General Motors intends to bring back the Hummer. The idea, on the surface, may seem shocking. The Hummer developed a notorious reputation for its incredibly poor gas mileage. The costs of driving a Hummer were enormous. Poor gas mileage certainly held back sales for the vehicle. The current auto industry climate doesn’t show much appetite for a model that guzzles gas. So, GM intends to make some big changes with the new line of Hummers. New releases won’t be anything like an “old-time” gas guzzler. Shockingly, the new models will be electric vehicles.
GM intends to develop a modernized version of the Hummer. The new model will come in the form of an electric truck. The battery-powered model might not look like the original design, but the name remains. The name can, possibly, help sell the models. Consumers do like things described as “new and improved.” If improvements create a more energy-efficient Hummer, customers might take to it.
Also, the original look of the Hummer may have held it back. The vehicle looked like something more for the commercial and consumer market. The odd look appealed to some, but sales didn’t expand much beyond a niche.
Looks, however, weren’t the prime reason behind the collapse of Hummer sales a decade ago. Excess gas consumption played the most significant role. And then there was another issue. Hummers required special showroom considerations. These “considerations” added to the dealerships’ costs. Those costs, as expected, found their way to consumers. The overall cost associated with the Hummer destroyed its commercial viability. Logical assumptions were the Hummer would never return to the marketplace. Things change, technological achievements being among them.
GM could see some public relations benefits to releasing a battery-powered Hummer. The company might gain credibility as a company promoting energy-efficient vehicles. Promoting a vehicle’s energy efficiency can support an effective marketing campaign. Corporate social responsibility could translate into revenues with the right model. The aura of the old-time Hummer could increase the new version’s chances for success.
If the Hummer does make a return, it will need to sell models to as many consumers as possible. GM invested more than $3 billion in a plant in Michigan. New Hummers could come from the assembly lines at those plants. If the new Hummer fails, the plant itself could become a money drain.
The electric truck wouldn’t be the only new Hummer, either. An “electric Hummer SUV” currently exists on the drawing board. If the truck doesn’t do as well as expected, the SUV could pick up the slack. Of course, GM hopes both models become a hit, which is a possibility.
