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Like it or hate it, many people have their opinion of General Motor’s Hummer brand. It may have its fans, but it seems that the economy has finally turned the tide on this motor giant. GM has announced that it will shut down production of the Hummer brand.
The brand was slated to be sold to the Chinese company, Sichuan Tengzhong Heavy Industrial Machines Co. They were, however, unable to get clearance from Chinese regulators in time, and the deal fell through.
Though GM will discontinue Hummer brands, customer service will not be cut off. GM will still continue to honor Hummer warranties for those customers who have them.
The High Cost of Hummers
One of the reasons the Hummer may have declined is the cost to own the car. According to Intellichoice, the cost of ownership for a 2009 Hummer H2 4-door SUT Sport Utility Pickup is $78,626 over five years.
The cost breaks down as follows:
- Depreciation: $36,047
- Financing: $8,969
- Insurance: $10,695
- State Fees: $553
- Fuel Cost: $19,847
- Maintenance: $1,791
- Repairs: $724
One of the highest numbers on the list is the cost of fuel. Rising fuel costs could be another contributing factor to the brand being discontinued. Sixteen miles per galloon is hardly thought of as fuel-efficient. That, however, is the average miles per gallon that the H3, the most fuel-efficient car in the Hummer line, has to offer. In a time when fuel efficiency is on everyone’s mind, this can raise red flags.
Bigger Car, Bigger Insurance Cost
High insurance premiums may also have lent a hand to making a Hummer expensive to own. According to AOL Autos, a Hummer is the eighth most expensive car to insure.
Many people may not understand the correlation between a large car and higher insurance premiums. A large car, however, can inflict more dollar damage on the car it hits. Since insurance may have to cover the other car, the company may charge more to cover a larger vehicle.
This is often the case with a car like a Hummer. Usually, when two cars collide, the cost of repair for each car is approximately $3,000. However, because the Hummer is so big, it often does more costly damage to other cars.
In fact, the Hummer holds the top three spots among the top five vehicles that are thought to cause the highest dollar damage to other vehicles. Â The list is as follows:
- Hummer H2 SUT 4dr 4WD
- Hummer H3 4dr 4WD
- Hummer H2 4dr 4WD
- Dodge Ram 2500 mega cab 4WD
- Toyota Highlander Hybrid 4dr
Thus, the car may become more expensive to insure than other cars, adding to the cost of ownership.
So, good-bye, Hummer, you big, bulk of a car. May you rust in peace even as you are sure to remain in our memories.
