25 Feb 2010

End of the road for the Hummer

8:30 pm on 25 February 2010

General Motors is phasing out its once-popular Hummer brand. Hummer sales have fallen more than 80% since 2007.

The American car giant was in negotiations to sell Hummer to a Chinese company by the end of the month, but the deal has fallen through.

The collapse of the deal is another setback for GM, which had been working to shed unprofitable brands and focus on its core brands - Chevrolet, Cadillac, Buick and GMC - after emerging from bankruptcy in July.

GM says stopping Hummer production will put about 3000 jobs at stake, including those of plant workers and dealers, of whom there are 153 in the United States.

GM says it will continue to honour Hummer warranties and provide service support and spare parts to current owners around the world.

The BBC reports Hummers were originally built as military off-road vehicles by a company called AM General.

GM bought the brand in 1999, but sales have since fallen. Hummers weigh up to five tonnes and have fuel consumption of about 15 miles per gallon.