Slowing H1 Sales

[Aubs]

So far, there have been 98 H1's sold through April 30th. That's down about 6% from last year at this time. In April, sales were down about 30%.

If we turn the clock back a bit, here's how it looks:

2005: 374
2004: 447
2003: 730
2002: 720
2001: 768

Now, given there were significant improvements in 2005 selling year for the ALPHA, sales would have hopefully spiked a bit. It looks like yearly they've been on a steady decline.

So what does this mean about the future of the H1? There has to be a point at which production is no longer profitable. I also imagine that dealer supply is huge right now (if they still make 700 units/year), meaning if you want one, it's easy to get. I just wonder if the H1 will stick around...

Please let me know if I'm missing something. Unfortunately I can't find H1 production schedules.

[Ground hawg]

There's an article in the automotive news this week on the subject. there chif sales and marketing guy says that there looking at stopping production of the H1 and having the H2 as the flagship vehicle.

[HUMTECH]

I would tend to agree, we have not sold A new unit in at least 2 years. Also am surprised at how many people don't think they even make them anymore.

[oma]

You would also have to factor in the impact of not having the Alpha ready to go in 2005. That would cut down sales in 2004 and all of 2005. It would be interesting to see how many sales in 2005 were really just left over 2004's, because people were waiting for the release of the Alpha, and how many were actual Alpha orders being placed in 2005. Keep in mind that there is no 2005 model year for the H1.

[EXH1X5]

Originally posted by Aubs:
So far, there have been 98 H1's sold through April 30th. That's down about 6% from last year at this time. In April, sales were down about 30%. If we turn the clock back a bit, here's how it looks:

2005: 374
2004: 447
2003: 730
2002: 720
2001: 768

Now, given there were significant improvements in 2005 selling year for the ALPHA, sales would have hopefully spiked a bit. It looks like yearly they've been on a steady decline.

Generally speaking sales have been on the decline since 1997!

So what does this mean about the future of the H1? There has to be a point at which production is no longer profitable. I also imagine that dealer supply is huge right now (if they still make 700 units/year), meaning if you want one, it's easy to get. I just wonder if the H1 will stick around...

It will stick around as long as GM & AMG want it to!

Please let me know if I'm missing something. Unfortunately I can't find H1 production schedules.

What you might be missing is this: Over the past 10 years when AMG has built the MOST HUMMERs (H1) they made the LEAST profit ...AND... when they built the LEAST HUMMERs (H1) they made the MOST profit! GO FIGURE!

BTW; unless the Border Patrol (or the MinuteMen ) get serious about buying H1s by the hundreds, it's looking like AMG only plans to build about 250 per year for the next several years....but who knows for sure?

[Aubs]

Originally posted by oma:
Keep in mind that there is no 2005 model year for the H1.

Notice I used 2005 SELLING year. Of course I know there were no 2005 models produced. Thank you Captain Obvious!

The ALPHA was released about a year ago in 2005 as a 2006 model if I remeber. I know the early models were manufactured over a year ago.

[Aubs]

Originally posted by EXH1X5:
Generally speaking sales have been on the decline since 1997!

GM's online data only goes back to 2001.

It will stick around as long as GM & AMG want it to!

I suppose if they continue to roll out a profit, they will continue production. EOS would suggest that the number has to evenutally get too low to be profitable. I don't think the fleet sales include all of the interior refinments, and they certainly don't pull those out of another product.

What you might be missing is this: Over the past 10 years when AMG has built the MOST HUMMERs (H1) they made the LEAST profit ...AND... when they built the LEAST HUMMERs (H1) they made the MOST profit! GO FIGURE!

BTW; unless the Border Patrol (or the MinuteMen ) get serious about buying H1s by the hundreds, it's looking like AMG only plans to build about 250 per year for the next several years....but who knows for sure?

That would seem counterintuitive. The answer may be that they charge more for the H1's now that they are producing smaller numbers, or they've reduced production costs elsewhere. There have been to many expensive refinements since the wonder years of 1,000 unit production. It's not just gray/tan plastic and cloth seats anymore. I draw the conclusion that I guess others are making, that the H1 is probably on the way out.

OR it will be redesigned by GM, given similar abilities, and made 1000X more road-friendly and practical for civillian use so people might buy them in slightly larger numbers. However, for GM to put that much <STRIKE>time</STRIKE> money into it, they have to be turning out quite a few, otherwise they won't recoup anything...

[PARAGON]

Originally posted by EXH1X5:
BTW; unless the Border Patrol (or the MinuteMen ) get serious about buying H1s by the hundreds, it's looking like AMG only plans to build about 250 per year for the next several years....but who knows for sure?

You are confusing things. AMG builds and sells the HMMWV. AMG builds but GM sells the H1. AMG has secured contracts to replace all of the HMMWVs with the new HMMWV A2 variants (or M115s). Which is a slightly redesigned HMMWV and they have just started building and shipping them.

All the news is about is GM might not market the H1 as a civilian vehicle anymore as the flagship vehicle for Hummer. Doesn't mean anything about whether or not AM General will keep building HMMWVs or whether they will start selling the same vehicle as a civilian Humvee since they still own that name.

BTW, the HMMWV is reaching the end of it's useful life in our military and new vehicles are being looked for. A very strong contender that has recently received funding for testing is based off the G-wagon.

[EXH1X5]

Originally posted by Aubs:
GM's online data only goes back to 2001.

Well then...you'll just have to take my word about those other years

That would seem counterintuitive.

Yeah, and that too!

[Aubs]

http://www.elcovaforums.com/forums/s...ad.php?t=16712

Well, it's time to say goodbye.