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GM Scraps the Hummer H-1

High Gas Prices the Downfall of the Mighty Beast

May 15, 2006

• Truck and SUV Sales Plunge in August • GM Aims High-Mileage Cruze At U.S. Market • GM Offers Employee Prices to Spur Slow Sales • U.S. Consumers Favor Japanese and German Automakers • Automakers Report Huge Drop in Sales • GM Cuts Prices for February • Toyota Sales for 2007 May Surpass GM • New GM Sale May Challenge Bargain Hunters • GM Hangs on as World's No. 1 Automaker • Saturn Outlook Gets High Marks from Consumer Reports • Summer Car Sales Start to Sizzle • Consumer Reports Lists Best New Car Deals • Chrysler Dumps Remaining 2006 Inventory on Used Car Market --- • More about Auto Sales ...

The head turning hulk of an SUV known as the H1 Hummer is about to see its last day on a civilian production line. GM has announced that production of the diesel-powered guzzler will end in June. The H1 is the civilian version of the military Humvee and sells for $126,000.

As well as the largest SUV rolling down an American highway, the H1 Humvee has served as a symbol in the environmental community's attack on large gas-guzzling vehicles.

The H1 gets about 10 miles per gallon with a 6.6-liter diesel V-8 engine.

GM branded the vehicle as the H1 Alpha but sales have continued to decline. From January through April 2006, Hummer sold 98 H1s, down from 104 in the year-ago period.

With its bulk and military design, the Hummer H1 is a true head-turner on the highway.

GM reports it will now turn its attention to Hummer models with wider appeal. Only 12,000 H1 Humvee have hit the road since 1992 and while they drew widespread attention, the diesel-powered behemoths also attracted widespread scorn.

The H1 Alpha was the foundation of GM's Hummer brand. Since taking over the Hummer name in 2000, GM has introduced the still-hefty H2 as well as a midsize H3 sport utility vehicle.

For the 2006 model year, the H1 was offered as a high-performance H1 Alpha that costs about $130,000 to $140,000.

The 2004 model year H1 sold at a base price of about $106,000. Last year, GM sold 374 H1s, down 16 percent from 447 in 2004.

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