Hummer sales off 60% for May, 2008

[XDCX]

CNBC reported that Hummer sales were off 60% for May, 2008 compared to last year.

At GM's Annual Shareholder Meeting, CEO Rick Wagoneer stated that GM was going to close four truck plants and evaluate its long term plan for the Hummer brand. All of these decisions are based on the huge increase in fuel prices that have hammered the American consumer.

GM's options for the Hummer brand include the possible sale of the brand, elimination of the brand or downsizing the product to become more fuel efficient.

Perhaps most interesting was the comment that GM is not forecasting a decline in fuel prices - they are planning their vehicle lines with the assumption that fuel prices will stay at this level or move higher. :(

Here's a link to a news report: http://www.latimes.com/business/la-fi-gm4-2008jun04,0,6352198.story

[SHACOS]

I read GM is considering selling the Hummer brand. Who in their right mind (besides the government) would by them?

[XDCX]

I read GM is considering selling the Hummer brand. Who in their right mind (besides the government) would by them?

Great point - I have no idea who would want to purchase Hummer given the current environment.

The H2 and H3 are so heavily tied to GM components that I cannot see how any other manufacturer could make the brand work financially. If GM can't make it work, why would they think that someone else could?

My bet is that they'll do nothing - it's the cheapest option.

[XDCX]

I just read that GM has hired Citigroup to review its Hummer operations and provide options.

It seems strange that GM would go outside and hire Citigroup as a consultant. Perhaps they're shopping the Hummer brand in an effort to see what value it may have to other manufacturers?