If Hummer Shuts Down Where Will the Buyers Go?

March 09, 2010

General Motors' efforts to sell Hummer to China's Sichuan Tengzhong Heavy Industrial Machinery stalled last week and the brand may be headed to extinction. While GM sorts out the last "Hail Mary" bids on the behemoth brand, cross-shopping activity on AutoTrader.com shows Chevrolet may be able capture the largest share of new Hummer buyers. Many other brands may also have an opportunity to capture new Hummer buyers as statistics show there is not one cross-shopped brand that those researching new Hummer purchases look at significantly more frequently than any other.

According to AutoTrader.com cross-shopping site data, Chevy is the number one new-car brand that site visitors shopping for new Hummer vehicles also looked at, attracting 12.3% of Hummer shoppers. Chevy was the only brand with a double-digit cross shopping percentage.

The top 10 new car brands cross-shopped by new Hummer shoppers on AutoTrader.com were:

1. Chevy - 12.3%
2. Ford - 8.8%
3. Dodge - 6.7%
4. Toyota - 6.6%
5. GMC - 6.5%
6. Cadillac - 6.3%
7. Jeep - 5.7%
8. Nissan - 5.5%
9. Mercedes-Benz - 5.2%
10. BMW - 4.9%

According to AutoTrader.com, the fact that there's no one primary cross-shopped brand that stands out from the others means several things:

First, it means that Hummer buyers are very loyal and, while representing a small slice of the overall car market, Hummer may be a valuable brand for any-last minute buyers who may still step in to save it.

Second, it also means that if the brand does end up being closed, many other brands have the opportunity to snag those new-vehicle buyers.

"From the list, we see that new-car shoppers who consider Hummer are also considering many brands that offer luxury SUVs and trucks that might work as a substitute if the pipeline of new Hummer vehicles is shut off," said AutoTrader.com President and CEO Chip Perry. "Brands seeking to capture those Hummer customers have a great opportunity to use behaviorally targeted on-line marketing and other marketing channels to expose their brands to these new-vehicle buyers and influence their purchase intent."

For Hummer loyalists looking for potential deals on new Hummers, AutoTrader.com had nearly 300 new Hummer vehicles listed for sale at the beginning of the month, while the site also shows 5,355 used Hummers available nationwide. AutoTrader.com listings include photos, detailed descriptions, and contact information to help buyers find the perfect new or used vehicle for them.

By Brandy Schaffels
AskPatty.com Editor