The Hummer is back. And this time... it's electric.
I'm serious. General Motors (GM) is bringing back the Hummer as an electric vehicle ("EV"). And there are no plans to build a gas or diesel version, either...
This might come as a surprise to most folks. But it shouldn't surprise avid DailyWealth readers.
Last year, I covered Ford's electric Mustang. The company had done something remarkable... Ford took its flagship brand and made it electric.
Now, GM is doing the same. It's taking one of the world's toughest trucks and making it into an EV brand.
If it seems like Ford and GM have gone crazy, well, in a way they have. You see, America's top truck makers made a big mistake.
Now, they're trying to fix that mistake. And their future depends on it.
Let me explain...
America's truck makers spent years telling consumers big trucks were cool. By extension, that meant that massive gas-guzzling engines were cool.
It was an incredibly effective marketing strategy. The companies built a brand identity that earned the loyalty of thousands of Americans.
Ford sold 896,526 of its full-size F-series pickup trucks in 2019. GM, through its Chevrolet Silverado brand, sold 575,569. And other leading brands sold hundreds of thousands of trucks too.
Those numbers track "light trucks" specifically. So, we know we're talking about the trucks that consumers and working pros drive on a daily basis.
Simply put, American trucks are seen as tough, rugged, and cool. And the consumers who buy them have largely bought into this identity. Just glance through years of truck ads to see what I mean... "Built Ford Tough"... "Ram Tough"... "Chevy, Like a Rock."
The brand couldn't be clearer. Trucks are tough. And they're for strong, independent people.
Do you see the hidden mistake in this strategy? You only have to look at the other side of the marketing coin to spot it.
Ford, GM, and Chrysler spent years teaching their consumers that trucks with big engines are tough... And as a result, they taught them that EVs and hybrids were for weaklings.
Now, I'll let you decide if that was intentional or not. But at this point, the damage has been done.
EVs are here. And the market is growing faster than most folks realize.
Researchers believe that the North American EV market will grow at roughly 28% a year for the next seven years. To keep up, Ford and GM are scrambling to fix their messaging problem.
Enter the electric Hummer...
There's no sense of irony here. GM is making a full-court press to change the anti-EV image it helped create.
It needs consumers to know that EVs can be for tough and independent people too. To do that, it has built a seriously impressive truck. And it's placing it on its flagship brand – the Hummer – to let consumers know this trend is here for good.
This isn't just an eccentric experiment. GM's marketing change is essential to the company's survival. And it's just a taste of what's to come.
Ford is targeting a release of an EV F-150 by the 2022 model year. GM is on a similar timeline for an electric Silverado.
If consumers don't believe that EVs are tough by then... they'll flop. So, expect lots of "Built Tough" and "Like a Rock" EV marketing in the near future.
When I told you about the electric Mustang, I said it was, "symbolic of a major change in the car market. One that's taking place right now... whether we acknowledge it or not."
The reality is that we're at the beginning of the EV age. Ford and GM are going "all in" to ensure their brands survive the transition.
Personally, I'm excited for the electric F-150 and Silverado. And I think the new Hummer looks amazing. It's fine if you disagree. But as an investor, you must understand this...
EVs are here. And America's toughest brands are busy teaching consumers that EVs can be tough too.
P.S. Our friend and colleague Whitney Tilson believes EVs are part of a huge tech trend that will affect you and your money over the next few years. He has traveled around America in recent months talking to every expert he can find. And he's put everything you need to know in a presentation, where you'll even learn the name and stock symbol of his favorite way to play this growing trend. You can watch it here.
Everything about the automotive industry is about to change drastically. And as investors, that's why it's important to understand the four dominant factors shaping the future of cars around the world... Read more here: A 'Perfect Storm' Is Coming for This Dominant Industry.
The next trillion-dollar companies are being created right now in research labs and basement offices around the world. And these life-changing businesses will all rely on this emerging technology to make it happen... Get the full story right here.
NEW HIGHS OF NOTE LAST WEEK
Thermo Fisher (TMO)… life sciences
Dolby Laboratories (DLB)… audio technology
WD-40 (WDFC)… home-improvement products
Rollins (ROL)… pest control
Dunkin’ Brands (DNKN)… coffee and donuts
Match Group (MTCH)… online matchmaker
NEW LOWS OF NOTE LAST WEEK
Wells Fargo (WFC)… financial services
Walgreens Boots Alliance (WBA)… retail pharmacy
Intel (INTC)… chipmaker