GM's Hummer may add more models, CEO Wagoner Says
July 11, 2002
Milwaukee, Bloomberg News reported today that General Motors Corp.'s Hummer brand has about 3,500 orders already and the initial response to its Hummer H2 model is increasing the likelihood of future versions, the company's chief executive officer said.
"We expect the vehicle to sell out the first year and the second year as well," CEO Rick Wagoner said in an interview as the first stand-alone Hummer dealership opened in Milwaukee.
The H2 is the first new Hummer model for General Motors since it bought marketing rights for the brand from AM General Corp. in 1999. AM General builds the military-style H1 and the new H2 for the automaker. General Motors wants Hummer to help it create a more youthful image, and expanding the brand also would let the company command premium prices from off-road enthusiasts.
General Motors sold 768 Hummer H1s last year at about $100,000 each. A new AM General factory in Mishawaka, Indiana, can make as many as 40,000 H2s a year. The plant will employ 1,100 workers on two shifts by August when it reaches full production speed, AM General Chief Executive Jim Armour has said.
John Bergstrom, owner of Bergstrom Hummer, the stand-alone store in Milwaukee, said the dealership delivered its first Hummer today and has sold 63 of the vehicles. The dealership needs to sell 600 a year to cover its costs, he said.
Detroit-based General Motors shares fell $3.53, or 6.9 percent, to $47.61.