Hummer soldiers on

GENERAL Motors is continuing its aggressive sales and marketing campaign for Hummer in Australia, and is asking dealers to upgrade their facilities to showcase the American ‘military truck’ brand, despite its uncertain future with a strategic review taking place in the US.

Hummer dealers in the US have told overseas media that GM management is holding discussions with a number of potential suitors. According to reports, GM is considering three options – a full sale, a joint venture and a complete revamp of the brand.

In Australia, GM Premium Brands director Parveen Batish told GoAuto last week that it was business as usual for Hummer Down Under, sales for which “levelled off” to 85 units last month after averaging almost 150 per month in the first four months of 2008.

“There is a strategic review on Hummer, so there isn’t a decision to sell the brand. The review is, obviously, looking at all the options available – so that’s selling it, producing newer, smaller productions, and more environmentally friendly products,” Mr Batish said.

“There is no foregone conclusion that the brand is going to be sold. It’s going through a strategic review – and that could go either way.

Left: GM Premium Brands director Parveen Batish.



“We are continuing our activity as though nothing has changed. We are continuing with our marketing, we are continuing discussions with dealers to redevelop, et cetera, so we are continuing with all our activity. There has been no drop off at all.

“There are other issues in the US to do with the decline in their large SUV market and the large truck market, which have made an impact. But as far as we’re concerned, we’ve had a great launch of Hummer, and sales have been going very well.

“We’re still getting enquiry for it (but) obviously whenever you get speculation in the press as to what may happen, that always makes people think twice. But our dealers are still seeing customers, they’re still selling cars, and we’re really pleased with the success that we’ve had.”

Mr Batish conceded that dealers and GM Premium Brands management have had to counteract the fact that Hummer is seen as anti-environmental in Australia and overseas – a perception that stems from the bigger H2 sold in the US rather than the H3 sold here.

“Every time you see an article on petrol pricing, you see a Hummer – and Hummer is not the worst in the marketplace. I could quote you many examples of our competitors who have a worse fuel economy than a Hummer, and yet it seems to be Hummer that’s portrayed,” he said.

“It’s easy to sensationalise with Hummer because it’s a big car. It’s easy to sensationalise with Hummer because it’s an American car, and everybody expects it to have bad fuel economy. And actually it doesn’t – at 13.8L/100km for a large SUV, that’s average. That’s not bad. Okay, it’s not fantastic. But it’s average in that industry.”

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