GM comments set Hummer dealers on edge

But the broader problem for Hummer and other large vehicles has been the fast rise in gas prices. Sales of large pickups fell 21 percent through May, while sales of large SUVs were down 39 percent. The H3 gets 15 miles to the gallon, according to government estimates. The government doesn't estimate fuel economy for the H2 because it's so large, but dealers estimate it gets around 12 miles per gallon. With gas at $4 a gallon, it costs $128 to fill up the H2's 32-gallon tank.

Ed Williamson, owner of Williamson Hummer in Miami, says GM should respond not by selling the brand but by giving it more options with better fuel efficiency, including crossovers, diesels and hybrids.

"I think that there is a definite market for a Hummer family of vehicles," he said. "I think that there is a way to make a Hummer green, and I sincerely hope that General Motors decides to invest in that."

Towbin said GM will get a good start this fall, when it makes all its vehicles capable of running on E85 ethanol. Hummers that can run on biodiesel will be up next, in 2009, he said.

Towbin and others agree there's too much equity in the Hummer brand name to cancel it entirely.

"With Hummer, everybody has some opinion, and that is a wonderful thing as far as value of the brand. In today's business world, that's priceless," he said.

There's also a lot of money invested by the brand's 170 dealers, many of whom built mammoth, Quonset-hut styled showrooms in the last few years according to GM's specifications. Williamson said he spent $2 million on his 2,500-square-foot Hummer showroom. Johnson said some dealers spent up to $10 million building showrooms with test tracks and other elaborate features.

"There's too much money invested here for GM to do away with it," Johnson said. "They'd be looking at a huge class action lawsuit."

Other issues could make GM pause. While Hummer sales are down in the U.S., they're growing elsewhere, Richards said. Hummer sales were up 42 percent in Europe through April, thanks to booming sales in Russia and a new right-hand-drive version in the United Kingdom. Sales in the Middle East were up 27 percent, while sales in the Asia and Pacific region shot up 345 percent as right-hand-drive versions arrived in Japan and Australia.

And there are still legions of U.S. fans for whom gas prices are a minor inconvenience if they have $57,500 to spend on an H2 or $31,000 on an H3.

"Am I going to buy the next truck? Yes. Is someone going to build the Hummer? Yes. It's an icon," said Glen Peck of Annapolis, Md., a board member of an enthusiasts' group called The Hummer Club.

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