Bachelor of Science in Business Administration

Major in Management
School of Management
University of Asia and the Pacific
SY. 2020-2021

Final Project: Hummer

In Partial Fulfillment of the Requirements for

Project Management

Submitted by:
Cornel, Francis R.
Hernandez, Renzo B.
Velasco, Edson Joelle G.

Submitted to:

Mr. Willy Lim Cuason

July 14, 2020

 TABLE OF CONTENTS

I. Overview……………………………………………………………………………………..4
Hummer………………………………………………………………….…………...4
Deliverables………………………………………………………………………….4
Milestones & Outcomes…………………………………………………………….5
Intended for Senior Management………………………………………………….5
Project Profitability…………………………………………………………………..6
Competitive Effects………………...……………………………………………….6

II. Objectives…………………………………………………………………………………....6

III. General Approach………………………………………………………………………….7

Technical and managerial approaches…………………………………………...7
Identification of project framework………………………………………………...7

IV. Contractual Aspects……………………………………………………………………….8

Agreements Made with Client or Third Party………………………………….....8
Technical specifications…………………………………………………………….8
Summary of the Problem…………………………………………………………...8
Specific procedures for making changes………………………………………....8

V. Schedules…………………………………………………………………………………....9
Each Task with time requirement………………………………………………...10

VI. Resource……………………………………………………………………………………10
Comparison of American made vehicles to American made vehicles sales
performance..…...……………………………………………………………….…11
Estimates of expenses………………………...…………………………………..11
CAPEX and OPEX………...……………………………………………………....12
Project budget………………………………………...…………………………...12

VII. Personnel………………………………………………………………..…………...…....12
Workforce……………………………………………………………..…………….12
Special skill requirements……………………………………………………..….13
Necessary training………………………………………………………………...13
Special legal arrangements…………………………………………………..…..13
Security clearances and nondisclosure agreements………….…..………...…13
Time phasing of all personnel……………………………...…………………….14

VIII. Risk Management…………………………………………...……………..…………….14

4 Stages of Risk Management…………...……………..…………….………….14
Identification of Risk……………..…………………………….………….14
Mechanical Engineering………………………………………....14
Analysis of Probability and Consequences…….……………...15
Risk Mitigation Strategies……………...……………………..…15
Control and Documentation…………………………………..…15

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 TABLE OF CONTENTS

IX. Evaluation………………………………………………………..…………..………....…16
Methods Project grading system, standards and procedures
Ensures compliance……………...………………………………………............16

X. Conclusion…………………………………………....……………………..……….…...16

XI.
Recommendations……………………………………………………………..……....…17

XII. Learnings……………………………………………………………..…………………....17

References……………………………….……………………….…………………..…………….19

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 I. Overview

Hummer

American heavy vehicle and contract automotive manufacture or AM General Corp.

started production of the High Mobility Multipurpose Wheeled Vehicles or HMMWV, or more
commonly known as the Humvee on March 22,1983 for the United States Pentagon to be
used as the primary vehicle to be used by its armed forces. In 1992 General Motors bought
the Humvee design and then created a civilian version of it, to be known as Hummer due to
the rising demand for this type of vehicle. The Hummer weighed over ten thousand pounds
and had a poor gas economy, which many of its consumers and others hated. In the year
2002 GM released a newer version of the Hummer and it was called the H2 which had a
new design from the previous Hummer but was priced high and still had poor gas economy.
Many successful attempts of sabotage were made directly to the vehicles and the company
itself. And in 2005 GM released a newer smaller version of their controversial vehicle in
order to please the people and the market, this was called the H3. It had a smaller body thus
reducing weight and had a better engine thus making the fuel economy better, but due to low
sales and the 2008 economic crisis GM filed for bankruptcy and together with the shutdown
of most of its production cars, this including Hummer which was first to go out the door.
Ending the Hummer Brand was one of the main strategies thought of to save the company
(History. E.,2009).

Deliverables

Source: Features Features That Make Hummer Vehicles Special (liveabout.com)

Figure 1: Hummer “H1” Showrooms USA

Hummer’s main objective was to be the car that would stand out of all cars, to some
it was a symbol of American strength as it was directly related to the military grade vehicle,
the Humvee. The car brand’s deliverables were to make vehicles that would stand out of all
and provide to the growing market of full size to large vehicles. It captured the hearts of
many patriots in the United States as it reminds them of the innovation, the strength and
somewhat size of American power (History. E.,2009).

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Milestone & Outcomes

In 1985 AM General launched and released the project that the Pentagon
was awarded to them which was the High Mobility Multipurpose Wheeled Vehicles or
HMMWV for short was deployed with troops in forward operating and active bases around
the United States and to U.S. overseas bases. It had the best exposure to the public and to
militaries around the world with its extensive use during the Gulf War. In the 1990’s Arnold
Schwarzenegger was very much interested in purchasing a Humvee of his own which also
drew hype around the military vehicle and in 1991 General Motors began and produced a
civilian version of the Humvee which is the Hummer or H1. By 2002 General Motors
released a newer version of the H1 which was then called the H2. In 2005 the final rendition
of the Hummer line was released, and it was smaller than its predecessors and it was called
the H3. The Hummer brand was popular in the United States as its place of origin, but it was
also very popular and recognized internationally as a big, rugged but gas guzzling vehicle.
Hummer in 2006 was sold through three hundred dealers in 34 countries worldwide
(Autoevolution, 2021). But as the financial crisis and economic breakdown in 2008, sales
plummeted, and General Motors filed for Chapter 11 bankruptcy protection. This led to
General Motors to end the production of the Hummer in order to save their other car brands
that are more cost effective and more importantly more popular to the consumer (History.
E.,2009).

Intended for Senior Management

In 1983 the Humvee or its proper name High Mobility Multipurpose Wheeled Vehicles
was only intended for military uses as it was the replacement for the Willys Jeep for their
utility modular vehicle. It was designed to be modular as any weaponry or utility purpose
assets (Kaufman A.,2013). A lot of non-military enthusiasts or what is commonly called as
patriots in the United States found the Humvee as a great vehicle to have, most especially
the famous actor Arnold Schwarzenegger who was the main derivable to the creation of the
civilian version of the Humvee.

The Hummer brand became a hit in sales and with the public as it was a massive
vehicle that is directly related to the military version of itself. Although the automotive
industry and the consumer market were amazed by the creation of the Hummer brand, the
vehicle itself was poorly made and poorly designed for everyday civilian use. The endurance
of the Hummer vehicles was not bad or good, the parts for it were at a premium and the
consumption of gasoline was out of control. The financial crisis was the downfall of the
Hummer brand as the U.S. relied of foreign oil and with the financial crisis present resources
like oil were put at a premium (Walczak J., 2018).

General Motors made efforts to make the Hummer brand more appealing to the
public, releasing newer models from the H1. This would be the H2 that would be still a large
vehicle but had bad fuel consumption. Next would be the H3 and this version of the Hummer
is smaller and has better fuel efficiency. But this was just the last effort of GM America to
save their most popular and or controversial product, as 2009 settled in Hummer was no
longer a brand as GM America shut down its production (Autoevolution, 2021). Analyzing the
data, the researchers saw that GM had great effort with the redesigns but with their

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inevitable failure due to the financial crisis GM does not hold or cannot do anything about it
but to cut losses and end the Hummer line.

Projected Profitability

According to care sales base (n.d.) in 2004 there was a 120% growth in Hummer
sales and in the following year there was 35.06% growth. In 2006 the sales of Hummer
vehicles were at its peak, having 234.62% in growth. This was a great sign for the brand and
the company who carries it, General Motors. This was very promising as this shows that the
brand and its redesign of its main vehicle was mostly effective to the civilian market. In 2007
sales only grew 1.88%. Most of Hummer’s funding went into the research and development
department as their goal for the H3 was to be a more affordable and consumer friendly
vehicle.

Competitive Effects

The first edition of the Hummer had some systems and technologies that were from
its military counterpart, the Humvee. Some of these features were run-flat tires, central tire
inflation system, special lighting, dual fuel tanks, smart bumpers, traction control and driver
information center (Walczak J. 2018). The Hummer stands out in general due to its size,
comparing it to other full size vehicles the Hummer is larger by comparison. The Hummer
was the sign of “Big America”, the strength, the power and capabilities of their nation,
patriots were the one who bought the vehicle for that idea and were the ones who more or
less made what is Hummer back then.

II. Objectives

Hummer was the result of public pressure and the pressure of patriots in the United
States. In the 1980’s design and conceptualization of a vehicle that was intended for military
use was given to AM General Corp. A final contract worth one billion U.S. dollars was
awarded to AM General to produce their approved vehicle. The High Mobility Multipurpose
Wheeled Vehicles or HMMWV or more commonly known in the military industry as the
Humvee, was the main modular vehicle to be used by the United States Armed forces. With
its unique design of being a large vehicle this caught the attention of the consumer market
as it was unique and large (Walczak J. 2018)

The result of this public pressure of looking for a vehicle like that and or wanting to
purchase the exact vehicle which was the Humvee, General Motors was the one how made
Humvees that were to be sold to the civilian market, and here the Hummer brand was born.
The first car to roll out of production was the Hummer or H1. This was a near exact sample
of the Humvee with few changes with the technology and design. This was a big hit to the
consumer market even though the vehicle was flawed with some size issues and gas
consumption

In the year 2002 General Motors had made a newer and more refined version of the
H1, this was to be called the H2. The H2 was still a large vehicle, it still had bad fuel
efficiency and maintenance was expensive. But to some loyal patriots this was no reason to

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buy the H2. Sales continue to grow even with all the controversy it has brought to itself
(Walczak J. 2018)

In 2005 the launch of the newer version of the H2 came out, this was the H3. The H3
was better at fuel consumption, was smaller and was relatively cheaper than its previous
designs. And by 2006, a spike in growth and sales came to GM as the Hummer brand was
quite expensive to purchase (Walczak J. 2018).

A key deliverable of Hummer was to provide a large vehicle which had a specific
significant impact to the culture of the U.S. as a great big person. Hummer also was
targeting these patriots who wanted something near to what their military use. Hummer was
also made to provide a versatile, large and capable vehicle for the everyday work and
activities of civilians.

III. General Approach

Technical and managerial approaches

Hummer is a general motor brand that aims to give a military-like vehicle to the
community.This was to a vehicle that could show the strength of the Americans.This
vehicle's main purpose was to transport military troops and cargo. It caught the attention of
many patriots in the US as a symbol of innovation, strength and power(History. E.,2009).

Identification of project framework

1. Initiation
AM General was tasked to design a vehicle to improve the military to
transportation used for War. Due to the low quality jeeps that were used by
the US during the vietnam war.
2. Planning
The inspiration of the hummer was based on the success of this vehicle
during the gulf war (Kim & Gensser, 2020).AM General Created their first
vehicle High Mobility Multipurpose Wheeled Vehicles or HMMWV, or more
commonly known as the Humvee on March 22,1983.
3. Execution
When AM General Created their first vehicle High Mobility Multipurpose
Wheeled Vehicles or HMMWV, or more commonly known as the Humvee on
March 22,1983. It was later purchased by Arnold Schwarzenegger because
the vehicle caught his eye.He became the first person to own a HMMWV. It
officially went on sale in 1992, later on named Hummer (Kim & Gensser,
2020).Due to the influence of Arnold Schwarzenegger,from the years
1999-2000 Hummer Popularity grew and featured in 32 movies which made
people buy this vehicle(Kim & Gensser, 2020).
4. Review
The Hummer lasted 10 miles a gallon and weighed 10,000 Ibs (Kim &
Gensser, 2020). This kind of model was originally designed to replicate the
vehicles used for the military. Its review described it as a heavy duty vehicle. It

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 was then fixed on their second model H2 which became the top selling
model(Kim & Gensser, 2020).Followed by their 3 model H3, their sales
peaked in 2006 and they managed to sell 70,00 units.This became a goo
pace compared to other brands However overtime due to the quality,
consumers describe the hummer as a symbol wasteful consumption which
led to the brands downfall.Another problem was the high maintenance of the
car for it is not easy to replace its parts (Sandoff, 2021).

IV. Contractual Aspects

Agreements Made with Client or Third Party

Hummer was a game changer the moment it was made available to the public in
1992. The sales were remarkable not until 2009, when General Motors made a bankruptcy
announcement. Amidst the discontinuation of production reports, it was disclosed then that
there were ongoing selling communications between the GM and a Chinese company
named Sichuan Tengzhong Heavy Industrial Machinery in an attempt to continue the
Hummer production (Sherman, 2016). However, the initial deal did not push through and the
value of the Hummer brand was declining due to the high fuel price and low consumer
demand. As a last resort, GM announced its interest in considering possible offers and
Raser Technologies was among the companies who expressed concern. But to no avail,
Hummer was officially phased-out in 2010.

In 2019, different articles reported a Hummer comeback in a more

environmentally-friendly attempt. GM was reported to be developing low-volume electric
pickup trucks that could potentially compete with Jeep (Palmer, 2019). The Hummer, with its
new name Hummer EV, will be on sale this 2021. The GMC, a division of GM, contracted the
Fortnite video game creator Epic Games to create the Hummer EV’s infotainment interface
graphics. Moreover, the safety features of the model can be accessed from the National
Highway Traffic Safety Administration (NHTSA) and Insurance Institute for Highway Safety
(IIHS) websites (Dorian, 2021).

Technical specifications
Summary of the Problem
In 2009, General Motors notably reported a bankruptcy announcement. While this shocked
the industry, several criticisms were already thrown at the brand prior to Hummer’s phase
out. First is that its demanding fuel consumption materialized when the gas prices hiked in
2008. Consequently, environmental issues were also brought up as a serious concern and
significantly took its toll on the brand’s sales. In the same year, the global recession did not
exempt GM and generally slumped its production and sales leading it to bankruptcy and the
discontinuation of Hummer production despite the several attempts of the company to save
the brand.

Specific procedures for making changes

Change is a necessary step in every aspect of business. Be it a minor change or a
big one, it sure would make an interesting difference if it is done with clearer purposes and

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goals. Basically, change is crucial therefore it should be well-planned and organized in order
for it to lead the business in a more distinct path. Interestingly, the National Council for
Voluntary Organizations (NCVO) provided five brief ways in making changes. First is the
need to acknowledge and understand why there should be a change. This step requires a lot
of time for the very root of the problems to be understood in an in-depth manner to be able to
address them well. This step also encourages the business owners to take into account the
social changes that constituted the problem. In GM’s case, global recession occurred, the
price of the gas rose, and environmental concerns became a hot topic. The next step is to
communicate the need and involve people in developing the change. Letting the
stakeholders grasp the problem as well is a massive help in creating a solution. Basically,
this will let everyone know and value the need for change and the procedures it may
encompass along the way. This stage also requires a lot of time for there will be numerous
queries that need to be answered. While some can be answered in an instant, some queries
would take a moment of investigation. The third step to develop plans. Now that the problem
is completely understood and was communicated with the concerned parties, developing the
plan follows. The planning stage includes determining the goals, identifying the to dos and
don'ts, calculating probabilities, creating partnerships, and specifying a step by step process
and timeline. In Dorian’s (2021) Hummer EV article, he included the new features of
Hummer and its capability to possibly compete against the famous brands nowadays. The
next step is to implement. It is important that the concerned parties are involved and are
aware of their role in this change. And lastly, evaluate the progress and celebrate success.
In GM’s case, the Hummer EV is yet to be released. GM should be very keen on its market
strengths and weaknesses and be prepared for the possible outcomes.

V. Schedules

Source: How car design works, start to finish | Torque News

FIGURE 2: Stages in Creating A Car

The researchers assume that the process of designing the Hummer went through
this type of stage but with some modifications. As General Motors took the platform from the
Humvee, the military version of the vehicle, they may have skipped some steps in this chart.
GM may have begun in the interior sketching and modeling part as there is an existing

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platform for the conceptualization of Hummer. For the next generations of Hummer, the H2
and H3 they may have gone through all the stages from the beginning till the end. Since this
is a car, there are many departments and stages it needs to go through before this design
and development stage, but the researchers looked more into how Hummer was made as it
was not a concept but an actual idea as it was derived from public voice and pressure.

Each Task with time requirement

In the design and development stage of car manufacturing, time is of the essence as
competitors are pushing to release a newer and better car. But for Hummer the time and
development of the 1st car, the H1 was only given a few years of design, development, and
refinement. This led to many issues that the public has experienced, most notably their fuel
economy. This was one of the contributing factors that would lead them to their failure in the
upcoming years as they are to be known as gas guzzling cars. It is vital that in designing
and engineering a car, time and proper research is made so that small and large mistakes
like what Hummer did can be avoided.

VI. Resource

Estimates of expenses

Source: GM Could Save HUMMER, Two Other Bidders Emerge - autoevolution

Figure 3: Hummer Annual Sales Report

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Source: Ford U.S Sales Figures (carsalesbase.com)
Figure 4: Ford Motor Company Annual Sales Report

Comparison of American made vehicles to American made vehicles sales performance

In the United States there are car manufacturers that have been established as early
as the industrial age, these cars were merely carriages with combustion and or steam
powered engines. Some of the pioneers of combustion cars are Ford. For the sales and
other financial details, the researchers are going to compare the financial details of Ford with
Hummer.

Comparing the sales and growth of Ford with Hummer beginning from 2003 the
researchers can say that Hummer had more sales and a larger growth rate than Ford. 2003
marks the launch of Hummers 2nd generation of Hummer vehicles which is called the H2.
Hummer has outperformed the sales in terms of production and growth of Ford from 2003 to
2008. But as the financial crisis hit in 2008, the following year, 2009 saw a drastic change as
both companies experienced massive losses and negative growth. 2010 as seen in the chart
above, Ford recovered and experienced regrowth and an increase in sales, but Hummer did
not. Hummer ended production of the H2 and H3 in 2010 and only had inventory left in their
units. From 2010 to 2013 Hummer sales plunged and did not recover, making General
Motors move the right one as they have stopped production and ceased the brand
altogether.

Estimates of expenses

To start up a car manufacturing company, it would roughly cost 2 billion U.S. dollars
for initial operations. Another 3 billion U.S. dollars would be needed for the sustainability of
the company as the said company would need to put in a large amount of funding and time
to their research and development. This would also depend on how large one’s initial work
force is and their skills and capabilities (Westbrook J., 2019). External factors can be used to
save some funding, having a third-party researcher or designer be hired for one’s products,
instead of them putting up a department of their own.

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CAPEX and OPEX

For the examination of financial statements, the group utilized Toyota Motor
Corporation’s financial statements as they have accessible statements from the year 2000 to
2020 and this is to be assumed for Hummer’s performance.

Toyota had reported 7 billion yen in operating expenses for the fiscal year
2003 and 27 billion yen for the fiscal year 2020.The have also reported 743 million yen for
their capital expenditure for the fiscal year of 2003 and 3 billion yen for the fiscal year of
2020 (Toyota Archives 2021). Differences in costs can be due to technological
advancements and other models made throughout the years. Hummer being popular since
the late 1980’s it was more of a barebones car, rudimentary mechanics, straight forward
controls and purposes. But as 2003 began the new H2 was released, there were more
amenities available and additional options for the vehicle’s improvement available. It can be
assumed with the number of vehicles produced by General Motors for Hummer; the
operating expenses of Toyota Motor Corporation is lower than Hummer’s production. With
regards to capital expenditure, it can be assumed that Hummer’s is lower than Toyota due to
the differences of years and establishment. The operating expenses in Toyota had a large
difference from 2003 to 2020, this can be due to the new features, addition of other models
and technological advancements made. This is where Hummer failed to focus on, the H2
was supposed to be a better version of their first car the H1 which was large for roads, high
maintenance, rudimentary car aspects and bad fuel economy. That is why Hummer’s
operating expense is assumed lower than Toyota.

Project Budget

The product budget for the Humvee was one billion U.S. dollars as it was for the
United States Armed Forces main modular vehicle. It can be assumed that the project
budget for the initial Hummer, the H1 is lower than this as it has only copied its platform from
the Humvee.

VII. Personnel

Workforce

In 2008, when the bankruptcy announcement was made, not only the discontinuation
of Hummer production was at risk but also the welfare of the laborers, particularly their
workforce from Mishawaka, Indiana. However, Hummer may have been phased out, GM
continued to employ workers through these years having an approximately 155,000
employees worldwide as of December 31, 2020. Its headquarters is located in Detroit,
Michigan and has 122 facilities across the United States. On a more global perspective,
GM’s manufacturing operations occur in six continents across 22 time zones that speak 75
languages (General Motors, n.d.).

GM’s work force is relatively big considering the facilities it has across the US and
across the continents. In addition, IT centers, call centers, and GM Financial Service
Centers. Moreover, aside from Hummer, GM’s brands include Chevrolet, Buick, GMC and
Cadillac which are notable names in the field.

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Special skill requirements
The redefined features of the Hummer EV pick up and SUV presented in the GMC
website are competitive in terms of battery efficiency, off-road dominance, revolutionary
designs, and other distinct features which make its innovative capacity seriously on the next
level. For it to become possible, GM made sure to work with personnel whose experience
and knowledge in the automotive industry are remarkable. Basically, the key skills to become
an automotive engineer includes effective technical and problem-solving skills, commercial
awareness, creativity, interpersonal, communication, and presentation skills, good
organizational skills, and the ability to work as part of a team (Target Jobs,
n.d.). GM primarily values inclusivity, innovation, teamwork, accountability, and integrity
(General Motors, n.d.) so having a workforce that shares the same organization values is
important.

Necessary training

The end of Hummer’s journey in 2010 wasn’t the only setback GM has faced
throughout its automotive career. However, with the emergence of high-technology autos,
the company started to share its Zero, Zero, Zero vision to the world. This vision aims to
have zero crashes, zero emissions, and zero congestion. To make this vision a reality, the
GM Automotive Manufacturing Electric College (AMEC) was born. It was initialized by Jason
Garrison, a GM global technical integration engineer, and only started this year because of
the pandemic. AMEC is where GM employees, new hires and veterans, receive their electric
vehicle training with specialization and new skills. The college also offers training for skills
needed to work on complex electrical systems for internal combustion engines (Lopez,
2021).

Special legal arrangements

GM commitment in delivering a world-class customer experience does not only apply
to literal customers per se. The company has created The Programs wherein the GM
employees are eligible to become part of. This enables them to purchase vehicles that are
significantly lower compared to the market price. The issued guideline includes the other
program rules and restrictions, as well as the eligibility period, and more (General Motors,
n.d.).
More importantly, in the General Motors’ website, other legal matters can be
navigated easily at the bottom most part of the web. This includes the copyright/trademark,
privacy statement, security vulnerability disclosure, social media policy, supply chain
responsibility, texting policy, and the user guidelines.

Security clearances and nondisclosure agreements

Security clearance is a crucial security background investigation that allows an
employee to be eligible in accessing classified information. By requiring a security clearance,
this means that the information the employee is about to access is highly sensitive.
Meanwhile, the nondisclosure agreements or NDAs are the company’s way of securing and
protecting valuable information. As for the General Motors, their NDAs are not available for
public viewing however, they made sure that the consumer rights are secured as well
through their user guidelines and their security vulnerability disclosure. The disclosure

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encompasses the potential security reports that are related to GM anybody could submit and
its restrictions as well.

Time phasing of all personnel

Time phasing of employees is basically about their overall journey in the company.
While there are different stages a worker could advance to, GM never specified their time
phasing guidelines. However, the company is doing its best to attract and retain employees
and help them understand and put into action how they contribute to an inclusive
environment. In 2020, amidst the emergence of the global pandemic, GM has managed to
bring back white-collar employees back into the workforce. The Detroit Free Press reported
four phases GM planned to implement. Phase one includes employees who have to be
on-site to do their jobs for a limited amount of time only. Phase two allows employees who
are more effective by coming into the office for a limited time as well only. Phase three
applies to those workers who can do their job remotely and can return to the office last. And
phase four is basically the resumption of normal office operations (LaReau, 2020).

VIII. Risk Management

There are various risks Hummer had during its entire run over the years. There were
low risks with low consequences while there were also high risks with high consequences.If
not managed well this situation would bring the downfall of the entire company.A project
manager must follow the 4 stages of the risk management to prevent these situations from
causing damage to the company. First, a project manager must identify every possible risk
that may come when a project is being done. Second, they must analyze Probability and
Consequences. Third, they must create Risk Mitigation Strategies. Lastly, they must control
and document all risks for future references.

4 Stages of Risk Management

Identification of Risk

Mechanical Engineering

In a project team there are different kinds of departments that handle different
task.Some may be working in the marketing department, and others might be part of the
finance department.However, in the case of for Hummer, the company would focus on the
risk that comes in the Mechanical department.
According to the Merriam-Webster's Dictionary a Mechanical Engineer is a branch
involving the design, production, and operation of machinery. They are responsible for
overseeing that mechanical side of the product itself from its design to its use. However
there are instances that these engineers make mistakes that can cause low and high risk to
the consumer. For Hummer the quality of the car will ensure the safety of the passenger.
That is why it is important for companies to get the experienced and intelligent engineer that
can create a good quality car. One of the risks that led to the company's downfall was the
mechanical problems in the car. Such as Wasteful consumption and high maintenance on
parts (Sandoff, 2021).In addition to this it will be important for the Hummers to be up to date

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and daily updated to create a better version for the car. This is to be a contender to other
brands,these updates may be caused by technical or mechanical problems users have.

Analysis of Probability and Consequences

The Probability and Consequences of a Mechanical Engineer is high. They are the
ones that overlook the product that will be used by the consumer. The reason the probability
is high is because this Vehicle will be used as a type of transportation that is used by millions
of people. This may bring daily problems on a daily basis. In relation to Mechanical
engineers, the product would have a high probability of having mechanical problems.
Major consequences of engineers overlooking concerns and problems can cause
major problems (1) Transfer to other brands of cars (2) creating a bad reputation that can
cause the decrease in sales (3) Run the company out of business.

Risk Mitigation Strategies

In order to mitigate the risk that comes with Mechanical engineers, Hummer should
find people that are experienced Mechanical Engineers. These people must have great
problem solving skills.Also these people must be great in working in teams so that they are
able to communicate properly while solving problems together. Having a skilled team will
enable the hummer to have lesser problems and lead to satisfactory customers.In addition,
having skilled people can provide insights or improvements that may be made for the
company.

Control and Documentation

To control every risk that may happen there should be a head engineer overlooking
the process of maintaining and improving the quality of the car. This person must also have
the capabilities of a leader. To Delegate tasks that must be worked on immediately. The
person must also have a fast thinking process because problems are occurring daily. To deal
with these problems and fix them right away. In addition this person must know how to take
others opinions to build plans for improvement that may be an asset for the company.
He must then record everything that has made an impact for the company negative
or positive. This is to have a may organize and quicker response into solving
concerns.Moreover they must also record all proposals made by fellow workers.These
recording will be given to directors of the company and shareholders for their implementation
Hummer was one of the leading brands in cars for a short period of time(Kim &
Gensser, 2020).Initially the brand was liked by a lot of people; however eventually it dropped
out due to its mechanical problems. Their problems included Wasteful Consumption on
Gas,Bulkiness, Size, and Maintenance. Hummer Failed to recognize and solve these
problems, leading to their downfall.

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IX. Evaluation

Methods Project grading system, standards and procedures Ensures compliance

Online articles name the Hummer EV as the “off-road beast”. With its salient
specifications and features, it is anticipated to offer an incredible driving experience.
Interestingly, the Hummer EV’s features were tested virtually which significantly shortened
the creation process. Since it will be an electric-powered pickup truck, its mechanical
aspects are simpler than a gasoline-powered vehicle. However, real vehicle testing is still
required in order to ensure the brand’s safety and efficiency. In an article released by the
GMC Pressroom (2020), the specific details of Hummer EV were laid out. From the standard
settings to Terrain mode, the numbers are clearly implying the off-road beast’s capacities.

As for the company’s standard and procedural compliance, in their codes of conduct,
they specified means to ensure a safe workplace through acting with high performance and
high integrity, knowing how to recognize potential workplace risks and reporting any safety
concerns, following the law and safety procedures, offering feedback to colleagues if they
are not working safely and accepting feedback when offered, reporting safety concerns, and
being proactive and finding ways to make their workplace safer. They also implement strict
cybersecurity and focus on their customer’s data through partnering with cybersecurity
experts. Most importantly, they make sure to create brands that are world-class, market
competitive, and innovative auto features (General Motors, n.d.).

X. Conclusion

In Conclusion, Hummer had the potential to become one of the main Car Brands in
the US or even worldwide. They had a unique kind of design that made them stand out from
every other car. The 3 Major reasons why Hummer started to lose its sales was due to
Pricing, Global Recession, Environmental Concerns and Bankruptcy. This could have been
prevented if Hummer created proposals to tackle these problems. This is one of the reasons
why Managers should have the mindset of “No Problem is too big or small, any problem
should be solved”. If Hummers had a different kind of approach they would have retained
their company and increased its sales for the next few years.

From Getting a design from the military to creating a brand that is known worldwide.
Till today the Hummer brand is not forgotten. This brand has been brought down for
years.The downfall of hummer was due to the failed approach to their problems. This study
determined that Hummer had huge potential to become a leading brand for cars. The
company failed to maintain these problems.Instead of Solving these problems GM tried to
sell hummer for at least 2 years after it reached their first bankruptcy(Bunkley,2010). This
was a fatal decision, by avoiding the problem instead of fixing it is something a manager
should not have.

Gaps and the Erring sector

Hummer wasn't able to handle the overwhelming problems that were caused by the
car over the years. As mentioned earlier the 3 Major reasons why Hummer started to lose
its sales was due to Pricing, Global Recession, Environmental Concerns and Bankruptcy.

16
Hummer wasn't able to tackle these problems. The main foundation was the mechanical
problems brought on by the car. GM wasn't able to add features necessary to satisfy
customers. Based on the research they focused more on the promotion of the car instead of
the improvements needed. This meant that GM wasnt able to maximize the full potential
Hummer had to offer to its users.

XI. Recommendations

To prevent a project from falling, the project head should focus on providing a
satisfactory experience to customers.Instead of focusing on expansion of the brand, the
project manager must focus on addressing the problems in the practical side of the product.
This can be done taking into account the concerns made by customers and by eliminating all
errors and issues that come in the car. This could’ve been done by hiring/consulting
mechanical engineers to address the said problems. In addition, he/she should not leave any
problem unsolved, whether it's small or big, as this would pile up and would be harder and
more expensive to fix.
Moreover,the project manager must also be competitive. They must be able to
generate new ideas or be able to lead a group of people who will solely focus on
development of new ideas for the car to keep up with the competitors. He/she must always
come up with innovations/models that would help GM improve Hummer. This can also be
done by hiring marketing personnel that would identify the market needs and demands so
that the mechanics can create ideas out of their opinions. Having more influencers beside
Arnold Schwarzenegger to promote the car. In Relation to the engineers proper testing of the
car would help them figure out improvements that may be added or removed for future
models.Another feature a project manager should have is the ability to adapt to the
environment. This allows a person to have good communication skills and adapt to essential
problems.It is important for a company to be innovative to stay on the market and to be a top
competitor in the industry. Getting ideas is important for a manager but only one person can
come up with many ideas.It is important to have every possible idea that can come up.

When GM started to receive these problems given by its users.It is recommended

that each problem should be handled one at a time. First problem that would be fixed is the
Wasteful Consumption of gas that the Hummer has. This was one of the main concerns of
Hummer. Due to the global Recession that happened in 2008, people who wanted to get this
brand couldn't because of the consumption Hummer had on Gas, Leading to a large
decrease in sales for the brand. As for the problem in the bulkiness of the car, it could be
promoted differently as an off road car. This will maintain the sales of the car while having a
special use for the car.Everything actually builds around these problems. Having this goal
would essentially branch out to everything that is said above.Hummer wasn’t able to do it
well. Hence, the project manager should’ve focused on the goal and built the plan around it.
It is important to learn the impact of cars socially and environmentally.

XII. Learnings
A recap of what you learned from theory and from field inspection

Hummer is making a comeback as Hummer EV after a decade since it was phased

out. The brand was a game changer for General Motors since it significantly escalated its
name in the automotive market and brought it down again when it announced its bankruptcy.

17
In this field inspection and investigation, we can learn that there are a lot of factors to be
considered in creating a product, especially automotive where the amount of money,
expertise, and time invested is a big deal.

First is that loss is inevitable, but how did GM respond to it? From what we’ve known,
the company had attempted several times to save Hummer from being completely phased
out. While it was an unfortunate event, we’ve learned from everything that was discussed
above the loopholes GM missed. These loopholes are the high fuel demand of the vehicle
which is a conflict not only with the high fuel price but also with the environment. Consumer
and market shifts can be driven by environmental pressure hence the company should have
been more careful with its resources.

Now that the company is bringing back Hummer EV as an electricity-powered

vehicle, we can say that they have learned from their setback and drew inspiration from it in
creating a new product. Interestingly, bringing back Hummer in a better version is a good
marketing strategy done by GM. In fact, the reservation for the limited Edition 1 was marked
sold out 10 minutes after the booking was opened on October 03, 2020 for the pickup and
on April 3, 2021 for the SUV (Priddle, 2021). Basically, the whole concept of Hummer EV
was of people’s interest considering its specifications and eco-friendly commitment. From
this, the decision-making of the company leaders was effective, and the planning stage must
have taken a long time before the general concept of the Hummer EV materialized.

From this inspection, we can learn the importance of being flexible to social and
environmental changes. Human interests are constantly shifting, and companies should be
able to adapt. Technically, there are ways or specific procedures in making changes
however, it is still a case to case basis. Just like the Hummer EV which took several years
before its revival was announced to the public. Basically, resources should be considered,
and the risks should be taken into account as well in order to come up with risk management
procedures. All in all, not only General Motors can learn from Hummer’s journey but also
other companies who wish to prevent the same thing from happening. It could also serve as
an inspiration to them that they could always bounce back in the business no matter how
long it takes.

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 PEER RATING EVALUATION

Member’s Name Member to be Rated Grade

Francisco Coronel Renzo Hernandez 1.00

Edson Velasco 1.00

Average Total Grade 1.00

Renzo Hernandez Francisco Coronel 1.00

Edson Velasco 1.00

Average Total Grade 1.00

Edson Velasco Francisco Coronel 1.00

Renzo Hernandez 1.00

Average Total Grade 1.00

21