Hummers and Hindu Cows? (GM, F, TTM)

If we told you General Motors (NYSE: GM) was having troubles and needs to trim bad brands (and more workers), you’d accuse us of working for for the government’s Department of Redundancy Department.  But this morning’s reports out of Reuters that Hummer may be sold to Mahindra & Mahindra in India and/or auto makers in Russia and China brings up more thoughts and questions than should even be noted.  Sure, the world is flat.  But now it is starting to look upside down.

Ford (NYSE: F) has already unloaded Rover and Jaguar to Tata Motors(NYSE: TTM) in India and Chrysler was part of Germany’s Daimler for longer than Daimler wishes, so this really can’t be too big of a shock if it reallypans out.  Despite what many people would think on the surface, this isjust the commercial line of Hummer.  Closely held AM General in SouthBend, Indiana makes the military Humvee’s so there is no apparent nationalsecurity issue where our soldiers are driving future foreign tin cans.

Hummers and the smaller H3’s have suffered as gas has risen and risen,and even though pump prices have retreated there seems to be changeshappening in consumer habits.  Many would merely allude to it being the"Ultimate Vanity SUV" with a bumper sticker saying "Mine’s bigger thanyours and gas prices be damned!" in the back bumper. 

But now consumers are slowly starting to make their consumer behaviorchoices differently and anyone selling a used SUV right now is findingout just how fun it is.  Even in Houston where oil runs through its residents’veins you are starting to see the Smart cars driving inside The Loop.

Maybe Hindu cows won’t be the only odd thing foreigners see meandering down Indian streets.  The closest I have ever been to India is about 20 miles from the border in Nepal.  But I will go soon, and now I might have one more surprise to see.

Jon C. Ogg
July 31, 2008