Thursday, February 25, 2010

The end of Hummer

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As reported in The Times, the attempt by General Motors to flog its ailing Hummer brand to the Chinese has failed.



Sichuan Tengzhong Heavy Industrial Machinery, with no experience of vehicle manufacture, had agreed to buy Hummer for $150 million. However, the deal needed approval from the Chinese government. They, in the end, weren’t too keen because it didn’t fit in with their nascent green policies.





The chance of finding another buyer appears slim. Of course this is awful news for those working for Hummer and its dealers, but the unfortunate reality is that it’s the free market at work.



Economic meltdown and rising fuel costs have severely affected many people’s wish to buy an SUV. The current need for SUV drivers to withstand the withering looks and snide comments, freely offered by those of an environmentalist bent, hasn’t helped either.





Hummer was hit especially badly, and sales in 2009 fell a massive 67% to around 9,000 units. Its products had become largely irrelevant. Hardly anyone needed the range’s off road ability, and one of the few unconvincing concessions to improved fuel consumption was the availability of a 3.7 litre five cylinder engine for the H3 (instead of the usual 5.3 litre V8). Petrol-powered, of course - no diesels here.



The vehicle that started it all, the military-spec Humvee, is unaffected by the demise of Hummer and will continue to be built by AM General.



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