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General Motors could turn Hamtramck into its electric pickup, SUV hub

Electric off-roaders could revitalize the Detroit-Hamtramck factory that General Motors previously announced it will close. While official details remain shrouded in secrecy, analysts believe the plant will be re-tooled to manufacture at least three electric models due out during the early 2020s. The plant's scheduled closure was one of the grievances the United Auto Workers (UAW) union cited when it embarked on a 40-day strike in September 2019. General Motors agreed to keep it open without shedding much light on what it planned to build there. Analyst at LMC Automotive told the The Detroit News they believe an often-rumored electric SUV that will resurrect Hummer's name, image, or both will be one of the models assigned to the Hamtramck plant. Battery-powered variants of the GMC Sierra and the Cadillac Escalade will be made there, too, as will an enigmatic van. LMC Automotive's Jeff Schuster believes the van will come first; it could enter production as early as 2021. The Hummer — which might also be offered as a pickup — will follow before the end of 2022, while the Sierra and the Escalade will both arrive in 2023. We're taking this report with a grain of salt, though, because only one of the aforementioned models has been announced by General Motors. Rumors of a Hummer resurrection emerged in the summer of 2019, just a few weeks before we heard unverified reports of a battery-powered variant of the next-generation Escalade. General Motors confirmed plans to enter the burgeoning electric pickup truck segment, which Ford, Rivian, and Tesla also have their sights on, but it hasn't detailed how or when. The van is a mystery. General Motors refused to comment on the report. It previously announced it will keep Hamtramck open, and invest $3 billion to build electric vehicles there. The investment will create 2,225 jobs. Inaugurated in February 1985, the Hamtramck factory has churned out a diverse selection of models over the past 34 years, including Cadillac's Eldorado, Seville, and Allante, the Oldsmobile Toronado, the Buick Riviera, and more recently, gasoline-electric Chevrolet Volt. General Motors announced plans to close Hamtramck in 2018, but it quickly backpedaled and extended its lease on life until 2020 by keeping the Chevrolet Impala and the Cadillac CT6 around for a few additional months.

An all-electric Hummer is reportedly under consideration at GM

GM is reportedly considering a return to the Hummer brand, but not in the traditional Hummer way. No, a report from Bloomberg says that GM is mulling over the idea of building an electric Hummer. The report cites unnamed sources within GM, as the folks prefer not to be named due to the private nature of the conversations. At this point, Bloomberg characterizes the Hummer talks as preliminary discussions. GM is figuring out how it wants to organize its future electric trucks and SUVs, and Hummer is a part of those discussions. Just as anyone would expect, Hummer could be used to profit off the current demand for rugged and tough vehicles. Mark Reuss didn't commit either way to a Hummer revival when asked by Bloomberg. "I love Hummer. I don't know. We're looking at everything," Reuss said. Other GM sources said that the company sees an opportunity to compete with Jeep for off-road vehicles that have creature comforts commanding high premiums. The report states that designers have done work with Hummer concepts, experimenting with Hummer styling to implement it on GMC-branded products, too. There's also the question of whether an electric Hummer is a smart move to begin with. Folks bought up Hummers before because they're big, brawny, good off-road, and gas was cheap. Gas is relatively cheap today, but attitudes around cars that achieve 10 mpg have changed. Rivian thinks that consumers are interested in premium electric SUVs and trucks, and the hype around that company is real right now. An electric Hummer would undoubtedly go after the same space as the Rivian R1S. The number of people willing to drop over $70,000 on an electric adventure vehicle is still untested, though. Even if GM did give an electric Hummer project the green light, we're still years away. We know GM is currently in development of an electric pickup truck platform, but that doesn't mean it's anywhere close to production. We haven't seen a new Hummer since GM halted sales of the brand in 2010. The recession and high gas prices drove sales down so low that Hummer declared bankruptcy in 2009, but GM still kept the brand in its portfolio. It's hard to think of a better time than the SUV and crossover hoopla of today to introduce something like an electric Hummer, but until we hear something more substantial from GM, the vehicle is going to remain a rumor.

Luxury carmakers make way more than just cars

Whether it's as simple as Ferrari offering model cars or as opulent as Bugatti with an $84,000-belt buckle, practically every automaker does more than just sell cars to keep their brands visible. The profits from these ventures might not be enough to keep the lights on, but in such a competitive industry, any extra cash is welcome. For the automakers that get licensing just right, there is a ton of profit to be made. According to a recent story examining the practice by The New York Times, Ferrari makes around $2.6 billion from merchandising each year, and General Motors tops that at $3.5 billion. Beyond just a profit center, merchandising can also protect an automaker's name. Take Hummer for example. The GM division shut down years ago, but it has continued to produce licensed cologne on sale around the world. "Because we still have the active fragrance, we're protecting the brand if we ever decide to bring it back," Gene Reamer, a GM licensing senior manager, told the Times. The whole piece is a fascinating look into this often ignored, but quite lucrative facet of the auto business. Read it for yourself, here. Related Video: News Source: The New York TimesImage Credit: Luca Bruno / AP Photo Design/Style Earnings/Financials Marketing/Advertising Read This Ferrari GM Hummer branding