General Motors Corp. (NYSE: GM) is finally facing the reality of $4 gas. The automaker today announced is plans to close four plants and introduce smaller, more fuel-efficient cars. More importantly, the company is considering selling its gas-guzzling Hummer brand.Bloomberg News quotes GM Chief Executive Rick Wagoner as saying that the plant closings will save $1 billion and cut North American truck capacity by 700,000 vehicles. About 10,000 jobs may be cut as the result of the closures. GM's board also approved the production of a new small Chevrolet car in a plant in Ohio in 2010 and the Chevy Volt electric vehicle in Detroit, according to the Associated Press.
Wagoner's turnaround plan for GM, which was started in 2005, has hit a brick wall. Sales of pick-ups and SUVs are plunging as gas prices are rising. GM has already shifted much of its health care costs to the UAW but more needs to be done to help the automaker remain competitive.
Among the first things that GM needs to do is to put the brakes on Hummer. The gargantuan behemoths pose a danger to other drivers unfortunate enough to wind up in an accident with them. Moreover, their gas mileage is terrible, averaging 14 miles in the city and 18 on the highway, according to FuelEconomy.gov. That seems to be at odds with the company's embrace of tougher CAFE standards and its commitment to being green. In fact, the company brags that it offers more vehicles that achieve 30 mpg, more flex-fuel vehicles that can run on E85 ethanol and a two-mode hybrid system found on GM's full-sized light trucks.
Times have changed since the Hummer was first introduced.
"After 9/11, Hummers became a cocky symbol of American greatness," writes Daniel Gross on Slate.com. "Driving the biggest, baddest, least-fuel-efficient car on the planet was tantamount to giving the finger to environmentalists, Arianna Huffington, and all those who suggested that the involvement of Saudi citizens in the attacks should lead us to rethink our dependence on foreign oil."
Americans have fallen out of love with the Hummer and fallen in-love with smaller, more fuel-efficient cars such as the Toyota Prius. GM had no choice but to respond to changing consumer tastes. Too bad it did so about two years too late.











Reader Comments (Page 1 of 2)
6-03-2008 @ 11:17AM
mark rayfield said...
To think that most owners of HUMMER H2s purchased their vehicles as an affront to environmentalist is silly. These specialized hard-working vehicles are used throughout many industries where their go-anywhere capabilities are a God-send. I've owned 6 of these H2s and, along with seventy sum-odd other 4WD snowplows we run, they kept many of St. Louis' Regional Malls, Hospitals, and Defense Dept. Facilities safe and operational through the three 10"-12" snowstorms last winter. "When you absolutely have to get there", the H2s are the finest all-weather vehicle we've found in over forty years in this business of keeping cities moving in treacherous winter weather. GM should be commended for taking the risk to create such an incredible vehicle, even though it may appeal to only a small, but very appreciative market.
The product line shouldn't be vilified simply because a writer doesn't happen to believe they're practical for picking up a few groceries on the way home from the country club.
Please Keep Up The Good Work, GM !
6-03-2008 @ 2:04PM
josh said...
Serves these lumbering dinosaurs right and all the pompous idiots who bought Hummers. All it took was $1 per gallon, look how quickly it happened and how quickly it changed the consumers perception and spending habits. Did Detroit actually not see these times coming? My guess is yes, but decided instead not to act.
Detroit has been trying to milk the SUV cash cow for all it's worth, looks like they got stuck holding the drying teet. I can't think of a better metaphor; these companies are as progressive and nimble as the overweight, sluggish and top heavy SUV's they have been pimping for years.
Way to go, big american business. Brilliant planning and foresight. What do you think of your EV-1 project now?
This is only a small sign of the troubles we face ahead and how quickly large economic paradigms can change. Everyone who has children should take the time to think of the world your grand children will live in. It's simple responsibility people, time to start actually thinking about these larger issues that actually do involve your self-absorbed luxury filled lives as much as you all blindly ignore them.
Oh yeah, and good luck selling your Hummers consumers.
6-03-2008 @ 12:46PM
cawnaz said...
The mileage on the Hummer is similar to the Chevy suburban and their other pickups. As far as getting hit by one, that are similar or worse trucks on the road. Its a specialty vehicle like Josh says.
6-03-2008 @ 1:37PM
bearmj said...
Even the military is walking away from the Hummer H1 / Humvie.
6-03-2008 @ 1:37PM
DON said...
PUT A HYBRID ENGINE IN THE HUMMER. THE TANK
HAS A ELECTRIC MOTOR ANYWAY (M3)
6-03-2008 @ 1:53PM
josh said...
Hype-brid - what joke this marketing plan is for larger vehicles. Get used to it fat cats looking for ways to make up for your shortcomings, you were had and now are stuck with a $4 soon to be $5 a gallon gas guzzeling status symbol.
6-03-2008 @ 4:18PM
HumveeOwner said...
An owner of the H3 myself, I'm constantly being approached by people curious on how well my car does on gas and after I tell them, it's an astounding "oh wow, my car does worse than that" or "it's about the same." One had a minivan and the other an Audi. To each his/her own and I for one enjoy driving in it. We are a family of five, we don't travel much with it but it does come out when we need it to. The company (GM) will have to do what's best for them and to discontinue production on them is what they have to do, then so be it. Proud to be a Humvee Owner!! Don't hate people!!
6-03-2008 @ 4:36PM
josh said...
Not hate, in these times hovering between 15-20 miles per gallon for these oversized underutilized behemoths whether it be a Hummer or a Suburban is over consumptive in the name of luxury. Nothing one can say here will change my views on this issue. This is only the tip of the ice burg report back in 2-3 years and tell me how practical your Hummer is in light of our economy and gas prices. My point is the writing has been on the wall for awhile now yet we choose to blindly continue as a mass audience without incorporating necessary changes that we WILL have to implement no matter what. This ostrich like behavior is plain stupidity, we are smarter than this and know better yet fail to address it before the crap hits the fan. It's only when we get burned that we make adjustments. That's what children do who don't know any better.
6-03-2008 @ 4:53PM
HumveeOwner said...
I don't agree it's in the name of luxury. When I think of luxury, I envision, Mercedes or BMW. When we first leased it, gas prices weren't as high as they are now and like I said it's a vehicle we use when we need to. I shouldn't have to justify the means in which we use this vehicle to anyone and I'm not looking to change your views on anything, just want awareness, we live in a society with choices, we make choices that make us happy, plain and simple.
6-03-2008 @ 5:21PM
BOlmsted114 said...
It's going to be a lot more civilized on the highways and byways as the SUV's and Monster trucks are retired to their rightful place in the junkheap of American hubris.
6-03-2008 @ 8:37PM
josh said...
"I don't agree it's in the name of luxury. When I think of luxury, I envision, Mercedes or BMW. When we first leased it, gas prices weren't as high as they are now and like I said it's a vehicle we use when we need to. I shouldn't have to justify the means in which we use this vehicle to anyone and I'm not looking to change your views on anything, just want awareness, we live in a society with choices, we make choices that make us happy, plain and simple."
If you look at the way 75% of the way the rest of the world lives owning a Toyota Tercel is luxury. When you mention we live in a society of choices do you not understand that in itself is a luxury? The big cars we drive whether they be a Toyota Tacoma, an Explorer or a Hummer IS luxury. As for awareness, yes that's what definitely need more of, but how about awareness with little less entitlement and hubris and more responsibility to the world we actually live in. Sorry HumveeOwner you happened to choose a car that is a near perfect symbol of our overall decadence, short sightedness and ego driven adult toy culture that prides itself on indulgent choices. Plain and simple it's irresponsible to those who will live in this world when you are dead. Even when gas prices were lower the Humvee was a poor choice in choosing an efficient and practical automobile. Are you saying you didn't see this day coming? What activities do you do with your Hummer that make its use imperative in your life?
Luxury is a term that changes with ones place and situation in the world. Think about it, it's time we realize America isn't the center of the universe.
I'll say it again, think about the world your grandchildren will inherit. The check we have been writing will not go unbalanced, GM's woe's are only the beginning. I feel good at least to say that I have actually been doing something in my day to day life for the past 10 years in foresight of the place I will leave behind. Our entitlement to over consume is a house of cards and a Humvee is just one of the fine symbols defining it.
6-03-2008 @ 7:37PM
christinbabygrl said...
"Sorry HumveeOwner you happened to choose a car that is a near perfect symbol of our overall decadence, short sightedness and ego driven adult toy culture that prides itself on indulgent choices. Plain and simple it's irresponsible to those who will live in this world when you are dead. Even when gas prices were lower the Humvee was a poor choice in choosing an efficient and practical automobile"
Seriously, can we get our facts straight before we start making assumptions about people and car buying choices? Don't lump all Hummer owners into one category of egoists looking to shove their "status" symbol in everyone's faces.
First of all, this owner has an H3. I have an H3. There is a big difference between an H3 and an H2 and H1. I pay the same amount in gas as my sister does in her Toyota Avalon, a sedan, mind you. Yah, it gets average mileage, but so what. So does a Toyota 4 Runner, but I don't see a bunch of bashers going after them! Why the hostility towards people who happen to like a certain style of vehicle?
Why did I choose my H3? Was it to satisfy some overblown ego? NO. I chose it because it looks cool, I've wanted one since I was a teenager, it had 5 star safety ratings, and YES I feel safe driving my 2 year old in it.
Would I sacrifice the safety of that to squeeze my family in to a gas-efficient Prius NO. Could I get a sedan that had 5 star ratings, like a Honda Civic. YES. I do like Hondas, but I wanted this car. Fact is, it was MY CHOICE. We live in AMERICA, the land of CHOICES. Worry about your own gas, we'll worry about ours.
6-03-2008 @ 10:09PM
HumveeOwner said...
Unfortunately, I can't foresee the future and hope and pray that our grandchildren will manage like we have, although hard at times, manageable. Like my parents did.
I guess we'll need to stop living our lives the way we see fit because it's going to damage what happens in the future and the future of our children. I wonder if anyone was thinking of my generation 40+ years ago. Choice is certainly a luxury and aren't you glad we live in a world that owns that, I know I do.
I can only imagine what those toyota tercel owners think of their luxury car. They may have to resort to a bicycle because they are over indulging.
"Our entitlement to over consume is a house of cards and a Humvee is just one of the fine symbols defining it."
Again, we are entitled to live our lives as we see fit and blaming all that is wrong in this world on a so-called luxury vehicle, somehow doesn't seem right.
We're a family of five and when we use our Hummer, we feel safe.
6-03-2008 @ 10:09PM
Paul Leddy said...
For all of you small car drivers, you should make sure that your grave stone reads, Died in a small car but got great gas mileage getting here...
6-03-2008 @ 11:23PM
Ed said...
God I love it when these self-loathers crap all over American products. It is like they cant wait to roll over and get stuck up the rear end by all the BS propoganda that the typical liberal spouts. They want to be the first to declare how we all suck here and how great Canada is for the health care and how great mexico is for the food or whatever. Jeeze give me a break already. I have seen just as many garbage Japanese cars as American but it is not sporting to trash them, only us and the poster child for (in liberal minds) American excess, the Hummer. Not that any of them can tell the difference between the H1 H2 or the H3, it just doesnt matter when you get your smug face in front of some camera somewhere and say America is getting what it deserves when it build vehicles such as Hummer. I will agree that the past 10 years most people buying trucks had no business in doing so. Why would a soccer mom need a F450 Super Duty Dual when she only "hauls" kids around town. Those days are thankfully gone forever. But there are people who need and want vehicles such as Hummer H2 and H3 and H4 and will pay for the fuel to run them. SO dont worry about what I do with my money. it is really none of your business anyway. Besides I have owned nothing but GM my ENTIRE life and never had the problems that people claim in their vehicles. For example, I recall some magazine ( I wont name, but is pretty liberal-biased like most ) name the older GM K5 Blazer/Jimmy fullsize one of the worst vehicles ever manufactured. I got 315000 miles out of my 1991 K5 Jimmy and 18mpg on the original drive train including the motor, trans and transfer case. Every one of my S10 Blazers managed to make it past 150000 miles and still look great with no major problems and currently own a 1997 Blazer 4x4 and 1998 Tahoe 4x4, each with nearly 195000 miles and the little trcuk gets 19 and the larger gets 16.
I admire Japanese cars for the build quality, in fact we should face the fact the reason GM Ford and Chrysler build such fine vehicles now is becasue of the build quality of the Japanese and we should thank them for it.
The point is because of relentless liberal propoganda which spill such nonsense as bitching for decades how come we dont have any cleaner fuels to use in our cars and once ethonal comes along they say it is worse that gasoline. The true goal of every card-carrying liberal in this country ( and the world ) is to make sure we walk to work. We have oil but we cant pump it, we can grow sustainable fuels but just delivering it makes more smog and whatever else crap they can think of. If you dont like Hummers fine I can deal with it but make an INFORMED decision by trying one out, looking at the real world mileage and other purposes it can be used for. Getting the best milage isnt the only reason I buy a car. I use my Tahoe and Blazer (my wife and I ) every day as what they were intended for. Hauling stuff here and there, heavy duty towing. Hauling people around comfortable. yo know my Tahoe with a 78 Trans Am on a 4 wheel crappy UHaul trailer still gets nearly 18 MPG on the highway at 70MPH? Now try towing that car with a Prius. Or if you have to take 2 or three trips in your Prius, that could have beeen donw in one trip of the Tahoe or Blazer, you didnt save any fuel or environment all have you? imagine what the junkyards of the future will look like with all there dead Priuses around after about 70k miles. Recycling those batteries will be good for the environment...mmmNNN
Now I have to run out to a Hummer Dealership and get a H3 before they are gone forever. Odds are I will be driving this through huge snow drifts when your Prius wont even start on an average winters day like they have had a habit of doing...just look at the TSBs for Prius and other hybrids. I will think of yo uguys when I am towing heavy loads with 5 people in my H3 without it groaning and overheating like the 4 runners tend to do. Get 21 MPG unlike a Land Cruiser or any other Toyaota-branded SUV and go in many more places they cant in pretty decent style..
6-04-2008 @ 7:29AM
dennis said...
what the hell is the bullshit about making cars that get better milage? In the 70's I had a 66 Ford Mustang with a 289c.i. V-8 4-speed. I was getting 26 1/2 miles a gallon. A guy came out with a carbutator that would give you 100 miles a gallon. Someone bought the patent and it was never heard of again. Now these car manufactures brag about these new LITTLE cars theat you get around 30 miles a gallon. You get no kind of milage out of the gas they're making, and very little octane. It's all just a money racket.
6-04-2008 @ 12:17PM
Randy said...
Way to go Ed,only problem is that you are talking to a brainwashed audience ,the result of the Liberal tree hugging media and 25+ years of the public schools cramming the service economy--we don't need to build anything here crap into their heads. The same people who don't think I should drive my Surburban now think I should drive a car full of batteries when getting rid of one normal battery causes more enviro hazard than a lot of things. I get 15 all the time in my Sub and 18-20 highway and I can haul a load and do it with some comfort at the same time. check the city milage on the Hybrids ,not that great. We are not getting any true info on problems and or service life of these vehicles because it is not fashonable to bash them right now. I think when people wake up a little bit they are going to realize 40-43 mpg is not going to justify the Hi-tech problems you are going to have with it. It is a short-sighted fix to a long term problem because people will buy them now. I can see these cars going the way of the Chevy Vega (the worlds first disposeable car, supposedly built to save gas, mileage sucked I know because I had one. 40K it was junk. The good thing about it was GM designed it to rust out at the same time the engine took a crap so you didn't feel bad about scrapping it) I have a buddy that had a Ford Escort diesel in the 80's with a 4cyl Isuzu engine,( if memory serves me that is what it was) that car got 50-55mpg all the time and it wasn't ugly unlike the Honda Hybrid which has to be the ugliest car since the AMC Pacer. Why aren't we building some kind of American small car with a 4cyl diesel that can get 50-60- mpg ?( answer there are still people alive that remember the Olds diesel) GM killed American Diesel cars forever or at least until were all dead. The Renewable Fuels Program is the only answer we have at the moment and the media is already starting to put the idea into peoples heads that corn ethanol and Bio-Diesel is why their grocery bill is going up. Never mind that road diesel is approaching $5 a gallon and the average OTR truck gets5.5 mpg and everything in the store probably rode over a1000 miles in a truck. Average person too dumb to figure it out lets sell them a Prius before they wake up..........
6-04-2008 @ 12:45PM
John McCulloch said...
As an 11 year owner of a HummV --- the military model; not the GM SUVs --- I did not purchase it because of the gas mileage. I bought it to crash into snow banks, to go mud bogging, to climb rocky terrain, and to enjoy a vehicle that still puts thrill into driving. As long as it remains legal to do so, I will continue to love to get behind the wheel.
6-04-2008 @ 2:23PM
dale elmquist said...
Hummer sucks...what a boondoggle of a vehicle. Its
drivers have a "screw you" and a "to hell with the
environment attitide"...... It is what it is.
6-07-2008 @ 2:57PM
deborah said...
i recently bought a hummer h3 because of the security it gives me and my family..and of course the 5 star safety rating that comes with it..it burns less gas than most of the suv s that my freinds have, and what a smooth ride. its also a beautiful automobile. its like nothing else. i feel blessed to be a hummerette...