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Hummer's non-green images could lead to its downfall

Written By Lee Sibbald Published On: Jun 05 2008
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General Motors are considering selling its Hummer brand and launching an electric car as it becomes the latest car manufacturer to admit it is struggling with the changes that are occurring in the industry due to high oil prices. GM, who is behind the Vauxhall marque in the UK, intends to focus its business on less petrol-intensive vehicles to fulfil consumer demands for greener, eco-friendly cars.Rick Wagoner, GM's chief executive believes the shift in the US to smaller cars was likely to be a lasting one which GM needs to take full advantage of. The GM board have given the green light to the Chevrolet Volt, an electric car that will be made in GM's hometown of Detroit. However, the changes could lead to an ending of its ten-year association with the Hummer; a strategic review of the brand is imminent. Drivers have become more conscious of their own carbon dioxide emissions and the result has been a drop in Hummer's appeal, with sales down 29.6pc so far this year. Mr Wagoner also outlined the closure of four plants - two in the US, and one each in Canada and Mexico - more than 10,000 personnel could be affected.Mr Wagoner's plans come just a fortnight after Ford announced it is no longer expected to return to profit in 2009 as it revealed plans to slash production of 4x4s.

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