There's no shortage of speculation about Hummer. In that regard, nothing's changed. From Day One of the “gentleman's agreement” between companies, there were journalists and car guys screaming that GM should get rid of Hummer. And now, with things difficult for all companies trying to sell vehicles (especially big SUVs), those voices are getting even louder. Never mind that just five short years ago Hummer was the perfect example of a General Motors that was able to see opportunity and swiftly move in for profit and gain, essentially giving the megacorp true off-road credibility. All that's changed now. Hummer sales have dropped more than 40% over last year, and GM has been quite open about wanting to shop it around. But this sale might be a little more complicated than first realized.
Consider that the original deal GM struck with AM General was for the use of the Hummer name -- for its brand. This relationship was born on paper and really doesn't have many of the typical corporate assets after that. There is a test facility and plant in Mishawaka, Illinois, that makes the Hummer H2 and H2 SUT, but it sits on the grounds of the original H1 building site and uses just about every heavy-duty Silverado/Sierra truck part GM has. Likewise, the new Hummer H3T pickup is built off the same line as the GM compact pickups do, using many of the same parts (albeit solidly modified) that are shared with the Chevy Colorado and GMC Canyon. Even the H3 SUV (just out three years ago) is built in that plant as well. Untangling these relationships and parts lines could almost be impossible. The only bright spot might be the newly opened Port Elizabeth, South Africa, plant, where Hummer makes the H3 for world export and is looking to be a hit.
Here in the States, just as the pickup truck and large SUV market takes a dive, the company that's become the poster child for waste and excess is now coming out with a midsize pickup truck. This has given fuel to critics who can't wait for Hummer to become a fat boat anchor at the bottom of the sea. Still, as crazy as it sounds, this might be the vehicle that keeps Hummer alive -- a no-nonsense pickup truck with huge amounts of credible 4x4 personality. But none of that will help in the short-term if an actual sale does go through soon and Hummer has to start the process of having to untangle all the snarled plant production assets while still keeping vehicles rolling off the line with some semblance of quality. Whoever buys Hummer to will be linked/partnered/chained together for many years. Certainly, that would be just fine for a company from India, China, or Korea looking to gain deeper access into a mature automaker in what is still a hugely important sales market (just look at all the European companies falling all over themselves to build plants here).
No matter what, it's going to be a tough sell, especially for the dealers who have been recently schmoozed and courted to stay on board. GM, better than anyone, understands that if the dealer network doesn't stick around, there's not a lot of reason for anyone to shell out much money for the brand. That just might be the biggest hurdle GM has ahead and another reason why it'll likely be intimately involved with Hummer for many years to come. What the R&D Hummer has done on future products is already a huge cost and could offer some interesting options to the entire industry.