General Motors’ Hummer brand has had a turbulent year to say the least. Due to rising fuel prices and the overall green movement, the iconic off-road brand has seen a 47 percent decline in sales, prompting GM to put the marque up for sale. But it looks as though that GM might have a tougher sale than first thought as one of the brand’s largest dealerships has decided to close its doors.
Dan Towbin Hummer of Las Vegas – one of the biggest Hummer stores in the country — has announced that it will be closing its franchise, according to the Wall Street Journal. While losing one of its biggest dealers is definitely a blow to Hummer and GM, what it says about the state of the brand could be even more detrimental. Sin City is known for being over-the-top and the home to all things luxury, so if Hummer can’t make it in Las Vegas, does it have a shot anywhere else in the U.S.?
Unfortunately for Hummer, Towbin is the eighth dealer to close its doors this year, accounting for 5 percent of the brand’s dealer network. Although this might not seem like a big deal since sales are down so much this year, it actually hurts GM’s chances of selling the brand. One of Hummer’s biggest selling points was its dealer network, which would have given foreign automakers easy access to the U.S. market.
Perhaps a perfect snapshot of the times, Towbin will be closing its Hummer dealership only to open Las Vegas’ only Smart store.
