H3 Press release

[funpilot]

Hummer steps up to high volume challenge


By John McCormick / Autos Insider


A strong showing for Hummer in the latest J.D. Power initial quality report is just part of the positive news for this General Motors Corp. brand.

Early problems with the H2 had more to do with customer satisfaction than quality concerns but dumped the vehicle at the bottom of the Power IQS study. Since then Hummer tightened up its act and now the H2 sits just behind the top car luxury brands in the consumer survey.

Next comes phase two in the Hummer product offensive, with the launch this month of the junior H3 model. Already the first H3s are being shipped to dealers as Hummer makes its first serious move towards becoming a volume manufacturer. The H3, which is based very loosely on GM's Chevy Colorado pick-up, is expected to at least double Hummer's total sales to the 60,000 mark and possibly well beyond.

As Marc Hernandez, the H3 product manager, puts it, Hummer could not survive on the sales volume generated by the H1 and H2 models alone. "It's not enough to sustain the brand or dealer body or allow Hummer to reach a broader market," says Hernandez, a member of the original Hummer 'skunk works' team. "The H3 is a fulfillment of a dream from the original plan."


What the H3 does not do, emphasizes Hernandez, is "water down" a brand name that's become synonymous with ultra-tough looks and go-anywhere capability. Though the H3 uses about 10 percent of the parts (in particular the five-cylinder powertrain, from the Colorado pickup, its H2-like design and extreme off-road capability make it a very different product. "It's not just a warmed over Colorado," stresses Hernandez.

The real beauty of the H3's relationship with the Colorado (and GMC Canyon sister model) is that the vehicles can be built on the same production line in Shreveport, Louisiana. The fact that GM has invested heavily in upgrading the manufacturing facilities at Shreveport made the business case for the H3. It also gave Hummer flexibility in terms of sales volume; Hernandez says he would be happy to sell 30,000 H3s but the plant could supply double that number. "Our breakeven number is small," he adds. "Ideally, we'd like every dealer to be one truck-load short of demand."

Besides its styling, which is very obviously derived from its larger siblings, the H3's main attractions are its affordable pricing, more compact dimensions and relatively decent fuel economy. The H3 model range is priced from $29,500 to $37,000, which opens its up to a much broader audience than the $50,000-plus H2 and the close to six-figure H1.

A practical barrier to existing Hummer ownership - the need for an extra large garage - is avoided with the H3, which is 16.9 inches shorter in length and 6.5 inches narrower than the H2. In terms of fuel consumption the H3's 3.5-liter engine is a lot more frugal than the H2's 5.7-liter V-8 and will return as much as 20mpg, if driven gently. On the downside there are some concerns that the H3's 220-hp is barely sufficient for a vehicle that still weighs a hefty 4700 lbs. It remains to be seen whether buyers are entirely happy with its on-road performance, but the H3's off-road equipment and capabilities appear convincing.

Hummer is shooting for king of the hill status among mid-sized sport utility vehicles, which means matching or exceeding the standards set by the likes of the Jeep Grand Cherokee, one of the H3's prime rivals. The H3's hardware includes an electronically controlled four-wheel-drive system, backed up by a fully locking rear differential, traction control, underbody shielding and GM's StabiliTrak stability system. Off-roading fans will like the extra control provided by the H3's standard manual transmission, a first for Hummer. And in the rubber department, no rivals can match the H3's Goodyear 32-inch all-terrain tire and optional Bridgestone 33-inch tire.

If Hummer can avoid any H2-type quality or satisfaction problems in the early days of the H3, then this could be the product that transports Hummer into a whole new league.

[funpilot]

Hummer steps up to high volume challenge


By John McCormick / Autos Insider


A strong showing for Hummer in the latest J.D. Power initial quality report is just part of the positive news for this General Motors Corp. brand.

Early problems with the H2 had more to do with customer satisfaction than quality concerns but dumped the vehicle at the bottom of the Power IQS study. Since then Hummer tightened up its act and now the H2 sits just behind the top car luxury brands in the consumer survey.

Next comes phase two in the Hummer product offensive, with the launch this month of the junior H3 model. Already the first H3s are being shipped to dealers as Hummer makes its first serious move towards becoming a volume manufacturer. The H3, which is based very loosely on GM's Chevy Colorado pick-up, is expected to at least double Hummer's total sales to the 60,000 mark and possibly well beyond.

As Marc Hernandez, the H3 product manager, puts it, Hummer could not survive on the sales volume generated by the H1 and H2 models alone. "It's not enough to sustain the brand or dealer body or allow Hummer to reach a broader market," says Hernandez, a member of the original Hummer 'skunk works' team. "The H3 is a fulfillment of a dream from the original plan."


What the H3 does not do, emphasizes Hernandez, is "water down" a brand name that's become synonymous with ultra-tough looks and go-anywhere capability. Though the H3 uses about 10 percent of the parts (in particular the five-cylinder powertrain, from the Colorado pickup, its H2-like design and extreme off-road capability make it a very different product. "It's not just a warmed over Colorado," stresses Hernandez.

The real beauty of the H3's relationship with the Colorado (and GMC Canyon sister model) is that the vehicles can be built on the same production line in Shreveport, Louisiana. The fact that GM has invested heavily in upgrading the manufacturing facilities at Shreveport made the business case for the H3. It also gave Hummer flexibility in terms of sales volume; Hernandez says he would be happy to sell 30,000 H3s but the plant could supply double that number. "Our breakeven number is small," he adds. "Ideally, we'd like every dealer to be one truck-load short of demand."

Besides its styling, which is very obviously derived from its larger siblings, the H3's main attractions are its affordable pricing, more compact dimensions and relatively decent fuel economy. The H3 model range is priced from $29,500 to $37,000, which opens its up to a much broader audience than the $50,000-plus H2 and the close to six-figure H1.

A practical barrier to existing Hummer ownership - the need for an extra large garage - is avoided with the H3, which is 16.9 inches shorter in length and 6.5 inches narrower than the H2. In terms of fuel consumption the H3's 3.5-liter engine is a lot more frugal than the H2's 5.7-liter V-8 and will return as much as 20mpg, if driven gently. On the downside there are some concerns that the H3's 220-hp is barely sufficient for a vehicle that still weighs a hefty 4700 lbs. It remains to be seen whether buyers are entirely happy with its on-road performance, but the H3's off-road equipment and capabilities appear convincing.

Hummer is shooting for king of the hill status among mid-sized sport utility vehicles, which means matching or exceeding the standards set by the likes of the Jeep Grand Cherokee, one of the H3's prime rivals. The H3's hardware includes an electronically controlled four-wheel-drive system, backed up by a fully locking rear differential, traction control, underbody shielding and GM's StabiliTrak stability system. Off-roading fans will like the extra control provided by the H3's standard manual transmission, a first for Hummer. And in the rubber department, no rivals can match the H3's Goodyear 32-inch all-terrain tire and optional Bridgestone 33-inch tire.

If Hummer can avoid any H2-type quality or satisfaction problems in the early days of the H3, then this could be the product that transports Hummer into a whole new league.