Hummer - Why Was the Hummer Production Stopped?

Hummer was a division on GM which sold trucks and large SUVs. GM purchased the company in 1998, in hopes that it would appeal to younger buyers who wanted a strong-looking, large SUV. However, the brand never took off because of many drawbacks and GM started to look for a buyer. It seemed like they had found one in 2009 in Sichuan Tengzhong Heavy Industrial Machinery Company, but the deal fell through in the last minute. This left GM with no other choice but to stop production of the brand.

The Downfall of Hummer

The Hummer was never a big seller for GM, and in its later years they tried to freshen the brand up by introducing a new model, the H3. However, sales fell flat on both the H3 and the older H2. The SUVs were large, in fact they were much larger than other vehicles marketed as large SUVs. This made them harder to park, drive and fit in buyer's garages. Their extremely large size also posed a serious threat to smaller vehicles if involved in a collision. Fuel economy of the Hummer models was horrendous as well. The H2 averaged around 12 miles per gallon, and that was if the driver was taking it easy on the throttle and not hauling anything around.

The H2 weighs more than 6,000 pounds, making it illegal to drive on many roads in the United States, though this law was rarely inforced. The Hummer is also not a very safe vehicle, due largely do that all models are classified as a Class 3 truck. This makes them exempt from many of the strict safety regulations that the DOT places on cars. The early H1 model also lacks basic safety features such as side air bags, stability control and child safety locks. All three models also have extremely large blind spots which can easily cause accidents when parking, backing up or changing lanes. All of these attributed to the Hummer having extremely weak sales numbers, even when they were discounted during sales.

GM's Attempted Sale

By 2008, GM was near bankruptcy and was looking to trim back on brands. Hummer was one of the first brand put up on the chopping block due to its poor sales. GM started to look for a buyer as it was clear that with rising gas prices, having such a large SUV did not make sense for most people. It seemed as if Mahindra & Mahindra, an Indian automaker, was going to buy part of Hummer in late 2008, but the deal fell through. In 2009, GM continued to look for buyers but were still building Hummers, even though hardly any were selling. Societe de Participation Financiere Eidos Canada Inc. put in an offer to buy Hummer in 2009, but they also backed out after talks broke down. Finally, GM tried one last time to sell Hummer, but talks broke down once again. By this time GM had filed for bankruptcy and had no choice but shut Hummer down for good.

Hummer - Why Was the Hummer Production Stopped?

Hummer H3 Part

Hummer - Why Was the Hummer Production Stopped?

Hummer - Why Was the Hummer Production Stopped?
Hummer - Why Was the Hummer Production Stopped?

Hummer H3 Part