Whatever side of the global warming debate one finds themselves on, nearly everyone can agree that driving a vehicle that gets about 14 MPG when gas is $3 per gallon is not the most efficient way to get around town. That is likely why sales of Hummer have dropped precipitously over the past few years. It is also one of the reasons behind GM's decision to send the brand to the scrap heap, joining other divisions such as Pontiac and Saturn.
Hummer has been on life support for a while now, but the last nail in the coffin came as Chinese regulators rejected a sale of the group to Tengzhong, a large manufacturer. Though Chinese officials are keen to buy foreign assets across many industries, this has not reduced their inclination toward being strategic purchasers, and ultimately the gas guzzlers didn't fit into the government's long-term plans.
This overall situation is representative of many of today's hot topics. First, Detroit's short-sightedness in the '90s and early 2000s was crippling and is one of many reasons why the government needed to prop up the auto industry last year. Secondly, and particularly in tough economic times, even Americans have become more price sensitive when it comes to fuel, a fact which will drive production going forward. Thirdly, and perhaps most influential in the long-term, China is much further along than the US in adopting a green approach to development.
Interestingly, this is not necessarily due to environmental concerns, but a very economic recognition that resources are limited, and therefore that development cannot rest on fossil fuels alone. Efficiency should be something that American manufacturers can embrace, but the transition has been slow to date. Despite this growing gap, however, America can take solace in at least one thing; we still have them in the Olympics...
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