Despite recent government loan commitments, General Motors is sticking to a reduced ad budget for Q1.
GM spent $3 billion last year, making it the country's fourth-largest advertiser. But with car sales plummeting, it looks like the borrowed money will be spent elsewhere.
Mark LaNeve, VP-vehicle sales, service and marketing North America for GM, said the recent loan announcements "have no effect on our ongoing efforts to scale our marketing activities."
Until GM sorts through its business strategy, it probably makes sense to scale back a bit.
GM told Congress earlier this month it would focus on four of its eight vehicle brands: Chevrolet, Cadillac, GMC and Buick. Pontiac may become a niche brand with a reduced lineup, and the future of Hummer, Saab and Saturn are up in the air.
Once a profitable business strategy gets sorted out, advertising will most likely return, with the need to get the message out that a new GM is ready for business.
Source: Advertising Age
