GM said Tuesday it would close four North American plants that produce SUVs and light trucks and explore options for its Hummer brand as the automaker struggles to cope with slowing sales as consumer tastes change and gasoline flirts with $4 a gallon.
The company's Hummer brand, bought from AM General Corp. in 1998, will be the subject of a strategic review. GM said it would consider all options, from a complete revamp of the product lineup to a partial or complete sale of the brand. Of course with gas at an all-time high, interest in a low-volume business would seem limited. Additionally, smaller Hummers -- the easiest way to make them more fuel efficient -- would dilute the brand's image of a big, tough, go-anywhere vehicle. Just look at the complaints on Jeep enthusiast message boards and blogs when Chrysler introduced car-based models called the Compass and Patriot.
A sale of Hummer had been bandied about long before the spike in gas prices. Shortly after gas hit $2 a gallon, speculation started to pervade the blogosphere. Then, in 2006, Kerkorian and his representative on GM's board, Jerry York, championed the idea of selling both Hummer and Saab. They also pushed for a partnership with Nissan Renault. After failing on both fronts, Kerkorian sold his shares.
Sadly, had GM CEO Rick Wagoneer listened to Kerkorian, he might have made more money on Hummer. Putting Hummer in the garage next to Oldsmobile now seems like the best option. - Matthew Wurtzel
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Two years after financier Kirk Kerkorian agitated for a sale of General Motors Corp.'s Hummer brand, the automotive giant will consider putting the gas-guzzling SUV line on the auction block.
