Why The Big Three’s Struggle Could Benefit HUMMER

To say that the last few months have been a trying time for the automotive industry would be an extreme understatement. Many dealers, including one of the nation’s largest HUMMER dealerships, have been closing up shop due to tough market conditions and bankruptcy. Only three months ago the HUMMER community feared that a separation from General Motors would be detrimental to the brand’s future. Now, HUMMER faithful may be singing a different tune due in part to the struggles of GM, Chrysler, and Ford.

Tuesday, the Big Three will submit their plan to Congress which outlines their case for receiving a $25 billion bail-out. Whether the bail-out goes forward or not, the entire process is undoubtedly speeding up the sale of HUMMER. Last week it was leaked that GM was exploring cutting Pontiac, Saturn, and SAAB in addition to selling HUMMER as part of their plan to boost profitability. The difference with HUMMER is that there’s more global brand recognition, appeal, and potential liquidity from a sale.

A new investor that’s able to produce the hundreds of millions to purchase HUMMER is likely to be in good shape financially. Or, at least in better financial shape than GM. A strong financial footing would allow the investor to bring new HUMMER products to market quickly, such as the next generation H2 and HUMMER HX concept – two vehicles that were given the development ax earlier this year under General Motors.

What started off as nervousness a few months ago could be turning into cautious enthusiasm for HUMMER enthusiasts interested in the brand’s longevity. Instead of simply getting the ax like Pontiac or SAAB, HUMMER will have a fighting chance, and the possibility of having a production model H4 stays alive. As always, only time will tell for sure.