By Mike Colias and Suzanne Vranica 

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 10, 2020 16:37 ET (21:37 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.
General Motors (NYSE:GM)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more General Motors Charts.
General Motors (NYSE:GM)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more General Motors Charts.