Thursday, February 25, 2010
The Hummer Dies
The car company called Hummer, known for the cars by the same name, is being discontinued after GM failed to sell the company to a Chinese heavy equipment maker. This company, having created only three models (H1, H2, and H3) (yeah, they're that creative!), had been experiencing great losses since Summer 2008, when gasoline prices reached over $4 a gallon. Usuallly, companies are not impacted by gasoline prices much, certainly not enough to drive them into bankruptcy, but Hummer is special in that the H3, the most fuel efficient of the three models, only averaged 16 miles per galon. That means it requires a LOT of gas. Thus, sales had been dropping gradually,until they reached a record low December 2009-only 325 Hummers were sold worldwide. After the failed attempt of selling the company to a Chinese heavy equipment maker, GM decided to shut it down. Environmentalists rejoice! Hummer is not alone however- Pontiac has been discontinued as well by GM.
Subscribe to:
Post Comments (Atom)
This doesn't really surprise me, since the world is "going green" well most of it, I can definitely see how, in the economy's current state, people would not buy Hummers. Though this news didn't surprise me, I was SHOCKED when I saw that the H3, the most fuel efficient, still ran only 16 miles per gallon!! That is so ridiculous! That alone would prevent me from ever buying a Hummer! But I have to say, I do kind of feel bad for GM, losing two companies in a row...that sucks!
ReplyDelete