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Sure thing, the worldwide recession has affected almost all the sectors equally badly, but currently the financial position of General Motors and other major players in the automotive market doesn't seem to be too good.
Apparently, there are good chances that the 2010 Hummer H2 and H3 may not hit the markets at all. The design phase has been completed and the prototype for 2010 H2 and H3 are ready, but GM is not sure as to whether they should really launch the new models or try to boost up the sales of current generation vehicles and gain some profits.
Setting up new production assembly of course means a whole lot of money, and marketing costs of a new product like Hummer H2 can creep up like hell!
The same trend has been seen in case of several other vehicles and the automotive manufacturers are skeptical about launching new models into the market at this point of time.
As a smart strategy to boost up current level of sales, GM is offering cash discounts on several models, and they've lowered the prices of many models in Mercedez Benz, and Chevrolet line-up to attract the customers, especially in the Asian markets.
In past couple of months, there has been a positive response from the customers in the market, due to these price drops and the level of sales have been reported to have shot up by 14-15% in Asian markets.
India and China are of course two of the biggest markets in Asian sub-continent that GM is targeting badly at the moment. They're also planning to try something similar in American as well as European markets, and you can already notice minor price drops in most of the markets.
So, let us wait and watch how well does this strategy bode for GM, and will they go ahead with their new launches this year, or play safe.
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