| 02 Mar 2010 |
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Saudi Hummer fans unperturbed by production stoppage
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JEDDAH: General Motors (GM)General Motors (GM)
announced last week that it will stop making Hummers following the collapse of a deal to sell the business to Chinese manufacturer Sichuan Tengzhong Heavy Industrial Machinery Company.Despite the Kingdom being a major destination for Hummers, the news does not seem to have upset Saudi users and local car dealers.
John Smith, GM's vice president of corporate planning and alliances, said the group had considered a number of possibilities and was disappointed that the deal could not be completed. GM said it would continue to honor Hummer warranties and provide service and parts to existing owners.
The majority of Hummer owners and dealers in the Kingdom do not seem perturbed by the news. Some, however, expect the price of spare parts to go up.
Fawaz Abdullah Kraidees, trucks and SUV accessories manager at Al-Jazirah Vehicle Agency in Riyadh, said the halt in manufacturing will affect Saudi Hummer lovers, adding that the issue is not as bad as some may think.
"GM is obliged to honor the warranty of every Hummer sold and under the global automotive legislations they have to service customers' cars as part of current warranty regulations," he said.
Kraidees said parts should still be available for the first 12-18 months at the least.
"As soon as dealerships run out of parts, there will be other sources. There are Korean, Mexican and Chinese companies who do Hummer parts and accessories and they will continue to supply Hummer owners with parts but at a higher margin," he said, adding that the price of spare parts is expected to increase.
However, Kraidees believes people who have little loyalty to the car manufacturer will buy other vehicles such as the Jeep Wrangler, the Toyota FJ Cruiser, the Ford Explorer and the Nissan X Terra.
"On the other hand, people like me who get attached to brands, our love for the Hummer will continue and our vehicles will finally end up as an antique in the garage," he added.
"I heard about the deal GM was hoping to close with the Chinese company. It unfortunately collapsed and they've started liquidation. Only 2,500 units were built for 2010 and the factory will shut down after that," he said.
Abdul Rahman believes the price of used Hummers will now increase.
"To be honest the news hasn't bothered me and I decided to buy the car even though I heard about the unsuccessful deal. Humvees have always been a favorite among Saudis and despite them being gas-guzzlers, we still love them and want them on our streets," he said.
Abdul Rahman said many car companies stopped producing several models but they are still sold for huge prices and considered precious.
"A couple of years from now, I might sell it but I am not actually worried about the price. I will look for other alternatives like a Jeep or a Cadillac Escalade," he said.
Moutasim Jamjoum, a 28-year-old marketing manager at a private company, owns a 2007 H2. He said Saudi Arabia has the highest number of Hummer sales in the world.
"I think everything will be fine until spare parts run out. The maintenance will definitely remain the same because that's part of the company's warranty," said Jamjoum.
"I am not considering selling my car. If anything happened to me in terms of spare parts or maintenance then I would assign my lawyer to deal with the company. It would then probably be like a piece of junk thrown in my backyard for my young daughter to play with," he said.
Hussein Ahmed, a 24-year-old business student who owns a Hummer H2, said he was very disappointed with the news, as he is a great Hummer fan.
"I was waiting for the next model in the market because mine is a 2006 model. I know this is the final decision but I really hope GM will reconsider producing Hummers, even if it is 10 years from now," he said.
Mujahid Abdul Atheem Ali, a Hummer dealer in Jeddah, said that despite the decision, demand for Hummers in the Kingdom will not go away.
"The Hummer is stable in the car market. A few days ago I sold a 2004 H2 model while it was still in customs. It sold for the price I wanted," he said.
Mujahid said the Hummer is one of those cars bought by all strata of society and people of all age groups.
"Old and new Hummer models sell immediately. Spare parts are however expensive," he added.
Arab News tried to contact Al-Jomaih Automotive Company, Hummer's agent in Saudi Arabia, several times but no one was available for comment.
By LAURA BASHRAHEEL
© Arab News 2010
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