GM Closes the Hummer

The Largest US corporations that manufacture automobiles had a difficult year coinciding with the financial crisis starting in 2008. Among them, General Motors suffered because a number of its models could not maintain market share once petroleum prices began to rise. One of the most recognizable of the gas guzzlers was the Hummer brand. Its aesthetics aside, it is an instantly recognizable vehicle.

Judging from its appearances in many music videos produced in the US, the Hummer such as the H3 model in the picture, was very popular with wealthy musicians. Indeed, with the exception of the Army, this model was largely a show of conspicuous consumption and suggestive of an aggressive lifestyle.

Nick Bunkley confirms that GM has made the decision to shut down further production of the Hummer brand after a Chinese corporation withdrew a bid to purchase it. To My mind, the Hummer brand was quite recognizable even outside the United States but the economics could not work because the demand for gas guzzlers has been reduced remarkably. Two lessons emerge from this story and the first echoes claims by Eliot Spitzer referred to here that these corporations responded poorly to competition from foreign firms because they chose to appease trade unions. The second idea is that the car manufacturers have not found the appropriate model for celebrity endorsements to sustain sales. (Photo may be subject to owner copyright)