The Rise and Fall of the Hummer

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There are many consumers worldwide that will be shocked to hear about the fact that Hummer have made the decision to close down. There are many reasons, however, that this decision had to be made, and although fans of Hummer will be saddened to hear of its fall, there will be many more people that will be celebrating the demise of this brand.

General Motors, the company that owns Hummer, were originally intending on selling the brand, as opposed to halting production altogether. The idea was to sell Hummer to Chinese company Sichuan Tengzhong Heavy Industrial Machines Company. When this deal fell through, and no other buyers for the brand presented themselves, General Motors were left with no other choice but to close down Hummer, in order to save the company from bankruptcy. General Motors are no stranger to having to close down brands recently, as they have had to lose Pontiac, Saturn and are in the process of winding down Saab, also. The closure of these brands means that General Motors can concentrate on some of its more popular and prestigious brands, Cadillac being amongst these.

Not only is the fact that Hummers are known for having such poor fuel efficiency, but as mentioned above with fuel prices reaching all time highs recently, economic decisions about just how fuel efficient a new vehicle is will firmly be in the forefront of buyers minds. When it comes to fuel, not only are people fretting economically speaking, but with climate change becoming a big concern in many a motorists mind, the environmental worries that come with owning a vehicle that would contribute greatly to their carbon footprint makes Hummers less appealing to the every increasingly environmentally concerned car buyer.

Environmental worries and climate change are not solely to blame for the decline in demand for individuals, but they are also partially the reason why the sale of Hummer to Tengzhong fell through. The Chinese government had the last say in the sale, and the decision to disallow Tengzhong from buying Hummer was partially due to the environmental impact that this would have on the country. China also didn’t want to place too much reliance on importing oil from other countries. Perhaps other governments could learn from this.

Hummers have always been a vehicle that has gone in and out of fashion. With their distinctive styling, it is easy to understand that some people are never going to be a fan, but with vehicles coming and going in fads the disinterest in Hummer over recent years could be put down to the fact that they are simply less coveted in their appearance. Since people want to buy a vehicle that will impress others, a Hummer is stained with the environmental stigma and certainly does not look as good as a Land Rover Discovery or Porsche Cayenne either. With some people being very passionate about climate change and carbon footprints, it is easy to understand that they may not want to be preached to about their choice in car, and do not want to cause friction between themselves and family members who are worried about the environmental impact of these vehicles.

The decision to close down production of the Hummer comes at a time when interest in new vehicles all round is at a low. Since the world recession hit, most consumers are more likely to keep the cars that they currently have in order to save their money on things like 4wd road tax increases, car insurance and additional insurance costs such as gap insurance. The inclination to try and pinch pennies also means that, where buying a new vehicle is concerned, people are more likely to purchase one which is friendlier on the pocket than a Hummer. Not only is this true in terms of the cost to buy one of these vehicles, but also to run one. Well known for being “gas guzzlers”, consumers are unlikely to want to buy a vehicle for which they will incur massive monthly fuel bills. During March and April 2010 European and British motorists have seen rapidly increasing fuel prices thanks in part to Govt. fuel tax increases and a reduction in Middle East oil stock piles. Over a long period of time, the costs of running a vehicle like a Hummer no longer make sense in a world where car buyers are increasingly turning to alternative fuelled vehicles. Maintenance and fuel costs, taxes and the current economic climate, all help to play a role in the demise of the Hummer.

There are many different reasons as to why Hummer has had to be closed down by General Motors, but one thing is definite; there may well be more people celebrating this loss than mourning it.



Source by Stephanie Andrew

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