DETROIT, Michigan - In a move to boost international sales of its Hummer sport utility vehicle, General Motors said Wednesday it will build the forthcoming H3 SUV in South Africa starting in late 2006.
"The assembly of Hummer H3 in South Africa is another important step in becoming a truly global premium brand," Hummer general manager Susan Docherty said in a conference call.
Hummer plans to utilize its "real iconic status"" as a selling point abroad in order to compete with established nameplates such as Jeep and Land Rover, Docherty said.
Eventually, Hummer targets selling 80,000 units annually on a global basis, up from 30,000 in 2004, Docherty said.
The Struandale, South Africa plant will export as many as 10,000 vehicles annually to markets outside North America, including Europe, Africa, Asia and the Middle East.
Hummer will initially export left-hand-drive H3s in 2006, and add right-hand-drive versions to the mix in 2007. GM will also sell the SUVs in South Africa.
In 2002, Hummer added the consumer-oriented H2 to a vehicle lineup that previously only offered the military-use H1. The H2 bowed with a price tag just below 50,000 dollars and met both sensational demand from US consumers and complaints over poor fuel economy from environmentalists.
Sales in the US have fallen sharply since the massive luxury vehicle first came to market. After dropping 26 percent to 25,558 in 2004 compared with 34,529 in 2003, Hummer sales declined 7.1 percent in the first quarter of 2005 compared with the same period in 2004.
Docherty insisted Hummer does not have some of the fuel economy-related "baggage" in most markets that it suffers from in North America. Nevertheless, Hummer plans to offer a diesel-powered H3 in within a few years in international markets, specifically in Europe where diesel is fast becoming the fuel of choice.
Germany is expected to be the top Hummer market, Docherty added.
04/06/2005 16:36 GMT