Hummer and Pontiac need to survive.

Hummer has recently been put up for sale by GM. For GM which has recently come out of bankruptcy, it makes sense on cutting down the brands. It never did know what to do with 10+ brands it jad acquired worldwide in the first place.

Now out of bankruptcy and with the final sale of Saab ( again which needed to survive) GM is now next putting its attention to Hummer. While Saturn cars were nothing but rebadged Opels ( I still love the Sky),  Pontiac and Hummer are two brands which have a place and reason to exist. Pontiac's have always been known for their sporty nature even after GM's marketing genuises tried to ruin the brand image in the recent years. Same goes for Hummer. Hummer's are known worldwide for their Off-roading nature and tough build. One can but only remember the Californian Governer Arnold Schwarznegger (Did I spell that correctly? :P)  And while GM has an Off-roading and Truck making vehicle division in GMC which makes profits, Hummer is an equally strong niche products. While environmental analysts and most automobile companies would say that Hummer cant survive with only 9000 units sold last year, its an excellent case study for lost identity just like SAAB.

IF GMC, LAND  ROVER, JEEP,  Mahindra & Mahindra and FORD Trucks have a reason to live, Hummers have every reason to survive until then.

Yes, Corrections are needed. H2 and H3 need to be significantly revamped to appeal to the masses. Most SUV and truck owners hardly use their vehicles off-road and are supposed to be image builders. Hummers need better designed interiors and befitting engines (read slightly more Fuel-efficient). Also the weight needs to be cut down overall. Introducing a Soft-roader (Hummer HX concept) might go a long way in hitting better sales targets. But I do agree with two points.

1. Significant investment will be needed in the initial phase itself to undo the damage done by Liquidation motors before and Government Motors now.
2. Hummer can't survive by itself. But with a similar case to JLR (Jaguar-Land RoverA), A pontiac-Hummer combination will be a sure winner.

For about 150-200 million in cash (those of your smirking out there need to know that the smallest car companies have that kind of money)  A HummerPontiac Corp. will make utmost sense. For the beginning Pontiac G8 and Pontiac Solstice can be put for sale. The company's operations should be based on limited sales with high premium margins. I wouldn't expect the sales worldwide to touch more than 50,000 in the first year and 100,000 in the second year.  GM should be able to agree to let the company use their platforms and engines for a period of 3-5 years until the car company can build its own platforms and engines.

While Hummer has been saved from the Chinese hands for now (GM is as desperate as the 40 year old virgin) , I hope a significant car maker comes up with the money to save the brand. I am ready to bid and save the plant in South Africa if the government backs me up. :)