GM is introducing a new Hummer - the H3. The H3 is actually much smaller; its more like the size of a Jeep Liberty instead of the regular Hummer that we are used to. With this new Hummer, GM addresses the major complaint that they received with the H1 and H2 - cost. Not only is the H3 more affordable than the other Hummers, but it also has better gas mileage. It is said that the new Hummer can get up to 20 miles per gallon. The H3 also has a 5-cylinder engine with most of the off-road capabilities that the regular Hummer offers.
GM is trying to increase the demand curve of the Hummer. They are doing this by using price as a tool to increase demand. The H3 is more affordable both directly (cost of vehicle) and indirectly (cost of gas) and more people with different income levels can afford it; thus shifting demand.