According to an announcement on Friday, Detroit auto manufacturer, General Motors Co is all set to relaunch its Hummer brand. The company is planning on manufacturing a new line of fully electric SUVs and pickup trucks under the brand name. The announcement also highlighted that Hummer will be relaunched via NBA star LeBron James featuring Super Bowl ad.
As per the sources, the company wishes to use the GMC nameplate on its new line of vehicles. The plan was originally announced in October when the company hinted at using its Detroit plant to manufacture electric pickup trucks by the end of 2021. The prospect of using the Hummer brand name for its new trucks was also accentuated in October’s announcement.
GM Will Make A $3 Billion Investment In Its Detroit-Hamtramck Plant
The recent announcement was first publicized by the Wall Street Journal. The company itself, however, is yet to comment.
The newly introduced program aimed at electric pickup trucks and sports utility vehicles is imperative to the company’s plan of making a rather sizeable $3 billion investment in its Detroit-Hamtramck plant. The plant will be fully dedicated to manufacture electric vans and trucks. As part of a broader deal with the United Auto Workers union in the previous year, GM will also be making a $7.7 billion investment in the upcoming four years in multiple of its plants in the United States.
The investment will push the Detroit car manufacturer into an electric vehicles niche that is yet to be thoroughly explored by the industry. Consequently, therefore, GM will have a greater chance of making remarkable profits in this niche. GM’s electric pickups are expected to go into production by the end of 2021 while the electric SUVs will wait till 2023 before manufacturing begins.
GM’s Revival Of Hummer To Meet With Fierce Competition
All in all, the revival of the Hummer brand by General Motors is expected to see a massive competition in the market with the leader of the EV market, Tesla, having recently entered the niche of pickup trucks with its Cyberpunk while another Amazon backed startup, Rivian, promising to begin producing a 100,000 delivery vans (fully electric) by the end of 2021.
GM’s plans of reviving the Hummer brand may as well help boost it stock that remained under pressure in 2019. The stock is currently exchanging hands at $34.65 that marks almost 20% lower than 2019’s high of $41 per share.