Hummer's Status, Sales Taking Hits

Soaring gas prices and the resulting fall in sales of large vehicles have GM revving up plans to put its iconic Hummer on the road to change.

And, as CBS News correspondent Sandra Hughes reported on The Early Show Wednesday, it's not just the Hummer's sales that have been declining -- its place among status symbols has, as well. Which in turn doesn't help sales any.

With gas prices averaging over $4 dollars a gallon in many parts of the country, the large SUV segment is paying the price.

On Tuesday, General Motors announced it may be ridding itself of the Hummer.

GM purchased the brand nine years ago, when its sales were booming -- driving the gas-guzzler was seen as a status booster.

It even drove into pop culture in such movies as "Night at the Museum" and "Talladega Nights."

But with Hummer sales down 30 percent, GM CEO Rick Wagoner says, "We're considering all options for the Hummer brand, from a complete revamp of the product lineup to a partial or complete sale of the brand."

With predictions that gas could soar to as much as $6 a gallon -- even having California's movie star-governor, Arnold Schwarzenegger, driving one isn't enough to keep the Hummer cool, Hughes points out.

While Hummer was once the must-have celebrity car in Hollywood, Hughes notes, today, it's cool to be green: Stars would rather be seen in a car such as a Toyota Prius -- a hybrid.

GM isn't just facing falling sales of Hummers -- all its SUVs and trucks are tanking. "We need to address rapid industry shifts away from trucks and SUVs," Wagoner says.

So, GM is closing four assembly plants -- cutting production of Chevy Silverado and Suburban. Some 2,900 workers are losing their jobs in Janesville, Wis. GM worker Eric Halverson says, "They don't realize how much gm means to this town. It's gonna hurt"

There are three other plants that build gas guzzlers that are on the chopping block, one in Canada, one in Mexico, and one in Moraine, Ohio -- a total of ten thousand jobs.

GM will change its focus to smaller, more fuel-efficient cars. It's starting production of a new plug-in hybrid called the Volt.

The problem is, Hughes says, that those big gas-guzzling status symbols brought big profits to auto makers, but now Detroit has no choice but to shift gears to smaller and greener.

Industry insiders believe yanking the Hummer from the mix could bolster GM's credentials among consumers who are not only concerned about gas prices, but the environmental impact large SUVs can have.