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General Motors to End Hummer H1 Production
Hummers often have been associated with celebrities who owned them, such as actor Arnold Schwarzenegger. He was AM General's first civilian customer, buying a custom-made conversion of the military model as well as civilian production models.
Schwarzenegger once owned a fleet of Hummers but now has just three. The California governor's aides say he rarely drives them anymore.
  In this photo released by General Motors, a 2004 Hummer H1 is shown. The 2006 model year will be the last for the Hummer H1. General Motors Corp. announced the plans Friday, May 12, 2006 for the H1, which is the foundation for the automaker's Hummer brand. Based on the military's Humvee, the 12,000 put on the road since 1992 made the Hummer name. (AP Photo/General Motors) (AP) Updated Financial FeaturesSave & Share |
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The Hummer's critics include the Sierra Club, which has faulted the vehicle for its bulk and poor gas mileage. Dan Becker, director of the Sierra Club's global warming program, welcomed the news, which comes as Congress tackles fuel economy standards and some drivers face $3 gas prices.
"The timing is pretty amazing," Becker said.
Last year, GM sold 374 H1s, down 16 percent from 447 in 2004.
GM is working to turn around its North American automotive operations and this week announced its first quarterly profit since 2004. Last year it announced plans to cut 30,000 jobs and close 12 facilities by 2008. It also has stockpiled parts in case workers at supplier Delphi Corp. go on strike.
AM General, which builds the H1, H2 and Humvee in Mishawaka, Ind., said it doesn't plan to cut any jobs as a result of the decision. It said workers there were expected to be shifted to military production.
With the war in Iraq, the end of H1 production comes at a time when military demand for Humvee has increased, said AM General spokesman Craig MacNab. Publicity surrounding the Humvee in the Persian Gulf War _ and the drop in military demand afterward _ helped lead to the civilian model.
"The military production is way up, the civilian production is way down," MacNab said. "You can't make a business case for making any investment in the civilian vehicle. ... It's a good time to stop."
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