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General Motors Corp., the world's largest carmaker, is introducing a new Hummer sport-utility vehicle that's smaller, cheaper and more fuel-efficient than current models to stem a 20 percent drop in sales this year.
The new H3 Hummer travels 20 miles on a gallon of gas on the highway, almost double the fuel efficiency of the H2 Hummer SUV that ranks last among 336 vehicles in U.S. ratings. The new Hummer is 186.7 inches from front to back, or 16 inches shorter than the H2.
"Hummer needs to become a bit more functional, so it's not just a poster-child for being environmentally unfriendly," said Doug Scott, a marketing analyst at NOP World, a research company in Southfield, Mich.
General Motors is seeking to sell the H3 to buyers of vehicles such as Toyota Motor Co.'s 4Runner and DaimlerChrysler AG's Jeep Grand Cherokee. Carmakers sell 1.7-million such vehicles in the U.S. annually. Hummer sales fell 20.3 percent to 20,284 through September as U.S. gasoline prices hit records.
General Motors expects to sell 27,000 Hummers this year and, with the H3, more than 50,000 next year, said Susan Docherty, the Hummer general manager. She said the H3 price may range from $30,000 to $45,000, depending on options such as heated leather seats and satellite radios. The H2 has a base price of $49,395.
General Motors is depending on new models, such as the H3, and rebates to regain market share from Asian rivals such as Toyota, Honda Motor Co. and Nissan Motor Co., which combined sold 34 percent of U.S. vehicles this year. Chief executive Rick Wagoner said he'll introduce 64 models in the next three years, including Hummers, to gain sales.
Hummer dealers in the Tampa Bay area say their sales have defied the national downturn and held steady despite the rising gas prices.
"There was a temporary dip in February when gas prices first started to rise, but once they plateaued, sales picked right up again," said Tom LaPointe, Hummer brand manager for Dew Cadillac and Hummer in Pinellas Park. "If you're buying a car in the $50,000-plus range, another $50 a month in gas isn't going to make a difference."
LaPointe and Bill Eichmann, sales manager at Reeves Motorcars in Tampa, said if Hummer sales have tapered off nationwide it's just part of the natural sales cycle. And they're eager to get the new H3 models on their lots in the spring.
"There's a lot of interest in the H3, but it's from a different group of customers, just like people who buy Explorers don't buy Expeditions," Eichmann said. "It will sell like crazy."
Also adding a new edge to the brand in the spring will be the GM-mandated Hummer-homes, which will be constructed at each dealership. At Dew's lot on Gandy Boulevard, the glass and steel building will double the size of the Hummer showroom and include a demonstration course with hill climbs, side tilts and traction-control demonstrations.
"We have a building now that says Hummer on it, but it doesn't jump off the page like the Quonset hut will," said LaPointe, who compared it to Land Rover's specially designed sales centers.
"The Hummer decor will be a little more industrial and symbolic of strength. It will show what sets the Hummer apart from an everyday SUV."
- Times staff writer Kris Hundley contributed to this report, which used information from Bloomberg.