Business » Companies
Author`s name Dmitry Sudakov

GM's Iconic Military Offroad Vehicle Becomes History

It looks like the story of the legendary brand of the American military offroader is over. According to General Motors, the negotiations with last two possible buyers fell through. Hummer will be discontinued on April 12. Yet, the owners of the legendary car will be supplied with parts for another 15 years.

The statement was made by the head of GM international operations Tim Lee. Hummer will become another “dead” brand along with Pontiac and Saturn.

Only a month ago Chinese government blocked the deal between GM and Chinese company Tengzhong. The sum of contract was $150 million, and the Chinese were ready to pay for the technology and brand. The actual plants were not a part of the deal. After this blow GM was wiped out and even agreed to another audit of Hummer assets, but to no avail.

This is the end of a 20-years long story of civil modification of the main vehicle of American infantry troops. The plant in Lansing, Michigan, is to complete the assembly of the last 849 Hummer models Н 2 and Н 3 by April 12. However, supplies to the Army will continue.

“GM only has the right for production of civil Hummers. Army modification Humvee, as far as I know, is still supplied to the US Army,” said GM press-secretary Roman Skolsky.

Humvee is produced by AM General. The company first produced this model in the 1970s. Its civil version, Hummer, appeared only in 1990. At the same time first two Hummers drove from London to Peking on the roads of the Soviet Union. The car became famous after the “Dessert Storm” operation. AM General started official sales of Hummer in 1992.

In 1999 GM purchased production rights. They made Hummer Н 1, then Н 2 and Н 3. By 2006 Hummer was sold in 33 countries. Since October of 2006, GM started making Hummer at a plant in Port-Elizabeth (South Africa), and in Russia, at a Kaliningrad factory Avtotor.

“We began Hummer production in 2006 and finished in 2009. GM stopped sending us assembly orders,” Elena Shamaeva, deputy director of Avrotor says.

After this only a few Hummers were left at world dealerships.

“We have several cars left, both Н 2 (starting at 2.3 million rubles) and Н 3 (starting at 1.3 million rubles). We do not expect any problems with spare parts and warranty maintenance, Major Auto, the official dealer of Hummer told Izvestia.

The spare parts will be produced for at least another 15 years, promised Roman Slolsky. But Hummer owners still face certain risks.

“Hummer discontinuation will obviously affect the owners. The cars will most likely lose their value. Spare parts will be more expensive,” said Sergey Udalov with Autostat analytical center.

Last year GM sold 9,046 Hummers (1,123 in Russia) compared to 71,000 in 2006.

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