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HUMMER

GMC Hummer: A Quiet Revolution

February 3, 2020 by admin Leave a Comment

We got a glimpse of the all-new Hummer during Super Bowl LIV.

If you were looking forward to learning more about the upcoming Hummer by GMC all-electric SUV during this year’s Super Bowl (congratulations, Kansas City), you might’ve been disappointed. The information was scarce, although the “quiet revolution” theme made its point.

What we do know is that LeBron James is now the public face of Hummer, which is a step up from his previous role as the brand ambassador for the Kia K900. The K900 has always been a Kia oddity — an oversized sedan with luxury aspirations. LeBron’s influence never extended to sales success – the K900’s annual sales are measured in the hundreds.

As for GMC’s ad in Super Bowl LIV, it was big on hints, but not on substance. We saw only glimpses of the SUV’s front fascia, with HUMMER prominently featured across the grille. But it’s an emerging distinction that’ll set the Hummer sub-brand apart from the rest of the GMC brand, while still offering somewhat of a connection to the original Hummer line.

Here’s what we know about the new Hummer:

1. From Humvee to Hummer.

If the Hummer name evokes a connection to military-style vehicles big on girth and terrible on fuel economy, that’s exactly what the brand represented in its initial phase. Derived from the American General HUMVEE vehicles that operated in Desert Storm in the early 1990s, the line eventually expanded to include smaller, yet still inefficient models. GM tried to sell Hummer in 2011 when the company reorganized following its bankruptcy, but found no takers. The brand was later dropped, along with Pontiac and Saturn.

2. Reimaging Hummer.

Rumors that GM would resurrect Hummer surfaced from time to time, likely the wishful thinking of a tight cohort of enthusiasts waxing nostalgic about the brand. Last fall, however, those rumors became more frequent and soon substantive when GM confirmed as much. By late-January, GM offered clarity on what it had in mind – a line of fully electric vehicles bearing the Hummer name. This time, however, Hummer would be utilized as a sub-brand of GMC, much in the same way EQ is the electric sub-brand of Mercedes-Benz. Say what you will, but resurrecting the Hummer line as an EV brand allows GM to distance itself from Hummer’s original mission, while supplying GMC with differentiation from Chevrolet.

3. Electric Aspirations.

Like Ford, we’ve long known GM has been working on bringing new electric trucks and SUVs to the market. Building on its earlier success with the Chevrolet Volt PHEV and the current Chevy Bolt EV, the new electric vehicles will also allow GMC to take on upstart Rivian, Tesla’s Cybertruck, and Ford itself. Electrifying smaller vehicles has worked well for manufacturers to date. Adding electric SUVs and trucks extends the revolution into new territory and may very well make EVs more commonplace in the near future.

4. Power to the People.

Electric vehicles are big on power, but achieve optimum performance quietly and without emissions. That’s the crux of what the new breed of Hummer by GMC vehicles is all about. While we don’t yet have much information to go on, the GMC Super Bowl advertisement says the new vehicle will have an output of 1,000 horsepower and 11,500 pound-feet of torque, as well as a 0-60 mph time of just 3 seconds. Yes, those numbers are incredible, almost impossible to fathom, and may change the game for SUV and truck shoppers. Cost, of course, will be a huge factor, but customers are already paying $50,000 or more for gas versions. Some may make the switch to an EV if the price point is reasonable and the range excellent.

5. May Introduction.

We may hear additional information about the Hummer line in the intervening weeks, but you’ll have to wait until May 20, 2020, for the official reveal. We do know that GM is converting its Detroit-Hamtramck facility to build the new Hummer. In fact, this manufacturing plant is one part of a $2.5 billion investment GM is making in electric vehicles, with the first model of the new breed set to roll out in late 2021. That’ll be some 18 months after the electrified Hummer is unveiled, giving us many months to consider what’s coming down the pike.

Hummer by GMC

LeBron will be the spokesman for Hummer EV, but not for the entire GMC line. For GMC, the brand gets important separation from Chevrolet, something Denali and a six-trick tailgate have done thus far. That said, if consumers embrace electrification in a big way, Chevrolet, Cadillac, and Buick will likely receive similar love with perhaps a whole host of crossovers, trucks, and SUVs electrified down the line.


See Also — 9 Winners and Losers of 2019

Photo copyright GM Corp.

Filed Under: Automotive News Tagged With: ELECTRIC VEHICLE, GM, Gmc, HUMMER, LeBron James, Super Bowl, SUV, truck

Mercedes-Benz Shifts R-Class Production to Indiana

January 28, 2015 by admin Leave a Comment

AM General to build the R-Class for Mercedes-Benz.

Mercedes-Benz R-Class

An earlier Mercedes-Benz R-Class model.

Mercedes-Benz has just one assembly plant in North America, but that Alabama facility is running at full capacity. There have been rumors over the past few years that Mercedes would either expand its plant or partner with another manufacturer to increase productivity, so on Tuesday the German automaker announced its plans.

Beginning this summer, new Mercedes R-Class models will drive off an AM General assembly line not far from South Bend, Indiana. The R-Class was introduced in 2005 and was distributed across the United States through 2012. Commencing in 2013, the R-Class has been shipped to China only where the new models are also destined.

Alabama Production Constraints

The shift to Indiana will free much needed space at Mercedes’ Tuscaloosa factory. Specifically, that plant will make room for other Mercedes-Benz models, including the GLE-Class and the GL-Class. Moreover, an all-new GLE Coupe is slated for the 2016 model year and will be assembled in Alabama as well.

Jason Hoff, CEO of Mercedes-Benz U.S. International, explained that Tuscaloosa “needs all available production capacities for this segment.” Like other luxury builders, Mercedes-Benz has been working diligently to keep up with utility vehicle demand.

Mercedes-Benz expects to assemble about 10,000 units of the long wheelbase version per year; it no longer builds the standard model. The company could have transferred production to China, but many of its suppliers are in the US. Besides, the migration to Indiana will be accomplished rapidly and the relationship with AM General will span several years.

UAW Organizing Quest

The shift of the R-Class to Indiana will also mean that those laborers will be working in a union environment. At the same time, Mercedes’ Tuscaloosa plant has been under the UAW’s scrutiny for years, as the union would like to organize those workers. All Daimler facilities except for Alabama are unionized. What pressure in shifting R-Class production to Indiana will have on union organizing in Alabama remains to be seen.

In a statement issued following Mercedes’ announcement, UAW Secretary-Treasurer Gary Casteel congratulated the company and employees “on this positive new development.” Casteel added, “Investing in the future with UAW Local 5 members in Indiana is a clear signal that Mercedes-Benz and Daimler value employee representation.” Furthermore, the union represents 7,000 Daimler workers in North America and most definitely would like to organize Tuscaloosa.

AM General and General Motors

Mercedes-Benz is not the first automaker AM General has hammered out a strategic partnership with — its most recent collaboration was with General Motors. That relationship was forged in 1998 when GM purchased the Hummer brand name from AM General, which was also building the military specification Humvee.

Only the pioneering Hummer H1 was assembled by AM General for GM, with its production terminated in 2006. Subsequent H2 and H3 models were based on existing GM platforms and built at GM facilities elsewhere. GM’s attempt to locate a buyer for Hummer after its bankruptcy and reorganization failed — the brand was dissolved in 2010 as dealers closed shop.

Competitors Need Capacity Too

As Mercedes-Benz shifts R-Class production away from Alabama and to a secondary facility, it may motivate those competitors with a limited manufacturing presence in North America to do likewise.

So far, BMW has been expanding its South Carolina plant to accommodate demand, while Audi has a plant under construction in Mexico. Furthermore, Lexus is shifting ES350 production from Japan to Kentucky, and Acura is now building its NSX super car in Ohio.

Finally, Volvo wants to shift some production to the United States, but its efforts seem focused on building a new plant in the Carolinas or Georgia. Other brands seem satisfied to work with what they have, importing vehicles from home country plants or wherever excess global capacity can be procured.

***Wikipedia photo courtesy of Rudolf Stricker***

Filed Under: Automotive News Tagged With: ALABAMA, AM GENERAL, China, GM, HUMMER, Mercedes-Benz, MERCEDES-BENZ R-CLASS, TUSCALOOSA

Book Review — Car Guys vs. Bean Counters

June 24, 2011 by admin 1 Comment

Former GM vice-chairman offers an insider’s look at a once proud industry.

Bob Lutz is one of the most colorful, if not controversial figures in the automotive industry today. Although he officially retired from General Motors in 2010, ending a 47-year automotive career that also began with GM and included stints at BMW, Ford and Chrysler, Lutz is now a consultant as well as an author, having published two books including his recently released “Car Guys v. Bean Counters.” This book, published in 2011, takes a look at GM’s rise and fall, but with an eye toward the future – something that Lutz sees as promising for one of the largest automakers in the world.

Maximum Bob

“Car Guys” gives the reader insight into the man whose influence in this important industry is often misunderstood, although the nickname “Maximum Bob” suits him well. This term accurately describes a man who goes full throttle, telling you exactly what he likes or dislikes, ignoring social etiquette and often shaking established, if not erroneous beliefs, including calling global warming “a crock.”

Lutz, now in his late 70s, still resembles the tall, handsome ex-Marine whose visibility was at its nadir for decades, but especially evident while he was serving in his second tenure with GM, spanning from 2001 to 2010. During that decade Lutz served as vice-chairman, or lieutenant for Rick Wagoner and then for three post-bankruptcy GM chairmen.

I met Lutz once, at a meet and greet for new media people held at the 2008 North American International Auto Show in Detroit. I also met Rick Wagoner at the same show, but Lutz’ personality was more front and center, as he explained to his captive, yet attentive audience the virtues of the Chevy Volt, an electrified vehicle still some three years away from production.

Industry Troubles

His most recent book outlines the post-war transformation of an auto industry that went from a global innovative powerhouse to one that was gradually overwhelmed by “process” people and stifled by government regulation. Forever a defender of the U.S. auto industry, Lutz outlines how GM, Ford and Chrysler went from greatness to secondary status in a generation, facing an onslaught of cheaply made Japanese cars that were foisted upon the American populace with the consent of Washington bureaucrats concerned that Japan was at risk of being pulled into emerging China’s orbit. The thinking, according to Lutz, was that if Japan’s insulated economy could be strengthened by exporting its products to a willing American consumer, then everyone would benefit. Except, of course, the Big Three, companies Lutz said were dominated by accountants and very slow to adapt to or at least recognize change.

Much of Lutz’ book points out what went wrong with General Motors, a car company that once dominated the market, producing cars that were stylish, plush, fast and desirable. The transformation from powerhouse to also ran began as the company began to be driven by accountants, with design people stripped of their ability to build cars that were attractive or even worthy of consideration.

Management Missteps

Lutz faults top management and an archaic internal culture that lost sight of what the
customer wanted, producing cars that were ill-conceived and poorly executed. Examples of such included the Cadillac Cimarron, a compact car released in the early 1980s, but sharing the same platform and body of its Chevrolet, Pontiac, Oldsmobile and Buick counterparts. Admitting that Cadillac was never quite the “standard of the world,” nonetheless the brand at one time exuded a certain level of respect whereby luxury products everywhere were defined by the “the Cadillac of….” in its respect industry. “The Cadillac of fashion” or the “Cadillac of new homes,” defined products mirroring a marque that at one time lived up to its exalted status.

The reader also sees where a Fortune 500 company, in a bid to maintain global dominance, made numerous executive and financial decisions which cost the company billions of dollars. Saturn was a plan that was ill-conceived, but did manage to attract a loyal, almost cult-like following. Never particularly fond of this “different” car company, nevertheless Lutz believed that Saturn had the products consumers wanted when the brand was canceled, but wasn’t given the advertising support necessary to advance the brand.

EV1, the electric car project, was too expensive and GM invested far more money in big trucks and SUVs, with not enough going toward small cars. Still, Lutz took to task the media, including a handful of blogger irritants whose GM bashing is wide known. Several times Lutz pointed out media bias and of its spoon-feeding of inaccuracies, if not lies, to an American public who supposedly didn’t know better. The “never can do wrong” Japanese have been proven to be vulnerable, with Lutz pointing out the recent recall problems of Toyota, an archnemeis and sometimes partner with GM.

Reconstructing GM

The best of Lutz is reserved for explaining the years leading up to GM’s downfall and eventual bankruptcy, followed by reconstruction. At once an instructor in the ways of improving automotive design as well as a PR guy not afraid to set the record straight, Lutz fought an uphill battle as vice-chairman, battling a culture steeped in tradition, if not in arcane thinking. The tide, however, was changing as cars such as the 2007 Saturn Aura and 2008 Chevrolet Malibu, reflected a GM that was building vehicles that were stylish, attractive and affordable, winning consecutive North American Car of the Year awards.

Although the company was bleeding billions annually, Lutz explained that GM was turning the corner in 2008, with several new and profitable products in the pipeline including the Chevy Camaro and the Chevrolet Cruze. The Cadillac CTS was in its second generation and successful, and the automaker had the Pontiac G8, arguably one of the best Pontiacs ever built, thanks to its Australian brand, Holden.

The downfall for GM came later that year as America’s financial problems came home to roost and as gas prices topped $4 per gallon. Alone, GM might have survived, but put together these twin challenges hammered the Big Three, leading to GM and Chrysler declaring bankruptcy, with Ford allowed to live on by tapping the funds accumulated from its hocked assets.

Going Global

The remainder of Lutz’ book explains how GM has come back from the precipice and has learned from its mistakes. Lutz warns that government regulations, a biased media and fickle consumers remain challenges for a company that has finally learned how to go global and how to get the product mix right. You’d expect Lutz to interject what he would have done if he were chairman and that he has done – devoting an entire chapter to “what might have been.” Yet, Lutz’s candor is refreshing and eye-opening, while still being able to admit his own mistakes and without shredding every one of his vocal opponents or glorifying his proponents.

“Car Guys” offers to the reader an insider’s glimpse into an industry gone wrong, but one that is far different from what we saw as recently as 2008. Lutz may be retired, but his influence lives on in this book as well as in GM’s current and upcoming product line.

Bibliography

Lutz, Bob, Car Guys v. Bean Counters. Portfolio | Penguin Group USA, 2011


See Also — Book Review — The Allure of the Automobile

Filed Under: Book Reviews Tagged With: BOB LUTZ, book review, BUICK, CADILLAC, Chevrolet, GENERAL MOTORS, GM, HUMMER, OLDSMOBILE, Pontiac, Saab

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