Unintended Effect: War sparks sales of Hummer vehicles, merchandise - Autoweek

[Klaus]

(09:36 March 31, 2003)
Unintended Effect: War sparks sales of Hummer vehicles, merchandise


By RICHARD TRUETT | Automotive News



General Motors didn't plan it this way, but the Hummer brand is getting a big boost from the war in Iraq.

Some dealers are reporting brisk vehicle sales while others say Hummer-brand shirts, mugs, jackets and models are flying out the door.

As in the 1991 Gulf War, the military version of the Hummer -- the HUMVEE -- is featured prominently in news reports from the battlefield.

At Hummer of Orlando in Orlando, Fla., showroom traffic and sales have risen dramatically in the past two weeks, says sales manager Rob Huth.

"People are buying more shirts, hats and models, and that is sparking interest in the Hummer," he says.

But not all Hummers are created equal. The H2 model -- sometimes called the 'Baby Hummer' -- has gotten a big boost in sales. In March, dealers are expected to sell as many as 3,300 H2s.

At that rate, the H2 plant in South Bend, Ind., will be operating at full capacity to keep up with demand. The plant can produce up to 40,000 vehicles a year.

By contrast, the full-sized Hummer -- dubbed the H1 -- hasn't gotten much of a sales boost from the war. Theat may be due to price: The least expensive H1 costs more than $100,000.

Hummer spokeswoman Heather Hall said AM General will produce 400 H1s this year. That will create a sizable inventory; Hummer dealers already have 350 to 400 H1s in stock.

One yardstick for the H2's popularity is Traderonline.com. The online auction service last week offered used H2s that were being offered for more than their original sticker price of $49,270.

The H2's popularity is putting some dealers in an uncomfortable position: They want to sell everything on their lot, but they don't want to appear to be profiting from the war.

"Obviously, any time you can get exposure like that, it can't hurt you," says Stan Parsons, sales manager at Al Serra Hummer in Colorado Springs, Colo.

There has been a "tremendous interest" in Hummer trinkets, and vehicle sales have been brisk, he says.

Before the war, Hummer H2 sales were hot, Parsons says. Despite a general market downturn, it remains a strong seller, he adds.

The dealership has a 15-day supply of the H2, significantly short of its 60-day supply of other nameplates.

At Cerritos Hummer in Cerritos Calif., H2 sales are booming, says Product Manager Tom Bowlin. In the week after the first missile attack on Iraq on March 19, the dealership sold 32 H2 trucks. Normally the dealership sells 70 a month.

Early tax refunds boost sales every March, Bowlin says. But the war appears to be the primary reason for the uptick.

[Klaus]

(09:36 March 31, 2003)
Unintended Effect: War sparks sales of Hummer vehicles, merchandise


By RICHARD TRUETT | Automotive News



General Motors didn't plan it this way, but the Hummer brand is getting a big boost from the war in Iraq.

Some dealers are reporting brisk vehicle sales while others say Hummer-brand shirts, mugs, jackets and models are flying out the door.

As in the 1991 Gulf War, the military version of the Hummer -- the HUMVEE -- is featured prominently in news reports from the battlefield.

At Hummer of Orlando in Orlando, Fla., showroom traffic and sales have risen dramatically in the past two weeks, says sales manager Rob Huth.

"People are buying more shirts, hats and models, and that is sparking interest in the Hummer," he says.

But not all Hummers are created equal. The H2 model -- sometimes called the 'Baby Hummer' -- has gotten a big boost in sales. In March, dealers are expected to sell as many as 3,300 H2s.

At that rate, the H2 plant in South Bend, Ind., will be operating at full capacity to keep up with demand. The plant can produce up to 40,000 vehicles a year.

By contrast, the full-sized Hummer -- dubbed the H1 -- hasn't gotten much of a sales boost from the war. Theat may be due to price: The least expensive H1 costs more than $100,000.

Hummer spokeswoman Heather Hall said AM General will produce 400 H1s this year. That will create a sizable inventory; Hummer dealers already have 350 to 400 H1s in stock.

One yardstick for the H2's popularity is Traderonline.com. The online auction service last week offered used H2s that were being offered for more than their original sticker price of $49,270.

The H2's popularity is putting some dealers in an uncomfortable position: They want to sell everything on their lot, but they don't want to appear to be profiting from the war.

"Obviously, any time you can get exposure like that, it can't hurt you," says Stan Parsons, sales manager at Al Serra Hummer in Colorado Springs, Colo.

There has been a "tremendous interest" in Hummer trinkets, and vehicle sales have been brisk, he says.

Before the war, Hummer H2 sales were hot, Parsons says. Despite a general market downturn, it remains a strong seller, he adds.

The dealership has a 15-day supply of the H2, significantly short of its 60-day supply of other nameplates.

At Cerritos Hummer in Cerritos Calif., H2 sales are booming, says Product Manager Tom Bowlin. In the week after the first missile attack on Iraq on March 19, the dealership sold 32 H2 trucks. Normally the dealership sells 70 a month.

Early tax refunds boost sales every March, Bowlin says. But the war appears to be the primary reason for the uptick.