Hummer's Popularity Sparks Wannabes from Competitors

Strategic Insights -

The success of General Motors' Hummer brand has inspired its competitors to develop similar vehicles, with Ford and Chrysler Group showcasing concept SUVs with Hummer-like qualities at the North American Auto Show. General Motors sold 35,259 Hummer H2s in its first full year on sale, exceeding its expectations by 25%. The brand's enormous profits have sparked interest in expanding the line, prompting competition to follow suit.

Key Takeaways:

  • Chrysler, which claims its Jeep brand is the pioneer for military-type sport-utility vehicles, is frustrated by Hummer's popularity and has attempted to keep GM from using a seven-slot grille shared by Hummer and Jeep.
  • Ford is showing a concept SUV that's more brawnier than its other ones, featuring a 2.0-liter turbo-diesel engine and a nitrous-oxide injection system to boost horsepower.
  • The concept Ford Bronco is smaller than the Hummer H2, anticipating future Hummers that are expected to be smaller in size and price.
  • Hummer is expanding its line with a variant called H2 SUT, mechanically similar to the H2 SUV, and is also working on a smaller Hummer, the H3T, which will come in SUV form in the summer of 2005.
  • Chrysler's chief designer, Trevor Creed, hinted that the SUV concept, Rescue, will be built, citing a business case to do so.

Statistics:

  • General Motors sold 35,259 Hummer H2s in its first full year on sale (25% more than expected).
  • The H2 SUV starts at approximately $50,000.
  • The concept Ford Bronco is expected to be priced around $20,000.
  • Chrysler's Jeep brand is its strongest brand.

Sources:

  • David Kiley and James R. Healey, automotivereports (no publication date mentioned)