Q+A: More Fuel-Efficient H3 Aims To Pump Hummer

Hummer sales are no longer humming along. Sales fell 16.8% to 29,345 units in 2004 and another 7.1% for January-March, per Ward's Auto InfoBank. Though it's tempting to blame high gas prices, Rebecca Lindland, a consultant with Global Insight, Lexington, Mass., said people who can afford premium trucks like H2, aren't all that worried about gas prices. So is the thrill gone? In the face of waning sales, the General Motors brand is expanding its lineup to include a high-performance sub-brand Alpha, currently only available on the H1 vehicle, and a third and significantly smaller SUV, the H3, based on GM's mid-sized truck platform. The $29,500 H3 is rolling into showrooms now, backed by a campaign from Modernista!, Boston, that launched April 22 with sponsorship of the NFL draft pre-party. Susan Docherty, gm for the brand, discussed the marketing challenges for Hummer and H3 with Brandweek reporter Karl Greenberg.

Brandweek: Who is going to buy H3?

Susan Docherty: It's ideal for consumers who wanted a Hummer, but either because of the size of the vehicles or their budget, hesitated. The H3 is a great next logical move for us because it makes the brand more accessible for those who really want to get into the brand. Predominant competitors will be Jeep Grand Cherokee, Nissan Pathfinder and Toyota 4Runner.



BW: Will H3 change Hummer's buyer demographic?

SD: On H2 it's been 70% male, 30% female. With H3, we are looking 60% male, 40% female. When you look at those numbers, the conclusion you want to draw is it's still very male dominated, but at the vehicle's size and price point we will be able to garner more females.



BW: The Alpha brand is a niche offering, especially as an H1 vehicle. Are you going to do advertising for Alpha?

SD: One of the things Alpha does is keep our brand very aspirational. So, yes, we will run outdoor and print advertising [breaking now] in magazines like Food and Wine, Cigar Aficionado, Wine Spectator and Robb Report, aimed to appeal to people with household incomes in excess of $250,000 a year. Hummer H1 buyers are very loyal and the best way to share Alpha with people in that target will be through experiential events and direct mail. For instance, if a Hummer dealer sold 50 H1s in the past, the first place to go in terms of talking to people about this H1 Alpha is the customer base. So we put together direct-mail pieces that the dealers can tailor for their customers—this vehicle is in excess of $120,000. It needs to be marketed on a very intimate basis.



BW: Hummer's dealers have been building standalone themed showrooms. What's the current status of Hummer dealership development?