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Hummer's Uncertain Future: Mishawaka Awaits Word on Plant's Fate

Hummer's Uncertain Future: Mishawaka Awaits Word on Plant's Fate | MotorVero

Hummer's Crossroads: Mishawaka Workers Face an Uncertain Future

Hummer plant closure

In the quiet Indiana town of Mishawaka, home to AM General's Hummer production plant since 2001, workers and residents alike await word on the fate of an American automotive icon. With Hummer sales plummeting and General Motors considering selling the brand, this manufacturing community faces an economic reckoning that reflects broader shifts in the auto industry.

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Hummer's Rise and Fall

1990s

Arnold Schwarzenegger helps popularize civilian Humvees, convincing AM General to produce the street-legal H1

1999

GM acquires the Hummer brand from AM General

2003

H2 model launches, becoming a symbol of pre-recession excess

2005

H3 introduced as gas prices begin rising; H2 sales peak at 23,213 units

2008

H2 production cut by 33%; GM announces potential brand sale

H2 Sales Decline

  • 2005: 23,213 units
  • 2006: 17,107 units (-26.3%)
  • 2007: 12,431 units (-27.3%)
  • 2008 (through June): 3,753 units (-53.6% YOY)
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Market Forces

  • Gas prices at record highs
  • Environmental concerns growing
  • Economic recession looming
  • Shift to fuel-efficient vehicles

Mishawaka Impact

  • Production cuts implemented
  • 500+ jobs at risk
  • Local businesses concerned
  • AM General exploring alternatives
"It's frightening. That we could have a number of employees out looking for jobs — it would be a huge deal."
— Phil Damico, South Bend Chamber of Commerce

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Community Impact

The potential downsizing or closure of Hummer production would ripple through Mishawaka's economy:

Economic Consequences

  • Direct jobs: Hundreds of manufacturing positions at risk
  • Secondary impact: Local businesses like City-Wide Liquors rely on plant workers
  • Tax base: Significant portion of local revenue threatened
  • Community identity: Plant has been cornerstone since 2001
"The overall community could really be affected. That's a lot of money being pulled out of the community."
— Ed McNamara, City-Wide Liquors owner
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Potential Paths Forward

While the future looks uncertain, several possibilities remain for the Mishawaka plant:

  • Military production: AM General could shift workers to Humvee production
  • New contracts: Taxi upgrades and other commercial work in discussion
  • Brand sale: New owner might maintain some production
  • Complete closure: Worst-case scenario for local workers
"There really aren't too many other options in Mishawaka. I don't know of anyone who's ever walked in and quit their job here. There's nowhere else to go."
— Carmel Hollars, 12-year plant employee
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Broader Industry Context

The Hummer situation reflects larger automotive trends in 2008:

  • Domestic automakers struggling with shifting consumer preferences
  • Truck and SUV sales collapsing amid gas price crisis
  • GM facing financial troubles that would lead to bankruptcy
  • Environmental concerns changing vehicle demand
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2023 Update: The Aftermath

In hindsight, the concerns were justified:

  • GM failed to sell Hummer and discontinued the brand in 2010
  • The Mishawaka plant transitioned to military production
  • Hummer later revived as an all-electric GMC sub-brand
  • The 2008 crisis marked the end of an era for gas-guzzling SUVs

For Mishawaka residents who lived through the uncertainty, the Hummer story remains a cautionary tale about the auto industry's volatility and the very real human impact of corporate decisions.

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Klash

Last Updated On Oct, 02-2025

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