Sunday, August 1, 2010

Hummer code faces closure after sale to Chinese association collapses

The Hummer was once so firmly the vehicle of choice for a generation of macho Hollywood stars that Arnold Schwarzenegger owned eight.

But production of the giant American 4X4 has been terminated, a victim of the move towards green, fuel-efficient cars.

It reached the end of the road after sale of the brand by parent company General Motors to a Chinese concern collapsed.

Enlarge beckham hummer

David Beckham leaves for a training session in his Hummer during the time he played for Manchester United. The iconic SUV faces being shut down after a deal to sell it to a Chinese company collapsed

Kerry katona

Former Atomic Kitten singer Kerry Katona, now a mother of four, is also an owner of a 3.5-ton Hummer

The demise of the Hummer, sales of which peaked at 71,524 in 2006,may signal the beginning of the end of America"s love affair with thegas-guzzler.

Celebrities including Paris Hilton, Mike Tyson, Scottish big screenstar Adrien Brody of King Kong and The Pianist fame, Hollywood directorof Titanic and Avatar James Cameron, and rapper 50 Cent have all drivenone.

David and Victoria Beckham had a full-size bling version for the road and a Mini Hummer for their son Brooklyn.

Butin the fickle world of celebrity, as the green movement gained pace,its reputation went from "cool" to "can"t be seen in one".

And asMr Schwarzenegger moved from screen "Terminator" to the political"Governator" of California, even the actor-turned politician, who onceowned eight Hummers and converted some to run on pollution-freehydrogen, parted company with the 3.5 ton leviathans.

He wasn"t the only one. In December last year only 325 Hummers were sold.

The vehicle sparked controversy as a symbol of excess and high fuel consumption of under ten miles to the gallon.

Enlarge paris hilton

Plenty of room for her pooch: Paris Hilton shows off her Hummer H2

Now, unless a last-minute buyer steps forward, the manufacturingfor the iconic sport utility vehicle faces being shut down - a victimof the move towards "green", fuel-efficient and low emissions cars.

SichuanTengzhong Heavy Industrial Machines Co said it had failed to getclearance from regulators in Beijing - unconvinced that they"d get thefuel consumption figures down to a reasonable level - within theproposed timeframe for the sale and pulled out of the deal said to havebeen worth about 98million.

The giant Hummer is derived from the U.S. military"s High MobilityMulti-Purpose Wheeled Vehicle - dubbed the "HumVee" - of the 1980swhich came to universal prominence after its role in the first Gulf Warto liberate Kuwait from Saddam Hussein"s Iraq in 1991.

Sales have dwindled as the cost of petrol in the U.S. and abroad has soared.

Arnold Schawrzenegger

Thumbs up: California governor Arnold Schwarzenegger had a fleet of eight Hummers, but has since got rid of the 3.5-ton monsters

Mike Tyson

Heavyweight: Former boxing world champion Mike Tyson was also a fan of the gas-guzzling Hummer

HUMMER HISTORY

The original Hummer design was based on the military High Mobility Multipurpose Wheeled Vehicle, or HumVee.

hummer

The first civilian Hummer was built in 1992 following its much-publicised use during the Gulf War.

At its peak, the SUV was built in several countries worldwide including Russia and South Africa.

Onemodel of the Hummer, the H2, has a fuel economy of just 14 miles pergallon and was so heavy it was technically illegal for use on somestreets.

John Smith, vice president of corporate planning and alliances atGM, said: "We are disappointed that the deal with Tengzhong could notbe completed.

"GM will now work closely with Hummer employees,dealers and suppliers to wind down the business in an orderly andresponsible manner."

GM spokesman Nick Richards added: "In theearly phases of the wind down, we"ll entertain offers and determinedtheir viability, but that will have to happen in pretty short order."

Thecompany did not disclose when production of the Hummer, which employs3,000 people in the U.S, will stop. It has said it will honour existingwarranties.

Tengzhongsaid the company had "worked earnestly to achieve an acquisition thatit believed to be a tremendous opportunity to acquire a global brand atan attractive price."

Hummer sales peaked at 71,524 in 2006, butthey collapsed after petrol prices in the US - used to extremely cheapfuel - soared above $4 a gallon in summer 2008.

In December 2009, only 325 Hummers were sold, down 85 per cent from the previous year.

Thesports utility vehicle sells in the US for between 28,000 to 41,200 -though personalised models can cost much more - with even the most fuelefficient model averaging just 16 miles per gallon.

Plant workerAlex Santana, a 17-year veteran at the Shreveport factory, said the endof Hummer "is going to hurt a lot of people. There"s a lot of jobsgoing down the drain," he said.

LeBron James

Accessory: Hummers were a popular accessory with multi-millionaire sportsmen, including NBA star LeBron James (pictured)

hummer

Limo with a difference: A stretch Hummer

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