Rough ride ahead for Hummer

By Stan Szecowka

editor@gulfweekly.com

Hummer, one of the Middle East’s best loved motor vehicles, could come under new ownership after General Motors revealed it was launching a strategic review of the brand.

GM is trying to re-engineer its business to focus on less petrol-intensive vehicles to satisfy US and European consumer demands for smaller, cheaper and more environmentally-friendly cars.

In Bahrain and neighbouring Gulf states – where motorists have not been hit by rising prices at the fuel pumps – the high-wheeled, multi-purpose military-style vehicles are as popular as ever.

In fact, the first Hummer Driving Academy outside the US was only opened near the Bahrain International Circuit (BIC) last year by iconic motoring figure, Bob Lutz, GM vice-chairman of global product development.

The future of the region’s first dedicated off-road driving school, however, remains bright despite the turmoil surrounding GM which is set to close four US truck plants and launch an electric car.

Steven Umfreville, BIC’s commercial director, said: “BIC is not worried about the future of Hummer in the region or the ‘overview’ that is going on at General Motors. As a global company it acts on market demands and we have a different one from the States.

“We are very fortunate in the Middle East because petrol is reasonably priced and Hummers are a very attractive proposition in this region.

“In my opinion the Hummer can stand alone because it is a lifestyle brand – it is the best 4x4 vehicle that you can get your hands on.

“The Hummer Academy is run at different levels. We are supported by GM with the vehicles and when we have a course running we employ a number of local qualified instructors, six or seven – it all depends on the grid and the amount of people on the course.”

Up to a dozen drivers at a time take part in the courses driving H2 and H3 vehicles.

Ironically, GM recently announced a 34 per cent rise in sales in Bahrain over the first quarter of 2008 compared to the same period last year.

Hummer, Chevrolet, Cadillac, GMC and Saab saw their sales in the country rise to 650 units, following on from a similarly strong performance in 2007 when the company grew by 10 per cent.

GM led the sales surge in Bahrain, with customers buying 176 per cent more cars than in the same period last year.

Terry Johnsson, president of General Motors – Middle East operations, said: “It says a lot for the high regard in which General Motors is held in Bahrain that, in the year that the company celebrates such a remarkable milestone as its 100th birthday, the kingdom’s new vehicle customers are buying more GMs than ever.

“The appeal of our cars can be attributed to the design and technologies they incorporate, our customer-focused strategy and the hard work put in by our dealers, National Motor Company and Mannai Motors.”

Mini Hummers, imported from England, are also popular in Bahrain. Golfers have been snapping them up in readiness of the Royal Golf Club’s opening at Riffa Views in November.

“Although they appear slightly larger than a standard golf buggy they weigh the same and have less of an effect on the course due to far better weight displacement.

Weighing in at 2.6 tonnes, its typical bigger brother can only do between 10 and 15 miles on a gallon of fuel (roughly 15 litres per 100km), compared with 30 to 50 miles for a Volkswagen Golf.

But GM only sold 12,243 Hummers in the US during the first four months of the year – a drop of 29 per cent on 2007.

The Hummer’s problems have delighted green campaigners who view the vehicle as the ultimate in motoring irresponsibility.

Opposition to these cars has occasionally turned violent. In California, radical environmentalists have set fire to several Hummer showrooms.

Indian auto companies currently rank high in the global pecking order. Merchant bankers are understood to have approached both Tatas and Mahindras for GM’s iconic Hummer brand.

According to auto industry sources, the successful completion of the Jaguar and Land Rover takeover has turned Tatas into hot property in the auto market.

Mahindra and Mahindra (M&M), which was also in the fray for the two Brit brands, is the other Indian company that merchant bankers are approaching. Neither company has reportedly taken a definitive decision on the deal yet.