Is it my imagination or are there more Hummers on the road? Despite the fact that gasoline costs well over $3 a gallon, the Hummer is doing well.
General Motors, who makes the monster SUV, reported that in the first three months of 2006, Hummer’s global sales surged 202%; mostly due to the addition of the new H3 SUV, the smallest and most-affordable vehicle in the brand lineup. During this period, Hummer sales in the United States rose 185%.
The Detroit Free Press also reported last month:
“Sales of Cadillac outside of the United States grew 19.4% in the first quarter, supported by a 246% gain in China and 32% growth in Canada. The rollout of the new Escalade SUV and the all-new BLS luxury sedan is expected to fuel stronger Cadillac sales in the second quarter, GM said.”
There are people who imagine (and hope) that high priced gas will forever make Americans into a hybrid-loving, tree hugging land of little cars. But I think just the opposite is happening. The more expensive driving becomes, the more of a status symbol it will be to drive an enormous tank around the neighborhood.
High prices haven’t killed off Beverly Hills, perfume, yachts, cocaine and condos—and they aren’t killing off the SUV. At an MSRP starting price of $26,260 the H3 might actually be considered a bargain.
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