GM crazy about sacrificing the Hummer: brand case study

One of the strongest and newest automotive brands to hit the scene in the last decade has been the Hummer. It is a symbol of strength and one that says you have arrived. This is what intrigues Hummer buyers as it is a sign of being king of the hill. But now with higher oil prices and the focus on more fuel-efficient vehicles of the future, this brand may be sold outside of the General Motors portfolio.

Yes, sales of this great vehicle are down today, but much can be done to save the brand, even if GM is hemorrhaging cash and needs to sell something to avoid bankruptcy. There are strategies that can be employed to prevent this chaos. For example, General Motors could:

  • Make it a Hummer Hybrid
  • Make it out of a lighter material.
  • Make military vehicles for third world nations
  • Make golf carts with the same shape and brand
  • Collect royalties for toys, movies, etc.

Selling such a remarkable line of cars for pennies on the dollar is completely unwise, even if GM believes it needs to liquidate some of its assets to stay in business. This brand is a high-end brand and represents toughness and quality in the minds of consumers. In fact, it also represents excess and waste in the minds of others, mostly non-buyers of the brand.

Still, with a loyal following and being the icon and symbol it is today, selling it cheaply would be a mistake taken for a short-term hemorrhage, which will ultimately hurt General Motors in the long run. Therefore, selling it now would be a mistake. Think about this.

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