GM trims Hummer H2 price by sharing parts

[MAC]

OLD NEWS, but has a few interesting data. Such as GM had the old H2-like design (Chunk) before they went to get the Hummer name on it.

June 19, 2002 GM trims Hummer H2 price by sharing parts By RICK KRANZ Automotive News

Michael DiGiovanni's challenge for the Hummer H2 was to keep the original Hummer H1's rugged looks and capability - but make the second Hummer cheaper and more comfortable.

So the first stop of Hummer's general manager was General Motors' parts bin. Forty percent of the parts were taken from GM's truck line. GM parts account for about 75 percent of the value of the truck, one engineer estimated.

For instance, the front suspension is borrowed from GM's three-quarter-ton full-sized trucks. The five-link rear suspension design is shared with the Chevrolet Tahoe.

The result: The H2 has a sticker price of $48,800, which is far from inexpensive, but well below the H1's base sticker of $109,834. Both prices include destination charges.

As for off-road ability, the H2 can cross a 20-inch deep stream, climb a 60-degree grade and crawl over rocks as tall as 16 inches.

Another goal was comfort. "H1 owners said they wanted a vehicle more street-friendly for use as a daily driver," said Kenneth Lindensmith, Hummer program manager.

The H2's ride, comfort and interior noise levels are more in line with a Tahoe.

One analyst sees risks in producing a tamer Hummer. The H1 became an icon because of its ruggedness.

"Part of the aspirational aspect of the H1 is its sheer, mammoth size," said Todd Turner, president of Car Concepts, a consulting firm in Thousand Oaks, Calif. "But will that translate into a far more refined type of vehicle that is more mainstream?

"You lose a lot of what that appeal is about by scaling it down and making it more compatible with highways and parking lots."

GM was keen to retain the military soul of the H1 because research showed that buyers responded to the Hummer's Army roots.

In 1998, DiGiovanni was doing market research on a military-looking concept truck that GM had developed before it acquired the right to market Hummers. At the time, he was head of GM's research and forecasting group in North America.

GM tried various badges on the concept, called the Chunk. When DiGiovanni badged it as a Hummer, buyers' response skyrocketed.

In January 1999, DiGiovanni and his group presented the Hummer idea to GM's North American Strategy Board.

The board authorized contact with AM General Corp., in Mishawaka, Ind., owner of the Hummer name. An agreement was signed. GM purchased the rights to the Hummer name and AM General agreed to assemble the H2. The assembly contract runs through 2009.

Edag Engineering and Design AG of Fulda, Germany, helped GM develop the H2 in a speedy 16 months from when the last exterior sheet metal panel was approved to when the first saleable unit was assembled.

To give the H2 more rock-crawling ability, engineers created shorter overhangs by chopping 8 inches off the front of the GM frame and several inches off the rear.

Power is provided by GM's 316-hp 6.0-liter V-8, which produces 360 pounds-feet of torque. The automatic transmission also is GM's.

Other GM parts are the:

Floor pan, from the Tahoe, which was patched in the middle to create the H2's 6.8-inch longer wheelbase.

Instrument panel structure, from the full-sized trucks.

Steering column, from the mid-sized Chevrolet TrailBlazer.

Frame, which was created by splicing together portions of GM frames.

The H2 is aimed at buyers in their 40s who earn more than $150,000 annually. Hummer is targeting buyers of luxury sedans and the Lexus LX 470, Mercedes-Benz M class, Lincoln Navigator and Cadillac Escalade.

The AM General plant can produce 40,000 vehicles annually. The sales goal is 17,000 H2s this year and up to 30,000 next year.

[MAC]

OLD NEWS, but has a few interesting data. Such as GM had the old H2-like design (Chunk) before they went to get the Hummer name on it.

June 19, 2002 GM trims Hummer H2 price by sharing parts By RICK KRANZ Automotive News

Michael DiGiovanni's challenge for the Hummer H2 was to keep the original Hummer H1's rugged looks and capability - but make the second Hummer cheaper and more comfortable.

So the first stop of Hummer's general manager was General Motors' parts bin. Forty percent of the parts were taken from GM's truck line. GM parts account for about 75 percent of the value of the truck, one engineer estimated.

For instance, the front suspension is borrowed from GM's three-quarter-ton full-sized trucks. The five-link rear suspension design is shared with the Chevrolet Tahoe.

The result: The H2 has a sticker price of $48,800, which is far from inexpensive, but well below the H1's base sticker of $109,834. Both prices include destination charges.

As for off-road ability, the H2 can cross a 20-inch deep stream, climb a 60-degree grade and crawl over rocks as tall as 16 inches.

Another goal was comfort. "H1 owners said they wanted a vehicle more street-friendly for use as a daily driver," said Kenneth Lindensmith, Hummer program manager.

The H2's ride, comfort and interior noise levels are more in line with a Tahoe.

One analyst sees risks in producing a tamer Hummer. The H1 became an icon because of its ruggedness.

"Part of the aspirational aspect of the H1 is its sheer, mammoth size," said Todd Turner, president of Car Concepts, a consulting firm in Thousand Oaks, Calif. "But will that translate into a far more refined type of vehicle that is more mainstream?

"You lose a lot of what that appeal is about by scaling it down and making it more compatible with highways and parking lots."

GM was keen to retain the military soul of the H1 because research showed that buyers responded to the Hummer's Army roots.

In 1998, DiGiovanni was doing market research on a military-looking concept truck that GM had developed before it acquired the right to market Hummers. At the time, he was head of GM's research and forecasting group in North America.

GM tried various badges on the concept, called the Chunk. When DiGiovanni badged it as a Hummer, buyers' response skyrocketed.

In January 1999, DiGiovanni and his group presented the Hummer idea to GM's North American Strategy Board.

The board authorized contact with AM General Corp., in Mishawaka, Ind., owner of the Hummer name. An agreement was signed. GM purchased the rights to the Hummer name and AM General agreed to assemble the H2. The assembly contract runs through 2009.

Edag Engineering and Design AG of Fulda, Germany, helped GM develop the H2 in a speedy 16 months from when the last exterior sheet metal panel was approved to when the first saleable unit was assembled.

To give the H2 more rock-crawling ability, engineers created shorter overhangs by chopping 8 inches off the front of the GM frame and several inches off the rear.

Power is provided by GM's 316-hp 6.0-liter V-8, which produces 360 pounds-feet of torque. The automatic transmission also is GM's.

Other GM parts are the:

Floor pan, from the Tahoe, which was patched in the middle to create the H2's 6.8-inch longer wheelbase.

Instrument panel structure, from the full-sized trucks.

Steering column, from the mid-sized Chevrolet TrailBlazer.

Frame, which was created by splicing together portions of GM frames.

The H2 is aimed at buyers in their 40s who earn more than $150,000 annually. Hummer is targeting buyers of luxury sedans and the Lexus LX 470, Mercedes-Benz M class, Lincoln Navigator and Cadillac Escalade.

The AM General plant can produce 40,000 vehicles annually. The sales goal is 17,000 H2s this year and up to 30,000 next year.