Hummer Division sale

GM announced today that they are looking for a buyer for their Hummer division. Robby has two more years on the Hummer Dakar contract, so I wonder what impact this eventual sale will have on his West Coast operation.

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Permalink Reply by Mike/WC77 on July 16, 2008 at 11:05am
If Hummer is sold, Robby will re-body the 2 trucks with another GM product ie: Chevy Tahoe, or the new Chevy Traverse...
It sucks, because here we go back to the aero drawing board. Lot of devolopment time in the crapper.
Permalink Reply by Turtle7 on July 16, 2008 at 11:26am
Hi Mike/WC77 - After seeing your reply, if I remember correctly, the reason that GM chose Hummer to run in Dakar because they were trying to penetrate the upscale Euro market with the H3. If they continue in the Dakar and just want to advertise for Europe, the only two SUV like vehicles that Chevy current sells in Europe are the HHR and the Captiva that is based on the Saturn Vue platform. Cadillac sells the SRX and the Escalade. There are no Buicks listed for the Euro market. All GM's other Euro products are from Opel, Vauxhaul and Saab. Both the Chevy Transverse and the Tahoe may be considered too large for Europe with their higher gas prices.
Permalink Reply by FlyHiFlyLo on July 16, 2008 at 12:07pm
Either way whoever buys Hummer will also buy the obligation to Robby Gordon Offroad. So... I really don't see a contract buyout because it also includes technical support. Also, I just don't see any buyers... Maybe Harley Davidson or Polaris?
Permalink Reply by TOG on July 16, 2008 at 7:52pm
Expect alot of changes from companies in all forms of racing. Thats a given. The teams who have nickel and dime deals with manufacturers are really going to feel the pinch.
Permalink Reply by IndyTim on July 17, 2008 at 9:20am
I'm not so sure GM is going to be able to find a buyer for Hummer...well.....they will find Bidders, but GM would only get "Pennies" on the dollar. My guess is GM will either Scrap the line, or make it more Fuel efficient and try and spike demand. Probably won't be an issue anyway....I don't think in 2years GM will even exist. Severley strapped for cash and there is nobody left to finance more debt for them. Really sad as there are many families who depend on GM to pay bills and put food on their table. Many years of bad decisions have finally caught up to them......Knowing what I know (or claim to) regarding companies, balance sheets and debt financing...If I owned a Race Team and my Power Plant was a "Chevy"...I'd sure as hell be working on plan B......
Permalink Reply by TOG on July 17, 2008 at 9:29am
yet they will still probably give Hendrick,RCR and Stewart/Haas all they need.

If GM is sincere in trying to save the company and cut costs, it's a no-brainer to take a couple of year sabatical from sponsoring anything,aside from TV and Print ads. GM could advertise on thousands of internet sites for a fraction of the cost of their racing sponsorships. besides, the GM car I see on the track isn't the one I see in the showroom,nah mean ?
Permalink Reply by WJM on July 17, 2008 at 12:21pm
A couple of the intents of the COT was to reduce costs and create more parity which it has accomplished neither. It has also alienated the manufacturers by reducing brand and model design uniqueness to the grill opening and decals.
Permalink Reply by IndyTim on July 19, 2008 at 12:15pm
Yeah...near term I don't think Hendrick/RCR/Stewart are going to see less support. GM is already in a pickle in terms of needing good PR..pulling the rug out from under these teams would seal the "Public Opinion" deal for them....

However...GM is going to have to recover with what they have...they have been borrowing from Peter to pay Paul and Peter is no longer loaning...and Paul is wanting a step up in payments.

I think 1 of 2 things happens with GM......#1. They pull through with what they have #2 They go into Bankruptcy (which will be the end) and all the creditors force liquidation of assets...which means companies like Toyota get to come in and buy what they want for pennies..........

just my take
Permalink Reply by Terie (aka vassinvegas) on July 17, 2008 at 10:28am
I'm sure our government will bail them out as they did Chrysler many years ago. I don't see anyone letting an icon in our business world go out with a wimper. They need to cut unprofitable lines, strealine the operation and they will make it. They just need to hang in until people stop being terrified to spend money. My son just bought a new GM car and it's still a quality product. All of the Detroit manufacturers are in financial trouble. Not the first time nor will it be the last.
Permalink Reply by Mike/WC77 on July 17, 2008 at 2:45pm
OK, heres the things I can tell you guys. GM sponsors RG off-road, not Hummer, so RG's contract with GM will stay in tact no matter what happens to Hummer. As for the body choices, I'm just goin by what "the man" told me. The Traverse is on a "global platform" which is replacing the Trailblazer line. So while it may not be in Europe yet, it will prolly make its debut in a year, or so.
As for GM, theres been rumors as far back as 2005(when I was selling them), that GM will streamline the whole corporation. Do something like combine common lines. Example the Tahoe, intead of having the LS,LT,LTZ,Z71& theGMC Denali line,& the Escalade, You would have available the Z71, Denali,& Escalade, all under the GM umbrella. Eliminating any extra cross brand models.
This would go for all cross platformed cars,& trucks. Second option, Toyota has made what I understood to be a standing offer to bail out GM, for a majority ownership.
Don't think it could happen? Heres a few examples of the relationship. 1. Take a look at the TRD small block in NASCAR, it's a knock-off Chevy small block. 2. Pontiac Vibe/ Toyota Matrix cross platform. 3. Let's go back a way's the Chevy/Geo Prizm,& Toyota Corolla cross platform, even further back the 1980's Chevy Nova was some kind of Toyota,I just don't remember which one.
Oh,& BTW guys, when I'm speculating, I'll let ya know.
Permalink Reply by WJM on July 17, 2008 at 3:38pm
To re-body the Hummer as a Traverse would make more global sense. Of course, like you said before, all the hours spent on refining the aero on the Hummer is flushed down the toilet. The Hummer was as aerodynamic as a brick, whereas the Traverse looks pretty sleek SUV-wise.

I think one of the mistakes GM has made is adhering to their penchant for building multiples of the same vehicle preserve a dealer body that was obsolete 30 years ago. GM really needs only two divisions; Chevrolet and Cadillac. Maybe GMC for the heavy duty truck market.

The FWD Chevy Nova was also a Toyota Corolla. Both were built at the Fremont, CA NUMMI plant that currently produces the Corolla, Tacoma pick up and Pontiac Vibe.
Permalink Reply by Mike/WC77 on July 17, 2008 at 3:54pm
Yeah, I *think* just from eyeballin, the 2, they're pretty close on wheelbase size also. That'd be nice so the changes could be made in the body, without hugely affecting the factory resemblence.
As for the the division markrting, personally Ithink GMC is the biggest waste of material, being they're EXACTLY the same as the Chevy HD's. Pontiac has a good foothold in a different mkt then Chevy, So it makes sense to keep them. Let's face it Buick's mkt is on the "last time buyer program", the same way Olds was several years back. Tiger Woods can only sell so many, & it's only a matter of time before Buick gets the axe. Saturn's new attitude styling could easily be moved into the Pontiac division. Saab, the next odd man out. So yeah, that would leave GM with Caddy, Chevy,& Pontiac, that woud help thin the herd. I'd still love to see that Hummer HX concept make it to the street....or trail, maybe as a Chevy.

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