. Maybe, better question is did Hummer H2 propaganda have an effect on downfall?

Thank you everyone for your comments, very informative to hear from the OG legends on the board.

 

yeah the tree huggers where going around and defacing the hummers. they used the hummer as the poster child for the reason of global warming.

 

I remember on the news at one or two dealers in California.... They set them all on fire. But as we all know, those were "peaceful demonstrations", right?