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All Posts Tagged With: "SUV"

Hummer on brink as SUV sales slide

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Has Hummer had its day? Sales of the all-American company’s models have slumped by nearly one-third, as US buyers lose their appetites for super sized cars. And bosses at owner GM have now officially confirmed Hummer’s future hangs in the balance.

In a statement, GM said it was “considering anything from a complete revamp of the product line-up to a sale of the brand”.

Hummer sales in the States dropped by 29 per cent by the end of April, compared to the same period last year. Ironically, it is doing quite well in the UK and Europe, with around 300 cars finding homes – a rise of 34 per cent. But it’s not only the Hummer that’s out of favour in America. There has been a dip in demand for larger cars across the board, prompting GM to announce the closure of four plants that build pick-ups, SUVs and trucks.

The shift has even seen the Ford F-150 pick-up lose its top spot in the US charts. It’s been the best seller every month since 1981, but was overtaken in May by the Honda Civic.

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Tata to Hummer

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Hummer is under review while Tata and Mahindra are constantly on the search for iconic new acquisitions. Could Hummer find a new home in India?
According to a report in India’s Economic Times, representatives from General Motors have approached Tata Motors and Mahindra & Mahindra regarding the possible sale of its ailing Hummer brand.

In a statement released last week, General Motors informed us that its Hummer brand was being placed under a corporate review which could conclude in a radical brand shift, or the potential sale of Hummer to an interested party.

Although the Hummer brand review is in a state of infancy, the economic factors appear to favour the brand being auctioned off. Petrol prices in the US have climbed to $4,00 per gallon (roughly R32,00 per gallon) and a 36 percent down-turn in Hummer sales this year.

Tata, whose historic acquisition of the Jaguar and Land Rover brands from Ford concluded last week, has declined to comment on this latest development, nor has its neighboring rival Mahindra & Mahindra.

Given the aforementioned increases in fuel costs and emission standards, it stands to reason that no US or Japanese automaker would wish to add a model range such as the Hummer’s to their portfolios. However, a large percentage of both Tata and Mahindra & Mahindra’s portfolio comprises trucks and SUVs. These companies are vying with one another to establish a stronger presence on the global automotive stage, so a hugely recognizable brand such as Hummer could well increase awareness in either company.

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Oil price victim: Hummer up for sale

 hummer sold gas prices oil war

Arnold Schwarzenegger and David Beckham are the emblems of the end of an American economic era. Each owns at least one Hummer, the giant SUV designed around the army’s Humvee personal troop transporter.

But the Hummer has fallen out of favour and was last week put on the block by General Motors. It is little wonder. Who would want to buy a beast that does nine miles to the gallon and costs more than $100 - £50 at the pump is a small fortune to Americans - to fill up?

GM also closed four SUV assembly plants as it put Hummer up for sale. But these drastic moves by GM are more significant than they at first seem.

The desire to own big, thirsty motor vehicles with V6 and V8 engines, capable of transporting families over vast tracts of asphalt-covered prairie and mountain range, was a defining tenet of the American economic model of the past century.

Building roads and making cars to drive on them was a central plank of the New Deal, the economic plan devised by President Roosevelt to drag the country out of the Great Depression.

A network of state parkways was conceived and built in the 1930s and 1940s by Robert Moses, the father of American urbanism. His blueprint for a society dominated by the car spread until, by the 1960s, the entire nation was covered by a web of interstate highways. This was the American Dream.

But today, with oil above $130 a barrel and stories on the news every night about commuters who cannot afford to commute and hauliers who cannot afford to haul, the dream is over. David Cole, director of the Centre for Automotive Research in Detroit, believes that America is on the threshold of a new technological era and in the next five to 10 years advances in bio-fuels - using material such as algae, sewage and waste - will enable Americans to drive big cars at a fraction of the environmental and economic cost.

GM has invested heavily in two companies who claim that their bio-engineering and genetic modification methods can produce alternatives to petrol costing about $1 a gallon. But a bold government move may also be required. Cole, who fears that the oil price will take a tumble, is calling it to set a $50 floor for the price of a barrel of crude. If oil becomes too cheap, he believes, the impetus to invest in new technology will be lost.

It may be that Arnie and Becks will be able to keep driving their dinosaurs, but with bio-fuel in the tank instead of petrol.

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Ford begins production of the Flex

On one end, General Motors is announcing its intention to wind down SUV and truck production, while at the other, Ford is just gearing up production of a vehicle that’s plenty large in its own right. Ford Flexes are now beginning to roll off the line in Oakville, Ontario, and the plant even has plans to bring on new hires in order to meet production demands. Considering the current rise of gas prices, one might think Ford’s boxy people carrier will quickly meet its demise. However, despite its full size stature, room for seven humans and a few cold drinks, the Flex doesn’t attack your gas budget like Cookie Monster on a binge. Its 3.5L V6 engine gets a respectable 24 mph on the highway, assisted by a high-tech six-speed automatic transmission. Down the road, when the Flex is available with a turbocharged direct injection Ecoboost option, its fuel economy should raise a bit more.

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Kia Soul from Seoul

Kia describes its Soul (pictured) as a segment-busting car, one that doesn’t fit into the usual motor industry brackets, although early press releases in America described it as a “crossover utility vehicle with a sporty, bold look”. Our attempt at pigeonholing it is that the Soul offers the practicality and stance of a people carrier (or an SUV) within the dimensions of a supermini, featuring a chunky, upright body with a squared-off rump and aggressively flared wheel arches.

Kia Soul

When the Soul goes on sale in Britain early next year, it is likely to feature 1.6-litre petrol and diesel engines with a manual transmission as standard, and an optional automatic with the diesel.

The Soul name has been retained from a trio of concept developments that appeared at the Geneva motor show in March. These were created by Kia’s European design team led by Gregory Guillaume, with input from the company’s chief design officer, Peter Schreyer. All three will be among at least five concept cars displayed on Kia’s stand at the British Motor Show in July.

Schreyer said: “Through a variety of options, accessories and colours, people will be able to personalise their Kia Soul and create a sense of individuality.” Production of the Soul will begin in Korea this September, with a world debut at the Paris motor show the following month.

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Volkswagen Touareg 2

Volkswagen Touareg 2

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Volvo XC90

Volvo XC90

http://www.cars.com/features/autoshows/2006/newyork/coverage/images/07_Volvo_xc90

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