AM General shuts down H2 plant

[HummerMann]

Hummer announced it was shutting down the H2 AM General plant yesterday and laying off 200 workers. GM and AM General says this is at least till March, but GM is not saying if it will restart the line in March. They are obviously being tight lipped about this. No one knows if this is really temporary or the end of the line for the H2 - I hope someone with big pockets can get in there and save the H2!
http://www.wsbt.com/news/local/38399649.html

[s_c5519]

Is that the only plant where H2's are produced?

[HummerJim]

Yep, that's the only place H2s are made. What I hate about this is, that if this really is the end of production, some people will buy them and store the 2009s for auto collections and Hummers are made to be driven and not stored in a garage or warehouse. Your H2 will become a rarer and rarer sight on the road. If the AM General plant starts churning out taxis we'll know it's over.

[Dave92270]

that's a bad news...

I don't know if it is a coincidence (sort of doubt it..), but since yesterday prices on two H2's I tracked jumped up; nice clean base '05 with 33k miles went from $22k to $25, and '08 demo (80 miles, but horrible dual-color paint scheme) from $50k (still in the morning paper at that price) to $56k already at the website.. both are sold by dealerships here in SoCal

[Bionic Hummer]

It's over. Great Truck. No more. :(

[RazM]

It's over. Great Truck. No more. :(

Until it's bought...

[frenzy1]

:mad: think it'll be finished for real this year or next year

[HumminNBoatin']

I am okay with it. All Great things must come to an end. Look at is this way all of us H2 owners already have a Classic! Im sure that if it comes back it will only be if a buyout is done or when the economy recovers.

Now it might be a while, If you think about it the true muscle car dissapeared in the late 70's only to come back in the 90's. Im thinking this may be the trend we could see.

Just my $.02
Eric

[HummerJim]

I've noticed on Ebay and Auto Trader some of the H2 prices have come up a thousand or two in one day! One H2 ad on Ebay says "Own the last of the the best offroad vehicle ever made, except for the H1!"There are so many H2s out there we're not going to have to worry about parts and I'm sure there will be aftermarket manufacturers IF NO ONE buys Hummer from GM and this really is the end of the line for the H2.

[Mark805]

This makes me sad in the pants :(

[Hummer Guy]

I don't think the H2 is going anywhere too soon...there's still demand, just not the demand there was 5 years ago. A new investor will see that, embrace HUMMER's niche market, and advertise that the brand isn't for everyone. HUMMER's new CEO is already going down that path when he said this a week ago:

"If there's a disappointed HUMMER owner, it's because they weren't looking for a HUMMER. They bought the wrong car. If you're looking for a vehicle that does what this does, you're not going to be disappointed."

[Mark805]

True, Hummer has always been in that niche market, which is one reason I hope it stay around. I honestly dont see how dropping the brand can help GM, it wasn't thier bread and butter.

I still have hope for the HX. It seems like a logical step to retain that 4x4 concept with todays eco friendly mindset. (Plus i want one to apply to some eco type environments :) )

[HUMMERcustoms.com/TAZ]

Before economy started decline there were 3 solid companies having serious discussions about owning Hummer or doing a deal between them and AM General. They do not really want GM in the mix if possible except for signing on the closing papers.

When things began to change they cooled off and not because they were losing money or afraid of future of Hummer brand. They may not be so hot on spreading the line to meet whatever so called need should be filled so some models could get pared down.

What happened was that these wealth international companies (that by the way a Hummer is a huge vehicle of interest to it's certain income level worker in their specific nation) were smart enough to back off let GM for one get parinoid about the huge unpopular gas guzzler and ride out the monetary troubles happening around the globe. These companies knew before or say maybe our public knew but, still most of our own companies knew that this was coming because they had already seen the advance stages in their own nations as well as the European, Asian, Russian, and others.

These guys sat down (of which at least 1 co. is still family owned) and saw a fire sale price to be had for Hummer alone. Hey why buy it in a rush when in around a year you own Hummer for 50% off, being generous at this time, maybe even 70% off and the old rabbit in a hat trick you have a profitable company at time of closing because now tons of overhead is removed etc. etc.

Many of our business majors can most likely explain this better than me and seriously really really please do so.

TAZ

[Mark805]

Taz:

Thanks, that actually makes some sense to me...

[Badace]

I like G.M owning it. I would hate to see ford buy it. Ford styling sucks.

[hummeraddict]

Hopefully this is only temporary to save some $ for a few months. Maybe production will start again in April or May. I started saving to buy an 08 H2. I was planning on buying an 08 in two years. I want that because of the 6.2. But if they cancel the H2, prices will go higher for used ones.

[Intercooled]

Yes its a niche vehicle, I dont thnk GM can handle producing a niche vehicle anymore besides corvette. Times have changed drastically in short amount of time. I would love to see GM hang on but the sales to production dollars dont work. I believe with the HX they could turn the corner and make things happen but with this government intervention it isnt going to work.

[hummeraddict]

Yes its a niche vehicle, I dont thnk GM can handle producing a niche vehicle anymore besides corvette. Times have changed drastically in short amount of time. I would love to see GM hang on but the sales to production dollars dont work. I believe with the HX they could turn the corner and make things happen but with this government intervention it isnt going to work.
All we can do is wait and see.

[HummerMann]

This "what's going to happen with Hummer" has been going on since June and there's no quantitive way to gauge it, but it's been hurting Hummer sales, especially on the H3. One of the guys in the office wants an H3 badly, but he doesn't want to have a vehicle with no dealer network to support it, so he's holding off. He went through it with his Isuzu Trooper when Isuzu pulled its dealerships, and he says never again.

[HUMMERcustoms.com/TAZ]

Do not worry about Ford owning Hummer. The 3 companies I hinted about are not American and the one I feel will end up owning it will do far more for and with the brand than GM has done. For one once these guys own it Hummer will be around for a long time. No worries about warranty being arounf etc.

TAZ

[johndjmix1]

How could someone possibly worry about "no dealer network to support it" when the H2 is a GM vehicle! Unless GM disapears off the map there will ALWAYS be dealers to support it.

--John

[AK47]

There made in Russia as well

[dallas007]

You have to give Hummer owners credit for one thing, and that is they are a great group of optimist's !! One reads they are shutting down the plant and the sense is it is a good thing with many benefits. We read in another post that Lynch Hummer is "up for sale" and the sense is, it is ok as they are only selling the building and not the vehicles. I have been looking at the prices of H2's since last year and have not seen a sudden spike in prices but I may be missing some certain market so I am not saying it is not true. I know they are having some decent financing on Hummer's but it does not seem to help, not does the cheap gas.

Unless you are hard-core Hummer, which 99% of you fine folks here are, I hear more about how one would have to be somewhat crazy to invest in a Hummer at this time. This time next year the readers of this site will either be kicking themselves they purchased a Hummer, or, they will be saying "I told you so" as the 2010's are rolling off of someone's assembly line.

I got rid of my Ford Excursion back in 2003 as they were going to stop making them and got an H2. There are still a lot of them out there but they are not bringing a premium price because they are no longer made. I realize Ford is still around so it is not like Hummer should they pull the plug. I just got a new Kelly Blue Book and it is incredible to see the amount of depreciation there is on one. As shared earlier I was close to getting a Hummer from Lynch Hummer. They had many 2008's with a few thousand miles on them selling for $40,500. New they are $65,000+, right?? The sales manager told me someone else took the depreciation "hit" to drive those few thousand miles. Now who would go out today and spend $65-70,000 knowing 24 hours later you will loose those kind of dollars? I work for an insurance company and our clients are getting absolutely killed on betterment/depreciation. They owe ten's of thousands of dollars more than the current actual cash value is. Especially those folks that used the 0% financing. It is a real shame what is happening.

It will be fun to look back and see who called this the right way. I think people that buy Hummer's just love them and no matter what the cost or what the payments are, they are going to have one. I just can't help get the sense the pool of folks that have this deep desire is starting to dry up a little. Like most of you, I hope Hummer is here to stay!!

[s_c5519]

You have to give Hummer owners credit for one thing, and that is they are a great group of optimist's !! One reads they are shutting down the plant and the sense is it is a good thing with many benefits. We read in another post that Lynch Hummer is "up for sale" and the sense is, it is ok as they are only selling the building and not the vehicles. I have been looking at the prices of H2's since last year and have not seen a sudden spike in prices but I may be missing some certain market so I am not saying it is not true. I know they are having some decent financing on Hummer's but it does not seem to help, not does the cheap gas.

I remember many years back watching the cartoon Gullivers Travels. There was a little guy called Glum, a tiny tiny, guy, he was part of the lilliputians... Gulliver (the giant) was once tied down and when he broke loose he got up mad and started pulling trees out of the ground and chucking them as the little people were running in different directions. Glum just sat there and didn't run, I don't know if he was just depressed or as his name suggests gloomy.. But, I will never forget his quote, he just looked at the camera and said, "We're in enough trouble as it is already, why throw trees"...

I'm not exactly sure why I just wrote this but I just had to share that one, I love that one...

[HUMMERcustoms.com/TAZ]

dallas007 I think you are correct in the idea that Hummer people are Hummer people and that is why and what they drive. Most do not or in past have not bought one if they could not afford one.

I had a chance to buy a 2005 H2 on 4/28/04 and did so with a good dealer cost type deal. It was unheard of where I'm from at the time not to go to a Hummer lot and expect to be negotiating around list pricing especially on an H2 a half year early. It is just that I have never paid more than invoice and being familiar with the 2 dealer invoice routine they try to pull I did all my homework and had a good idea of what real invoice should be. It also helps to have $50,000 cash for them to see in April 2004 as it makes them drool etc. So I got an 05 on 4/28/04 that listed for $67,952 plus change. Back then it was a steal for real.

The thing is I wanted a Hummer from the time it first was available as an H1. I kept watching and going by and looking then H2 came out an I started my H2 savings project.

Those that really look to the off-road use, public service function, and then those of us that just no matter how practical your outlook for justifying the need for a Hummer, some of us just plain doggonit had to just have one because it just IS.

TAZ

[HummerMann]

I'm one of those guys that saw the '03 and just had to have one. Getting one under sticker price was unheard of then. Then I just had to have it lifted, put on the big tires, change the axle gear, put on the gobi rack and light bar etc.- Hummer lovers are familiar with this story. I love my '06 SUT as much as the '03 (maybe more) and at one time we had two H2s. Fortunately, my wife is as much a Hummer fan as I am.
I've been driving a Hummer H2 for over six years now and it's still fun everytime I crank it up. I've taken a doctor to the hospital in a snow storm with it and took a pregnant neighbor to the hospital in a blizzard with it. I've taken numerous people from our office home in blizzards in my H2 and traversed a few flooded roads and creeks. It gives me peace of mind to know I can go in almost any weather almost anywhere.
I'm hoping someone keeps the light on at the H2 factory, but if that doesn't happen there is an AMPLE supply of H2 parts around it's just a matter of money. If something has to be machined, my H2 repainted, or the engine has to be rebuilt, so be it. If they stop making them, I'll do whatever is necessary to keep this one like new, I plan on having this H2 many many more years. I WOULDN'T DRIVE ANYTHING ELSE! If gas goes back to $4 a gallon, so what - the H2 is much more than transportation for me, it's a hobby and lifestyle. You gotta pay to play!