Wall Street Journal scribe John. D Stoll gets it right: if HUMMER can’t make it in Las Vegas, it can’t make it anywhere. The fact that a Vegas-based HUMMER dealer is now as dead as a dodo indicates that the entire brand faces the same non-future. “This closing is notable because of where it is taking place and who is pulling the plug. It is, after all, one thing for enviro-friendly people in San Francisco–another city that recently lost a key Hummer dealership–to shun the brand. It is entirely different when Sin City decides the vehicles are too excessive. [Dealer owner Dan] Towbin said Las Vegas is a custom fit for Hummer. ‘It’s all about bling and it’s in the desert.'” It’s also about price (high), demand (low), resale (horrendous) and incentives (Olympian). In fact, how’s this for a parenthetical aside? “(Towbin says he was offering $6,000 in incentives, not including GM’s employee-pricing discount, hurting profit margins.)” Followed by “Hummer discounts represent 22.6% of the price of the vehicle–the highest in the industry, Edmunds.com says. And still Hummer sales are down 47% this year, the largest decline of any brand, according to Autodata Corp.” So, will anyone take this three-ton turkey off of GM’s hands? How’s that old joke go? For a nickel I will.
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Isn’t Towbin the same guy that did the “King of Cars” reality show with the Dodge dealership? I believe there was an episode when they launched the Hummer dealership to a big party & lots of fanfare.
I wonder how the Dodge dealership is doing? Maybe that explains why they don’t have the reality show any more.
I believe the co-owner of Towbin is Rod Hall, the frequent Baja 1000 class winner (he holds the number-of-times record). My wife navigated for him in the 1000 a couple of years ago, and the two of us and Rod retraced much of the route of the original 1000 a year ago. So not only is it the “perfect” Hummer dealership but a principal is the guy who runs the most successful Hummer off-road team in the world.
Oh, wait, I’m wrong. Rod’s dealership is in REno.
Further proof that when things get tough, even before cutting back on the unnecessary, people will forfeit the ridiculous.
If I was a dealer and I saw the sales numbers, plus GM’s comments about pulling the plug on the brand, I’d be closing up shop too. With all the rumors flying around this past summer imagine what the dealers must be going through with talk of the company being sold off to Indians or Russians.
What an odd ten or so years it’s been for the Hummer brand. From being birthed as a civilian entity (with Schwarzenneger in the delivery room, no less!) and now possible death. From arguably being the coolest vehicle on the road to becoming incredibly un-chic because of $4/gal gas prices and the green movement.
From the looks of it, this appeared to be a standalone Hummer dealership; I can understand their pain! Around here (Seattle area), I think all them are Cadillac-Hummer dealerships now. Keeping a Hummer dealership around would be tough indeed.
Had GM already killed Olds when Hummer was born? At any rate, GM had certainly demonstrated their willingness to starve a brand thus starving dealers. And did the dealer thinking about handing over whatever to GM for a franchise and agreeing to build to suit for GM, give a moment’s thought to what would happen WHEN gas prices went up again? I feel for a lot of dealers who have done right by their customers for many years, but I don’t feel for Hummer dealers.
The best was, a month or two ago, TV ad mentioned “85% recyclable”. Go GMrencengeniuses.
GM squanders and destroys every brand they get their hands on.
They have virtually killed all of their own, killed Saab and now have killed possibly the most iconic modern brand in thier stable with what they did to HUMMER.
What TTAC says often is true, things will only get better from the top down with American automakers.
I think this may be more about Vegas than Hummer.
The present Vegas biz model depends on a good economy to get customers and easy credit to build ever newer, bigger, and cheezier attractions.
I only ever go there when it’s for business, or someone close to me chooses to celebrate something there. I now have no place to stay because they blew up the only place I had found with any class – The Desert Inn.
Would the last person leaving Vegas turn out the lights?
My wife navigated for him in the 1000 a couple of years ago
That’s some kind of awesome wife!
“From arguably being the coolest vehicle on the road to becoming incredibly un-chic because of $4/gal gas prices and the green movement.”
Another GM Fact vs Fiction:
Truth: Hummer as a brand died when GM buried the original H1.
Had GM continued believing in the brand, they wouldn’t have killed the only car that was true to the brands core values. H2 and H3 are poseur pieces of shit. With fake snorkels. Had GM continued investing in proper r&d, we would have an updated H1, or perhaps by 2010, an altogether new car that could have been the ultimate off-roader. The true King of the Hill. And there’s always a market for that kind of car, at any price. But only if it is the best there ever was. Corporate mismangament and lack of proper r&d runs havoc through the company. Now as then.
Stephen:
The Hummer Franchise in Reno is owned by Winkel Motors who also has a GMC/Pontiac and Saturn Store at the same location.
I agree 100%. It could have gone differently had they treated it as the niche brand that it always should have been. The H1 was allowed to die on the vine.
It would have been awesome if they offered a true competitor to the Jeep Wrangler. They would have co-evolved and expanded the off road world.
As it is GM just milked it to death with an overpriced Tahoe MILFmobiles.
Ingvar:
Truth: Hummer as a brand died when GM buried the original H1.
Had GM continued believing in the brand, they wouldn’t have killed the only car that was true to the brands core values. H2 and H3 are poseur pieces of shit. With fake snorkels. Had GM continued investing in proper r&d, we would have an updated H1, or perhaps by 2010, an altogether new car that could have been the ultimate off-roader. The true King of the Hill. And there’s always a market for that kind of car, at any price. But only if it is the best there ever was. Corporate mismangament and lack of proper r&d runs havoc through the company. Now as then.
Gee, I reported this on TTAC over a week ago.
Try this tack
http://www.news.com.au/comments/0,23600,24311786-2,00.html