Has Hummer Lost Its Groove?

General Motors may have reason to be concerned with sales of the $50,000 Hummer H2, now that sales of the massive SUV have dropped for the sixth month in a row when compared to the prior year's results. In February, Reuters reports, sales of the H2 fell by 21 percent, even though GM offered 48-month leases without a down payment or deposit. The vehicle, which made its debut in 2002 and is based loosely on GM's full-size truck architecture, currently runs at a 52-day supply through the GM pipeline, a little better than the average vehicle. Hummer spokesman Pete Ternes told the news agency that sales of the Hummer could slip below 30,000 vehicles a year and GM still would make money on the project. GM owns the Hummer brand and builds the H2 in Mishawaka, Ind. A new $35,000 Hummer H3 is due in 2005, based on the small-truck architecture that has spawned the Chevy Colorado and GMC Canyon.