Saturday, May 13, 2006

GM bids farewell to H1


by Michelle Maynard and Nick Bunkley

General Motors is preparing to give a final salute to the hulking Hummer H1, the ultimate in sport utility might and, to its many critics, the ultimate in environmental incorrectness.

General Motors
About 12,000 H1's have been sold to the public, and the current price is around $140,000.

G.M. said Friday that it expected to stop building the H1, flagship of its Hummer line, next month. The move comes 14 years after it first went on sale to the public.

The H1, originally called simply the Hummer, and lately known as the H1 Alpha, is derived from the military vehicle called the Humvee.

The wide, rugged Jeep-like vehicle captivated many television viewers, who watched it trek across the Iraqi desert during the Gulf War. Hoping to capitalize on Humvee-mania, its maker, A.M. General, quickly brought out a street-legal version.

Despite its $140,000-plus price tag, rough ride and a fuel economy rating of about 10 miles a gallon, well-heeled buyers and celebrities like Arnold Schwarzenegger snapped up the H1 when it first reached the market in 1992.

"It started out as a huge image boost for G.M. — everyone knows what a Hummer is," said Ron Pinelli, the president of Autodata, an industry statistics firm in Woodcliff Lake, N.J.

About 12,000 H1's have been sold to the public, including 4,000 by G.M., which bought the marketing rights to Hummer from A.M. General in 2000.

Since then, G.M. has added two slightly smaller Hummers, the stately H2, introduced in 2002 and the relatively petite H3, which went on sale last year.

Perhaps because there are more choices of Hummers, or because H1's moment of military chic simply has passed because of the conflict overseas, sales of the H1 have plummeted.

G.M., which sold 875 H1's in 2000, sold just 374 in 2005, and 98 in the first four months of 2006, according to Autodata.

With diesel fuel prices around $3 a gallon, it costs more than $150 to fill up the H1's two gas tanks, which together hold 51.5 gallons.

And with G.M. on a push to recast its image as a green company, "it's time for it to go away," Mr. Pinelli said of the biggest Hummer.

Environmentalists, who have used the H1 as an automotive punching bag since it first heaved onto American streets, could hardly contain themselves.

"It's one thing if it's carrying soldiers to and from a fight," said Daniel Becker of the Sierra Club, which maintains an anti-Hummer Web page called "Hummerdinger.org." "It's another if it's hauling lattes home from Starbucks."

For its part, G.M. said high fuel prices were not the reason it pulled the plug on the H1. Instead, G.M. said Hummer's maker, A.M. General, "will dedicate its engineering, manufacturing, marketing and dealer resources to bringing more new or significantly revised models to market."

Despite the decline in H1 sales, Hummer dealers expressed disappointment that the gargantuan vehicle's days were numbered.

"The H1 is where it all started," said Ben Olin, sales manager at Ed Schmidt Hummer, a Maumee, Ohio, dealership that was one of the first in the country to sell the H1. "There's a lot of heritage that goes along with it."

Mr. Olin sold just two H1's last year. Many buyers, he said, are now turning to the less overbearing H2, which is based on the Chevrolet Tahoe S.U.V.

Indeed, G.M. has sold more than 100,000 H2's and more than 50,000 H3's, based on the Chevy Colorado pickup, since each went on sale. Leo Karl III, president of Hummer by Karl in New Canaan, Conn., said he was surprised at G.M.'s decision to discontinue the vehicle after investing money to make it street-legal. The H1 has a "beautiful interior and unbelievable" 6.6-liter, turbo diesel V-8 engine, Mr. Karl said.

Mr. Karl said he would miss the H1. "If there's one vehicle on the road that's like nothing else, that's it," he said.

Reprinted from the New York Times 5-13-06

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