Sunday, August 8, 2010

GM and Hummer - a love/hate relationship


The Phantom, retired and lowering his handicap monthly, told me last night that he has heard from his old GM cronies that the H3 may not be "totally dead". Talking with some of his friends, they said GM has taken notice of the strong upsurge of truck and SUV sales and the Hummer name was tossed around. The Phantom emphasized you can't ignore the higher profitability of SUVs and that seems to be what the fickle US public wants now.

He "strongly doubts" the Hummer will be revived by GM in "any form or manner", but the name Hummer was mentioned along with strong SUV sales this summer. It probably means nothing, but The Phantom was one of the Hummers strongest supporters and I'm thinking still misses the car business. Who told us that Hummer might be sold a week before the announcement? Now that the Volt is just about to come out, gas prices continue to decline making SUVs more appealing and execs at GM worried about Volt sales, even with governement incentives.

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