AM General have had to make plans to lay off some of their workforce, even though they have the contract to build the new Hummer H2.
Hummer H2 spells trouble for workers.
A M General who have the contract to build the new Hummer H2 for General Motors have announced that the company would be laying off between 160 to 500 of their employees early next year (2007).
The Hummer has seen its sales slow to the point that they may have reached their natural limit and appear to have levelled off, thereby creating the need to release some of the work force, who are based in the plant at Mishawaka, Indiana.
The Hummer has seen an extraordinary growth in sales and in its image, though the changes in feelings towards SUV’s have hurt the growth in more recent times, which is why they find themselves in this unenviable position, which is bad for both the company and the employees alike.
A M General also make the Humvee, the military version of the Hummer and therefore the market for that piece of equipment is stable if not growing, yet the Hummer H2 when it replaced the Hummer H1 was cheaper to buy than the H1, and so therefore would be likely to sell more, but the fuel and anti SUV feelings have damaged the market possibly forever.