Wednesday, July 9, 2008
GM Needs to Sell Hummer
In 1979 AM General began developing the Humvee for use by the U.S. Military, it would replace the small, outdated Jeeps. In 1992 AM General started selling these huge Military vehicles for around $30,000. In 1999 AM General sold the Hummer Brand to General Motors, but they were sold as AM General Hummers until 2002. The Hummer H1 was brought out in 2002 and was made until 2005. In 2006 for the final year of production GM made a $100,000+, 300hp H1 Alpha. GM quickly realized that H1 was too impractical and expensive to appeal to many people and in 2003 brought out the Hummer H2. The H2 was built off a Chevy Tahoe chassis, but was wider, taller, and looked like an inflated H1. The H2 sold a lot in the first year or two, but even with a new, more efficient engine for 2008 it has completely lost its appeal with $4.00 a gallon gas. The H2 has always been a horrible truck, but now that it is still based off the old Tahoe when for less money you could have a new redesigned Tahoe Hybrid or GMC Yukon Denali. The Hummer H3 was brought out in 2006 and was fairly successful because of its tough looks, reasonable price, and how other people thought it was a $60,000 H2. The H3 was built off the Chevy Colorado and had its 22ohp 3.5L I5 engine. That engine was too underpowered for the H3's wieght, it took 11 seconds to get to 60mph and could get stuck off road because of not having the power to get over things. For 2007 the engine was changed to a 3.7L and had 22 more horsepower. The H3's chassis is another problem, it was designed for an inexpensive truck and therefore drives worse than pretty much any new vehicle. Gas mileage on the H3 is still less than 20mpg and the 295hp 5.3L V8 H3 Alpha gets worse gas mileage than a Chevy Suburban. The H3 was also bad in the frontal crash test by IIHS, it only got an acceptable and it was rated poor for whiplash protection. The only good part of the H3 is that with the V8 Alpha version it is better off road than the H2, but is still worse off road than a Land Rover LR2, Nissan Pathfinder, Nissan Xterra, Jeep Wrangler Unlimited, Jeep Grand Cherokee, Toyota 4Runner, and Toyota FJ Cruiser. The simply can't compete on road, off road, and in a crash with any of those SUV's and new H3T pickup won't be any better. Hummer isn't making money for GM and unless they make a car based, fuel efficient, practical, inexpensive, and safe crossover they won't, but that wouldn't work as a Hummer since none of the Hummers have those traits. GM can't afford to keep Hummer anymore, so they have sell it before the lose too much money on it.
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