H4!?!?!?!?!? No, really, this is an article pretty much announcing H4!

[Drag]

The Article in AutoWeek

Would a small Hummer be dumber? GM fears diluting muscle-bound brand


By DAVE GUILFORD | Automotive News


The Hummer H2 has been a success so far for GM.
SOUTH BEND, Ind. - Hummer is facing the toughest decision of its charmed existence: Should it build a small SUV, the H4?

Hummer has successfully launched the H2. The H2 SUT pickup is coming in the spring, and the smaller H3 is due in 2005.

Those vehicles will keep Hummer in the premium niche it occupies. But, although General Motors is reaping strong sales and profits with Hummer, extending the lineup has its risks. It could dilute the macho Hummer image and steal sales from other GM trucks.

Hummer already is preparing for the introduction of its H2 SUT, a pickup version of the H2 SUV that debuted last year. Hummer expects that vehicle and the H3 to give it 100,000 annual sales - enough to support the free-standing dealerships that Hummer wants.

Hummer sells the H1 at a base price of $105,975 and the H2 at $49,190. And even the pricing for the smaller H3 is expected to start near $40,000.

The H3 will be built on the mid-sized pickup architecture developed for the 2004 Chevrolet Colorado and GMC Canyon.

But GM, which owns the marketing rights to the Hummer brand, has hinted about further expansion of the lineup of rugged SUVs. In March, GM Vice Chairman John Devine said in a speech that "we're thinking about an H4."

Mike DiGiovanni, Hummer marketing general manager, says Hummer is "actively looking at other options" for an H4.

But Hummer is not considering sport wagons based on cars, he says. Any future Hummer must have off-road credibility in order to maintain the mystique that began with the H1, a slightly civilized version of the Humvee military vehicle developed by AM General LLC in South Bend, Ind.

Moving to a smaller Hummer poses several problems, says Jim Hall, vice president of AutoPacific in Southfield, Mich. Pricing would be a key issue, because a smaller, less expensive Hummer could draw buyers away from popular GM SUVs such as the Chevrolet TrailBlazer and GMC Envoy, he says.

"There's a huge discussion internally as to whether they want to move downmarket or not," Hall says. "This is a big decision."

Hummer dealer Jim Lynch of Lynch Hummer in O'Fallon, Mo., says any vehicle priced below the H3 would have to outdo competing vehicles in off-road capability and premium features, he says.

"If you maintain the toughness and rugged character, you should be able to go downmarket a little," Lynch says.

But Lynch says GM must be cautious about altering Hummer's premium image: "This is a premium brand, and we'd like to keep it that way."

Corvette= "The ability to pass with class"