Aug18
FRESNO, Calif. -- The future of Hummer remains uncertain, but that's not stopping Hummer from launching a pickup truck.
Hummer will spend a significant amount to advertise the H3T, believing that no matter what happens with the brand, the mid-sized pickup will be a benefit.
"Launching the H3T is valuable for us, whether we opt to keep the brand or not, and to a potential buyer, whether they buy the brand or not," Martin Walsh, Hummer's general manager, said at an event here late last month. "But constant throughout all of that is it's very valuable to dealers no matter what happens because of the revenue opportunities for them and the opportunity that they can bring in new customers."
General Motors insiders admit high gasoline prices and a decline in U.S. pickup sales make the H3T a tough sell. They hope the H3T will sell well overseas until the market here recovers.
Through July, U.S. pickup sales are off 23 percent to 1.2 million. Hummer has 168 dealers in the United States and 224 outside this country.
Marketing Hummer's pickupHow will Hummer market the H3T pickup amid dismal big-truck sales?-- Seek sales through 224 dealers outside the U.S. until domestic market recovers-- Launch H3T marketing campaign on TV in October, centered on traditional media-- Pitch H3T as outdoor recreation vehicle with added pickup utility-- Target males in their 30s who earn $90,000-plus and are into outdoor activities
Significant launch
Hummer will launch the H3T marketing campaign on TV starting in October. The campaign will run through 2009 and be centered on traditional media, Walsh said.
"The launch will be significant because we want to make an impact," he said. "A lot of the focus initially will be TV and print to communicate to the prospective purchaser that we've got a pickup truck."
Walsh characterized the spending as significant but "proportionate to the volume and the impact it'll have on the market. It's a niche player. It's not something we'd overspend on."
Hummer is developing the creative content. When it's done, Walsh said, that content will convey the message that the H3T not only enables people to pursue extreme sports in places where other vehicles could not take them, but it also will give them the utility of a full-sized, four-wheel-drive pickup truck -- in a "fuel-efficient package," Walsh said.
The H3T sticker price starts at $31,495, including shipping.
"It provides that extra utility other than the off-roading, and that's different from what we've done before," Walsh said.
The five-cylinder base engine H3T gets 14 mpg city and 18 highway. The Dodge Dakota, one of the H3T competitors, gets an estimated 16 mpg city and 20 highway.
30-something males
Despite the tough economy and decline in truck demand, Walsh said a market exists for the pickup. Hummer is targeting males in their 30s who earn $90,000 or more and are into outdoor activities.
As for the fate of Hummer, Walsh said GM is studying the cost to revamp the brand vs. Hummer revenue. The company is considering all options, including a possible sale.
Many Hummer dealers say the brand's uncertainty has left them struggling to keep their best salespeople on board and generate showroom traffic because of consumer concerns.
Walsh said the H3T pickup will bring customers into Hummer showrooms: "In the end, we're still running our business, and the best signal we can send to a customer who maybe has some doubts about it is to launch a new product and show how confident we are in the brand."
SOURCE:Automotive News
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This story posted by LeaseTrader.com, the automotive service company that lets people transfer out of their Car Leases early. If you're looking to swap a lease or transfer out of your car lease, please visit www.leasetrader.com