GM Killing Hummer Brand As Sale to Chinese Co. Falls Through
By John O'Dell February 24, 2010
It was sort of sad when General Motors killed Saturn - the Aura hybrid was a fairly nice car and the brand was in line to launch GM's first-even plug-in hybrid SUV, a car that now has been moved to the Buick stable for next year.
2010 Hummer H3 - the pickup version is pictured here - is EPA rated at 15 mpg, but typically delivered around 12 miles a gallon.
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And we were glad when the plan to close Saab down was obviated by Dutch sportscar maker Spyker's a last-minute rescue.
We won't be sad to say goodbye, though, to Hummer.
The brand does make really great off-road vehicles, but GM marketed it to a demographic that spends a lot more time cruising Hollywood than cutting trail in the hills.
And a shiny 12-mpg boulevard cruiser isn't the kind of vehicle that needs to be pushed out there, no matter how much profit each made for the General.
Hummer sales nosedived as gas prices topped $3 and then $3.50 in 1998 and never recovered - GM's bankruptcy didn't help and the company's recovery plan called for it to sell its nonperforming assets, so it put Hummer on the block.
The best offer came from a Chinese heavy equipment maker - Sichuan Tengzhong Heavy Industrial Machines Co. - that wanted to branch into passenger car sales with an image vehicle and though the Hummer lineup would be a great fit.
But Beijing nixed the deal this week and without another option GM has already started shutting down its bad-boy brand.
About 3,000 employees will be affected, principally in dealerships and at Hummer plants in Indiana and
"We have since considered a number of possibilities for Hummer along the way, and we are disappointed that the deal with Tengzhong could not be completed," said John Smith, GM's vice president of corporate planning and alliances.
The automaker now will "work closely with Hummer employees, dealers and suppliers to wind down the business in an orderly and responsible manner," he said.
No deadlines for shutting down production or closing dealerships has been announced, and we can't in good conscience recommend this, but we bet that - if you just really gotta have one - now would be a good time to go Hummer shopping.
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