THE

HUMMER

By-
Isshu Mittal
Neha Rani
Aneesh singla
Arumka Jolly
Sahil Vinayak
AGENDA
HISTORY OF HUMMER

CIVILIAN HUMMER

AGREEMENT WITH GM
History
 1979- U.S Army developed
specifications for HMMWV
(High Mobility Multi-purpose
Wheeled Vehicle)
 AM General was chosen the
military contractor to
manufacture 55,000 vehicles
for the Army, it simplified the
name to Humvee.
 Proved successful, Army
orders 48,000 more.
History..
 Fears of saturation in US
military market.
 In 1992, AM General entered
civilian market with Hummer,
known as H1.
 Similar to military version,
civilian H1- 6 feet tall, 7 feet
wide, same V-8 engine, 16 inch
ground clearance but adapted
to federal highway standards
for exterior lighting and
markings.
 Off the highway, it could still get
over the rough terrain.
Reaction from the market

 Dealers wanted to add H1 in their product line as it

was a non competing extension.
 Received 18 % gross margin on selling each
vehicle.
 Minimal amount of money was invested for
promotion.
 Print & TV ads described it as the “world’s most
serious 4x4”
 Sales never crossed 1000 units in a year.
Agreement with GM
 In 1998, GM wanted to introduce its own heavy
duty, SUV.
 Approached AM General to buy ‘Hummer’ brand
name.
 AM General agreed sell the brand while continuing
to build and assemble Hummers at South Bend,
Indiana.
 Prototype H2 was unveiled at Detroit Auto Show in
2000.
 GM made a decision to downplay
Hummer’s military heritage its promotion
strategy. Do you feel this is the correct
decision ? Why or why not?
 “The World’s Most Serious 4x4” to “Like nothing
else”
 New mission was to sell Hummers to ‘‘cool, rich
people.’’
Target Market included :
 rugged individualists,
 adventurous entrepreneurs,
 adrenaline junkies,
 successful achievers,
 and style leaders.
‘‘We’re really not competing in an automotive category.’’
 Do you agree with GM’s decision to
continue introducing smaller, less
expensive versions of the original
Hummer? Why or why not?
 Fall in the sales of H1 and H2:
1. GM demand to its dealers
2. Rising gas prices

Thus, GM introduced two new Hummers:

3. H2 Sport Utility Truck(SUT)
4. H3
This resulted in increase in sales by 24%
 A Quick Rewind:
 H1 -- low sales(1000 units a year)
 H2 – sales increased ( 35000 units a
year in the beginning to still increase)
 H2 SUT – increase in sales by 24 %
 H3 – high sales as it targeted the
midsize population.