Even with the shift in U.S. consumer preferences away from heavy SUVs into smaller sedans and crossovers, several companies have reportedly shown an interest in General Motors' Hummer brand, according to Automotive News.
There are three possible options for the future of the Hummer brand:
1) Sell it -- The potential buyer is not necessarily Tata as GM has said it has not yet talked with the Indian automaker. A dealer attending a roundtable meeting with GM's Mark McNabb, vice president of the premium channel, said "'There are parties we're talking to' -- that's what McNabb said."
2) Joint venture -- Hummer fills a very specific market niche, and as a result of this, it might be cost-effective to make a joint venture with another off-road automaker instead of try to fit Hummer models into existing GM platforms. This option brings Tata back into the equation, as a joint venture between Tata and GM could see shared off-road technologies between Land Rover and Hummer.
3) Redirect the brand - Could GM pull off a car-based Hummer to help alter public perception of the brand? Or would that simply become a Jeep Compass-style brand equity-crushing mistake?
There is not yet a clear direction for the brand, but the price companies are willing to pay for the brand may change that. What would you do with Hummer? If no company was willing to pay what you thought Hummer was worth, how would you satisfy GM's Hummer dealers?
Source: Automotive News (Subscription required)
By Zach Gale