2010, the end of Hummer (Business Week)
Senior Member
Joined: Mar 2006
Posts: 749
Ironic that Hummer failed at the very same time that the global warming Cap and Traders were knocked flat on their backs.
It seems that Congress is rumbling about creating a Federal Sales Tax now, likely to replace the lost revenue stream from the failed energy tax idea.
Maybe the federal sales tax will wipe out a few more brands?
It seems that Congress is rumbling about creating a Federal Sales Tax now, likely to replace the lost revenue stream from the failed energy tax idea.
Maybe the federal sales tax will wipe out a few more brands?
Thread Starter
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Senior Member
Joined: Dec 2009
Posts: 225
From: Los Angeles, CA
Obama owning GM is forcing them to unload brands.
They are keeping Buick because it is a big seller in... CHINA.
Saturn has a loyal following and that too is poof.
Hummer would have survived had GM still been a free market company.
GM has been brought to its knees by the unions. Had it been allowed to go into a true bankruptcy all those insane union contracts would have been corrected. Every car they sell comes with a union tax, upwards of 15% of the price. You can't compete when it costs you $75 per hour to build the same car your competitor is building for $30 per hour.
The blame lies with the Unions and now the Obama administration attempting to save these parasites who now own 60% of GM. Can you imagine that?
They are keeping Buick because it is a big seller in... CHINA.
Saturn has a loyal following and that too is poof.
Hummer would have survived had GM still been a free market company.
GM has been brought to its knees by the unions. Had it been allowed to go into a true bankruptcy all those insane union contracts would have been corrected. Every car they sell comes with a union tax, upwards of 15% of the price. You can't compete when it costs you $75 per hour to build the same car your competitor is building for $30 per hour.
The blame lies with the Unions and now the Obama administration attempting to save these parasites who now own 60% of GM. Can you imagine that?
I don't think you can blame the US govt for what happened to Hummer. I say this as a very happy H3 owner.
GM went bankrupt because it wasn't selling enough cars for enough money to break even. That isn't the government's fault. It is only in the hands of the government because GM failed, and Hummer was a part of that.
I agree that H3 has better or equal fuel economy to other SUVs. But who's fault is it that most people perceive them as gas guzzlers? Surely that is a failure of Hummer's marketing and PR, not of the government.
The US government has already poured money into the auto industry with scrappage schemes etc. Its bailed out the banks too. Do you want a country where the economy is largely run by government and no business is allowed to go bust?
Jason, I largely agree with your view. I hope someone buys Hummer and makes the required changes. I hate the fact that it'll no longer be around.
Its time to stop blaming the government. Companies go bust for a variety of reasons... in Hummer's case I think it was a combination of poor management (slow to adapt to rising fuel prices, plus wider financial problems at GM) and perhaps it was a brand of its time, and times have changed?
GM went bankrupt because it wasn't selling enough cars for enough money to break even. That isn't the government's fault. It is only in the hands of the government because GM failed, and Hummer was a part of that.
I agree that H3 has better or equal fuel economy to other SUVs. But who's fault is it that most people perceive them as gas guzzlers? Surely that is a failure of Hummer's marketing and PR, not of the government.
The US government has already poured money into the auto industry with scrappage schemes etc. Its bailed out the banks too. Do you want a country where the economy is largely run by government and no business is allowed to go bust?
Jason, I largely agree with your view. I hope someone buys Hummer and makes the required changes. I hate the fact that it'll no longer be around.
Its time to stop blaming the government. Companies go bust for a variety of reasons... in Hummer's case I think it was a combination of poor management (slow to adapt to rising fuel prices, plus wider financial problems at GM) and perhaps it was a brand of its time, and times have changed?
Thread Starter
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Senior Member
Joined: Dec 2009
Posts: 225
From: Los Angeles, CA
I do as well.
Modernista did a great job selling Hummer's. GM did a perfectly terrible job of controlling the conversation.
Hummer needs more than rebranding, but repositioning. Why was the hybrid Escalade engine not made available to Hummer? An H3 Hybrid would have changed the conversation. Would have revealed that since the early 90's a tiny amount of H1's, which was the halo perception of the brand, was sold.
That the H3 alone, had 5 star safety rating all around. Is affordable (it is cheaper than any Lexus or Infiniti SUV).
GM got drunk on the huge car sales of the 2005-2007 years where the industry sold more cars then ever before in their history. The entire market exploded.
Modernista did a great job selling Hummer's. GM did a perfectly terrible job of controlling the conversation.
Hummer needs more than rebranding, but repositioning. Why was the hybrid Escalade engine not made available to Hummer? An H3 Hybrid would have changed the conversation. Would have revealed that since the early 90's a tiny amount of H1's, which was the halo perception of the brand, was sold.
That the H3 alone, had 5 star safety rating all around. Is affordable (it is cheaper than any Lexus or Infiniti SUV).
GM got drunk on the huge car sales of the 2005-2007 years where the industry sold more cars then ever before in their history. The entire market exploded.
Hummer can be turned into a profitable company. I work in advertising and there is a term we use for this type of situation. It's called "rebranding."
Hummer has been wrongly labeled by Hippies and liberal politicians. These people are clueless when it comes to what the American people want in their vehicles. Hummer's are no less fuel efficient than most GM and Ford SUV's and pickups. Couple that with the proven fact that they are the most capable off road vehicles available to the American consumer and you have real potential. And like I said earlier, Hummer's are reliable, rugged, and very unique. That's a winning combination.
When you work in advertising you learn that image is EVERYTHING. GM sat idly by and let this brand get trashed by people who have no clue about automobiles. People that have no clue about what American's want, and what American's NEED.
American's don't want to drive Toyota Prius' and Honda Civic's. Sure they are nice to have around when you go on a long trip due to the money you save on fuel costs. But when you need to haul some large items or get somewhere during a snowstorm, that Toyota Prius quickly becomes useless. And they aren't very safe for your family either. My family has two automobiles, one is very fuel efficient and the other is the Hummer. They serve duel roles.
With the right marketing, rebranding, and overall support Hummer has the serious potential to become profitable. It will take a year or two to get out of the red, but with the right company and the right people Hummer can be reborn.
My advice is for an American company to buy the Hummer name and sit on it for a year or two. Let things calm down for a while. And during that time a new strategy can be developed to bring Hummer back. Also, new and existing technology can be brought into the mix to make Hummer's more efficient. This time could also be used to complete the new H4 concept. Hummer could become the forerunner of the new leaner/more efficient SUV; while still preserving the essence of it's larger models, the H1 and H2.
It's an achievable goal. All it will take is time, money, and something that GM never provided Hummer, a vision.
Hummer wasn't profitable because GM didn't do anything to protect the brand and its image.
Hummer has been wrongly labeled by Hippies and liberal politicians. These people are clueless when it comes to what the American people want in their vehicles. Hummer's are no less fuel efficient than most GM and Ford SUV's and pickups. Couple that with the proven fact that they are the most capable off road vehicles available to the American consumer and you have real potential. And like I said earlier, Hummer's are reliable, rugged, and very unique. That's a winning combination.
When you work in advertising you learn that image is EVERYTHING. GM sat idly by and let this brand get trashed by people who have no clue about automobiles. People that have no clue about what American's want, and what American's NEED.
American's don't want to drive Toyota Prius' and Honda Civic's. Sure they are nice to have around when you go on a long trip due to the money you save on fuel costs. But when you need to haul some large items or get somewhere during a snowstorm, that Toyota Prius quickly becomes useless. And they aren't very safe for your family either. My family has two automobiles, one is very fuel efficient and the other is the Hummer. They serve duel roles.
With the right marketing, rebranding, and overall support Hummer has the serious potential to become profitable. It will take a year or two to get out of the red, but with the right company and the right people Hummer can be reborn.
My advice is for an American company to buy the Hummer name and sit on it for a year or two. Let things calm down for a while. And during that time a new strategy can be developed to bring Hummer back. Also, new and existing technology can be brought into the mix to make Hummer's more efficient. This time could also be used to complete the new H4 concept. Hummer could become the forerunner of the new leaner/more efficient SUV; while still preserving the essence of it's larger models, the H1 and H2.
It's an achievable goal. All it will take is time, money, and something that GM never provided Hummer, a vision.
Hummer wasn't profitable because GM didn't do anything to protect the brand and its image.
Senior Member
Joined: May 2007
Posts: 1,158
From: Cali
Was shocked to see it here on the local news last night. I uploaded the short clip to youtube. Soo sad.
http://www.youtube.com/watch?v=Cdby-QpNMeU
http://www.youtube.com/watch?v=Cdby-QpNMeU
Junior Member
Joined: Jan 2008
Posts: 4
Sad to see it go, but I'm not surprised. I sold my H3 the minute I got wind they were considering selling to the Chinese. I wasn't sure that would happen, but if China ended up with it or they killed it, either way I knew the resale would plunge.
Senior Member
Joined: Dec 2009
Posts: 110
From: UK (formerly Chavlamabad, Arabia)
The government weren't the reason GM and Hummer failed. Ultimately they failed because they couldn't sell enough cars at a price that made them a profit - basic rule of business. This was (as others have addressed here) in part because they failed to deal with the perception of the Hummer being a gas guzzling anachronism. None of that is the fault of the government.
GM *is* trying to sell Hummer. You see the buyers lining up? Me neither.
Its tried the Chinese - that was scuppered by the Chinese govt, not the US government.
http://www.nytimes.com/2008/12/20/business/20auto.html
Ultimately Bush or Obama's actions aren't what has led Hummer to this stage. The blame lies with GM and those running Hummer.
Last edited by Rajul_Al_Hummer; Feb 25, 2010 at 02:54 PM.
Member
Joined: Apr 2007
Posts: 51
From: Indiana
I love how the unions get thrashed ,who flew to washington in the jets and asked for handouts,what kind of money did the ceo of gm make last year and the one they just fired but are keeping on as a consulant that is working 20 hours a month and getting paid 3000 thousand an hour.Whoever thrashes the union has never worked for a crooked factory that just looks for ways to f---k you day in and day out.
Thread Starter
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Senior Member
Joined: Dec 2009
Posts: 225
From: Los Angeles, CA
Not really interested in getting into words over how a free market actually works, but GM going bankrupt is a free market practice. Bailing them out is not. Nor is a so called pre-packaged bailout that screws the real creditors and awards the parasites ownerships.
Even in the good times, cash supply for GM was a problem. This lies with the Unions. Our entire car industry has been rendered uncompetitive because of the UAW. This is a handicap.
If GM had gone into Chapter 11, their contracts would have been renegotiated. End of story. It is impossible for this company to stay afloat as it stands thanks to the legacy costs owed to people who have not worked the assembly line in years. Full pay, benefits, etc. Who gets that?
I was against TARP. Against the so-called stimulus plan. Against the omnibus plan. Against the government owning private sector companies. Bush took over nothing, though he spent and did bring us TARP. In total, Bush is responsible for about $700 billion total. Obama on the other hand, spending like a drunk, racked up over $1.7 trillion to our deficit. IN ONE YEAR. Bush did his in 8.
Back to the car industry. Unless the unions are brought under complete control (and why do we even need these parasites?), GM will be a goner in a few years anyway.
So, as long as the government is involved, GM can not manage itself. It was the perfect opportunity to break the hold of the parasitic unions and allow GM to finally return to form.
Losing Hummer is sad, but what is sadder is an administration running it and our economic futures into the ground in the name of socialism.
Even in the good times, cash supply for GM was a problem. This lies with the Unions. Our entire car industry has been rendered uncompetitive because of the UAW. This is a handicap.
If GM had gone into Chapter 11, their contracts would have been renegotiated. End of story. It is impossible for this company to stay afloat as it stands thanks to the legacy costs owed to people who have not worked the assembly line in years. Full pay, benefits, etc. Who gets that?
I was against TARP. Against the so-called stimulus plan. Against the omnibus plan. Against the government owning private sector companies. Bush took over nothing, though he spent and did bring us TARP. In total, Bush is responsible for about $700 billion total. Obama on the other hand, spending like a drunk, racked up over $1.7 trillion to our deficit. IN ONE YEAR. Bush did his in 8.
Back to the car industry. Unless the unions are brought under complete control (and why do we even need these parasites?), GM will be a goner in a few years anyway.
So, as long as the government is involved, GM can not manage itself. It was the perfect opportunity to break the hold of the parasitic unions and allow GM to finally return to form.
Losing Hummer is sad, but what is sadder is an administration running it and our economic futures into the ground in the name of socialism.
GM stopped being a free market company when it went bankrupt. Successful companies with popular products don't go bust. GM went bust because it couldn't adapt to survive. That is how capitalism works.
The government weren't the reason GM and Hummer failed. Ultimately they failed because they couldn't sell enough cars at a price that made them a profit - basic rule of business. This was (as others have addressed here) in part because they failed to deal with the perception of the Hummer being a gas guzzling anachronism. None of that is the fault of the government.
GM *is* trying to sell Hummer. You see the buyers lining up? Me neither.
Its tried the Chinese - that was scuppered by the Chinese govt, not the US government.
If you're claiming the government bailouts were bad to GM, how about a mention of this one - billions poured in by Mr Bush?
http://www.nytimes.com/2008/12/20/business/20auto.html
Ultimately Bush or Obama's actions aren't what has led Hummer to this stage. The blame lies with GM and those running Hummer.
The government weren't the reason GM and Hummer failed. Ultimately they failed because they couldn't sell enough cars at a price that made them a profit - basic rule of business. This was (as others have addressed here) in part because they failed to deal with the perception of the Hummer being a gas guzzling anachronism. None of that is the fault of the government.
GM *is* trying to sell Hummer. You see the buyers lining up? Me neither.
Its tried the Chinese - that was scuppered by the Chinese govt, not the US government.
If you're claiming the government bailouts were bad to GM, how about a mention of this one - billions poured in by Mr Bush?
http://www.nytimes.com/2008/12/20/business/20auto.html
Ultimately Bush or Obama's actions aren't what has led Hummer to this stage. The blame lies with GM and those running Hummer.
Member
Joined: Dec 2007
Posts: 86
From:
unions
I love how the unions get thrashed ,who flew to washington in the jets and asked for handouts,what kind of money did the ceo of gm make last year and the one they just fired but are keeping on as a consulant that is working 20 hours a month and getting paid 3000 thousand an hour.Whoever thrashes the union has never worked for a crooked factory that just looks for ways to f---k you day in and day out.