GM to Halt Hummer H1 Production

as posted by the AP -

DETROIT (AP) -- The 2006 model year will be the last for the Hummer H1, the hulking, gas-guzzling status symbol that has attracted celebrities and off-road enthusiasts but has drawn the ire of environmentalists.

General Motors Corp. announced plans Friday for the H1, which is the foundation for the automaker's Hummer brand. Based on the military's Humvee, the about 12,000 put on the road since 1992 defined the Hummer name.

"It's a reflection of where we're going with the Hummer brand," Hummer general manager Martin Walsh said of the decision. "The Hummer DNA still resides in the Humvee. ... It will always be the core from where we come."

GM expects the last H1s to be built next month.

Walsh said Hummer plans to focus on models with broader appeal instead of the niche-market H1. Since taking over the Hummer name in 2000, GM has introduced the still hefty H2 and a midsize H3 sport utility vehicle.



The H1 gets about 10 miles per gallon, but Walsh said rising gas prices didn't factor into GM's decision. He noted that H1 buyers typically have been less sensitive about gas prices than most other drivers.

The H1 attracted well-heeled drivers looking for a military-style vehicle with an intimidating stance. For the 2006 model year, the H1 was offered as a high-performance H1 Alpha that costs about $130,000 to $140,000.

The vehicle first was marketed to the public as the Hummer in 1992 by AM General, which also makes the military version. Under a 1999 deal, GM bought marketing rights to the Hummer name and called the vehicle the Hummer H1.

Last year, GM sold 374 H1s, down 16 percent from 447 in 2004.

AM General, which builds the H1, H2 and Humvee in Mishawaka, Ind., said in a statement that it doesn't plan to cut any jobs as a result of the decision. GM said workers there were expected to be shifted to military production.

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