"It's a reflection of where we're going with the Hummer brand," Hummer general manager Martin Walsh said of the decision. "The Hummer DNA still resides in the Humvee. ... It will always be the core from where we come." Walsh said Hummer plans to focus on models with broader appeal instead of the niche-market H1. Since taking over the Hummer name in 2000, GM has introduced the still hefty H2 and a midsize H3 sport-utility vehicle. The H1 gets about 10 miles per gallon, but Walsh said rising gas prices didn't factor into GM's decision. He noted that H1 buyers typically have been less sensitive about gas prices than most other drivers. Auto analyst Erich Merkle with the consulting company IRN said the decision fits with steps GM has taken to bring the Hummer brand to more mainstream drivers with the H2 and H3. "They're going to continue moving Hummer in that direction," Merkle said. "It's a great brand. There is a lot that can be done with that in terms of leveraging its ruggedness and toughness." Merkle added that the kind of drivers who buy the H1 don't worry about things like gas prices. "It's really one of those over-the-top vehicles," Merkle said. "It doesn't really have much of a place in everyday society. You can't put it in the parking ramps. Parking spaces can't accommodate it." The H1 attracted well-heeled drivers looking for a military-style vehicle with an intimidating stance. For the 2006 model year, the H1 was offered as a high-performance H1 Alpha that costs about $130,000 to $140,000. The vehicle first was marketed to the public as the Hummer in 1992 by AM General, which also makes the military version. Under a 1999 deal, GM bought marketing rights to the Hummer name and called the vehicle the Hummer H1. Hummers often have been associated with celebrities who owned them, such as actor Arnold Schwarzenegger. California's governor was AM General's first civilian customer, buying a custom-made conversion of the military model as well as civilian production models. Last year, GM sold 374 H1s, down 16% from 2004. AM General, which builds the H1, H2 and Humvee in Mishawaka, Ind., said in a statement that it doesn't plan to cut any jobs as a result of the decision. GM said workers there were expected to be shifted to military production. |
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Hummer H1 |
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Hummer SUT |
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