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GM turns off the ignition on Hummer

08-26-2010 08:51 BJT

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General Motors will cease production of its range of Hummer SUVs and trucks, by the end of August. It seems Hummer's fuel inefficiency has rendered it irrelevant to the current auto market.

GM says the Hummer brand will be gone by the end of August, ending 18 years of civil and commercial use.

Despite its formidable off-road ability, the Hummer has had a tough time finding its place on the market in recent years.

GM says it held several rounds of negotiations with interested buyers from China, India, Russia and two Gulf Coast states. But none of the rescue efforts came to fruition. With green autos flooding the market and skyrocketing fuel prices, it seems the gas-guzzling Hummer was always doomed for a limited lifespan.

Shi Jun, one car expert said "Many things contributed to the end of the Hummer. Firstly, fuel costs are on rise, as the world is running short of fossil fuels. Consumers in the future will choose cars that offer low-emissions and energy-saving qualities. These trends don't leave much of a market share for a gas-guzzler like Hummer.."

Abandoning the Hummer means General Motors' market share will shrink. But analysts say the decision could be a smart one, as it allows the company to divert resources to other brands in its stable. The shake-up gives GM a better chance of competing against Japanese and German rivals.

Shi Jun said "Shutting down a brand means less costs for a company. If GM relocates Hummer's technology to other brands, it may very well build another successful brand to fill Hummer's market share. After all, the brand is quite prominent in the history of the SUV."

Chinese distributers say the current inventory of Hummers is all there is - and there won't be any more shipments after they sell out.

One Hummer dealer said "The price will definitely go up, as China's demand for the vehicle is still very high."

For those who already own a Hummer, they may have to wait longer for components to be shipped from the U.S. after production shuts down. But car maintenance can still be done at GM dealers' workshops.

Editor:Xiong Qu |Source: CNTV.CN

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