Well, that’s the end of that. Hummer dealers were notified yesterday that letters were being drawn up and sent to them regarding the ending of their franchise agreements. After the deal with Chinese company Tengzhong Heavy Industrial Machinery Co. fell through, the casket was basically sealed.
The brand enjoyed massive success during the free spending days of the early 2000s but took a literal nose dive once the economy went south. It suddenly wasn’t the hot ticket to own an SUV that cost more than a home in many areas of the country. Smaller variants like the H3 were more practical and sold well, but the image that so many craved to own a piece of in better times, ended up as a cinder block around the neck of the company when the financial situation of many potential buyers tightened up.
Not shockingly, you can get a smokin’ deal on remaining inventory with GM sticking massive rebates and incentives to get the stock off of dealer lots. According to a Business Week story, the brand has only moved 855 vehicles in the first three months of the year.
Hummer will join Saturn, Saab, and Pontiac as defunct brands of General Motors (Saab lives with new owners). We gave a hoot about only one of those marques ad it wasn’t Saturn or Saab. It will be interesting to see how history looks back on Hummer. It made the company piles of money in good times, but it’s end was overdue in coming.
Source — BusinessWeek.com — Hummer Brand Closing
