GM'S Sale of Hummer Underway, WSJ

[lamric]

Originally Posted by LAPTOP GAMER

Am I missing something here? Why can't they just scale back production to meet demand, and not get rid of the Hummer brand? This whole move is stupid and short sighted and one day the demand for off road vehicles will be back, then they will be kicking them selves for not keeping the Hummer brand which is a superior off road vehicle and value for the money.

Economy of scale. Hummer has to sell x amount of vehicles at MSRP to turn a profit on the brand. If they sell fewer vehicles they either have to raise the price, lay off workers or shift production to reduce costs.