The sad tale of GM is rolling on… Everyone knows they cut their ad budget and consolidated the shops on the roster. The automaker has also opted out of the Super Bowl. They’ve spent more than $77 million in the last 15 years making them the second biggest spender behind PepsiCo and Anheuser-Busch.
Now, they’ve cut their digital spend as well. AdAge has Mark LaNeve, VP service and marketing, saying that GM “is going to pull back slightly in all media types.” Slightly? Nice PR dodge, but try massively.
GM has been downgraded by Fitch Ratings by one notch to CCC from B-. EEK! The brand is cutting spending left and right ($1.5 billion in expenses by the end of 2008) to boost cash flow. General Motors intends to draw down the remaining “$3.5 billion on its revolving $4.5 billion credit line to boost its liquidity.” Sad times, because once this resource has been tapped, it’s game over. Well, until the start begging tax payers for a bail out that is.
Jesus. The US is turning into France and I’m so not a fan of steak tartare.