By Mike Colias and Suzanne Vranica
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (January 11, 2020).
General Motors Co. is resurrecting the Hummer name on an
all-electric pickup truck to be sold under the GMC brand, according
to people familiar with the matter, reviving a once-popular yet
controversial badge that was phased out a decade ago.
GM has enlisted NBA superstar LeBron James to promote Hummer's
return, including a plan to air a commercial during the Super Bowl
next month, said one of these people and another person with
knowledge of the advertising plans.
The new Hummer model, which is expected to go on sale by early
2022, is likely to be sold in small volumes as a rugged, jeep-like
pickup truck for off-road enthusiasts, said people briefed on the
strategy.
The vehicle will be among the first of several large,
battery-powered SUVs and pickup trucks that GM is expected to roll
out over the next several years.
As of now there are no plans to establish Hummer as a
stand-alone brand, which it was before GM discontinued it in 2010
in the wake of the company's bankruptcy, these people said.
Rather, the Hummer electric pickup will be sold as an individual
model within GMC, these people said, a pricey, premium truck brand
that has emerged over the past decade as a bigger contributor to
GM's bottom line.
GM's move to bring back the Hummer as an electric-model is an
unexpected twist for a name that became a symbol of gas-guzzling
excess. Hummer went from heady sales growth as a status symbol in
the early 2000s to a frequent target of environmentalists later in
the decade, as gas prices spiked and sales tanked.
The planned Hummer truck is the latest example of Detroit's auto
makers broadening their truck and SUV lineups to boost
profitability, while largely purging lower-margin passenger cars
from their lineups.
Auto makers and startup companies also are rushing to bring
electric trucks and SUVs to the U.S. market, convinced there is a
niche of buyers willing to pay a premium.
Tesla Inc. has reported strong interest in its Cybertruck, a
futuristic-looking vehicle scheduled to arrive by late 2021. Ford
Motor Co. is working on an electric F-150 pickup. Michigan-based
Rivian Automotive plans to roll out an electric pickup and SUV by
late this year.
GM, Ford and Fiat Chrysler Automobiles NV derive the bulk of
their profit globally from large SUVs and pickup trucks, analysts
say, and are betting there is room for more models in their
showrooms.
The companies have been trying to capitalize on the nostalgia of
nameplates from their past as they broaden their offerings.
GM executives have talked about the possibility of adding more
rugged, off-road models to challenge the rising popularity of Fiat
Chrysler's Jeep brand.
Barclays analyst Brian Johnson said a strategy to put Hummer
under the GMC banner makes sense as a way to leverage a well-known
name without building costly sales and distribution infrastructure
around it, which hurt Hummer last time around.
"Had gas prices not skyrocketed, and had they perhaps marketed
it within another brand as opposed to having to set up
infrastructure, maybe it would have stuck around longer," Mr.
Johnson said.
The Hummer name is derived from the military vehicle known as
the Humvee, which is still made by AM General of South Bend, Ind.
GM acquired the civilian version in the late 1990s and aggressively
expanded its dealership network while gaining attention from
celebrity owners like Arnold Schwarzenegger.
Early Hummer models weighed 6,000-plus pounds and returned just
10 miles a gallon in average fuel economy. A Sierra Club official
once said Hummer "embodied the worst impulses of the American auto
industry."
The Hummer model and other electric trucks will be built at GM's
Detroit-Hamtramck assembly plant, the people familiar with the
matter said. The factory had been slated for closure before the
company in October committed $3 billion to overhaul the factory. GM
has said it would build an electric truck at the plant but hasn't
offered specifics.
Mr. James has a long list of endorsements, including a lifetime
deal with Nike Inc. Forbes ranks the Los Angeles Laker as the
highest-paid player in the National Basketball Association and
estimates that he will bring in $92 million in salary and
endorsements for the 2019-2020 season.
Terms of GM's deal with Mr. James couldn't be learned.
GM has enlisted the help of athletes to help plug their
vehicles. Tiger Woods, Shaquille O'Neal and Peyton Manning have all
appeared in Buick ads while golf legend Arnold Palmer and former
National Football League player Tiki Barber have pitched for
Cadillac.
Auto brands, such as Toyota, Kia and Hyundai, have had the
largest footprint on the Super Bowl for about a decade.
GM also frequently advertises during the big game and has used
the event over the years to promote many of its brands such as
Cadillac and Buick.
In 2006, it aired a Hummer commercial during the Super Bowl that
featured a Godzilla-like monster falling in love with a giant
robot. The two eventually give birth to a red Hummer.
Thirty-seconds of ad time during this year's big game, which
will air on Fox, sold for as much as $5.6 million. Fox and Wall
Street Journal parent News Corp share common ownership.
GMC has been a bright spot for GM in recent years, buoyed by the
emergence of its high-end Denali line into a de facto luxury
sub-brand. Last year, GMC sold about 140,000 Denali vehicles at an
average price of nearly $55,000 -- a level at or above many luxury
car brands, according to a presentation GM gave to investors last
month.
Hummer was one of four brands GM shed around the time of its
2009 bankruptcy amid criticism that the company had a confusing and
costly mix of overlapping brands. At the time, some dealers said
they lost millions of dollars invested in Hummer stores.
Ben Foldy contributed to this article.
Write to Mike Colias at Mike.Colias@wsj.com and Suzanne Vranica
at suzanne.vranica@wsj.com
(END) Dow Jones Newswires
January 11, 2020 02:47 ET (07:47 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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