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Auto task force sets GM’s bankruptcy ad budget

06/19/2009, 4:54 PM

By Drew Johnson

General Motors has received more than $47 billion from the federal government over the last few months, but the Detroit automaker will be limited to a $40 million to $50 million monthly advertising budget while under Chapter 11 bankruptcy protection.

GM had been rather mum on its advertising budget while under bankruptcy protection, but GM marketing head Mark LaNeve revealed the information last night in an interview with Advertising Age, a sister publication of Automotive News.

That monthly budget – set by President Obama’s auto task force – will cover GM during its 60 to 90 days of bankruptcy. In all, GM’s bankruptcy ad budget will total somewhere between $80 million and $150 million.

In contrast, the auto task forced only allowed Chrysler about a $30 million a month ad budget while it was in bankruptcy. Chrysler had requested a $60 million a month ad budget.

While most of GM’s ad budget will go towards promoting its four core brands, a portion will be set aside to promote the GM corporate brand in a bid to curtail some of the company’s recent negative news.

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06/19, 5:08 PM

posted by:

RaineMan

They should have a 0 dollar advertising budget. They don’t need to advertise the same old cars they’ve been making for years.

06/19, 5:48 PM

posted by:

leftwingagenda

if advertising really helps sales, this would be a good time for ford to dump 100 mil per month in and gobble up as much market share as they can…

now, whether advertising is really that effective, i have no idea…but it’s the first thought that crossed my mind…

06/19, 5:54 PM

posted by:

cab396

They should hire the Jack-In-The-Box ad agency….have you guys seen a car ad recently that would drive you to a show room? Like the rest of our Prez’s programs, it’s throwing sh-t at a wall!

06/19, 7:32 PM

posted by:

AutoCritical

Interesting about some of the ‘get rid of ads’ comments. I’ve never really ‘responded’ to an advert for a car… I don’t think I ever would since I/we follow the industry so closely… We also know what we like, and what we aspire to have…

People like my parents, my mother specifically has responded to an advert…that’s where they get those sales I guess….justified?

06/19, 8:11 PM

posted by:

mayer_ray_nagin

POSident Oblowhard of all people should understand the benefits of false advertising.

06/19, 9:09 PM

posted by:

carstuff

Of course advertising is needed. Today though the question is is where should that advertising be. As most can tell here GM is heavy into web and now also social media such as facebook and Twitter. Personally I do not do either (spend too much time here anyway) but the youngsters are really into it.

This $40 million is only while GM is in bankruptcy and in 2 months they will be out.

06/19, 9:11 PM

posted by:

carstuff

OK, now it looks like the above is incorrect:

“General Motors Corp. has been tight-lipped about what it’s planning to spend while in bankruptcy, but Ad Age has the answer: $40 million to $50 million per month, which comes out to about same dollars-per-vehicle rate as before it filed for Chapter 11. That translates to between $80 million and $150 million, depending on how long it takes GM to dig itself out.

The numbers come from the automaker’s top marketing official, Mark LaNeve. The company’s VP-sales, service and marketing for North America had dodged several Ad Age inquiries on the subject and, in fact, on June 4, said, “We do not disclose absolute ad budgets.” That was until last night, when he answered queries sent by this reporter via e-mail to John McElroy’s “Autoline After Hours,” a weekly live web cast show that featured Mr. LaNeve as a guest.

He said the government’s auto task force never prescribed an ad budget for GM during the expected 60 to 90 days the company will be in Chapter 11 before the “new” GM exits bankruptcy court. He also said that before the task force approved GM’s proposed ad budget, it did its “due diligence,” asking the car marketer how much it spent per vehicle on ads. It also sought data on competitive ad spending, such as how much Mercedes-Benz spent vs. GM’s Cadillac brand.”

06/19, 10:24 PM

posted by:

Borat

Lets get it over it and call American Leyland. Google kids for British version.

06/20, 7:51 AM

posted by:

HavanaRob

And here I thought Obama said he wasn’t going to get involved in running GM? Or is this one of the many “fundamental decisions” they would only be involved in? As usual, everything out of his mouth has an expiration date, and this one wreaks of two week old cottage cheese left out in the sun.

06/20, 10:21 AM

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06/20, 10:43 AM

posted by:

mayer_ray_nagin

I think we highly intellectual believers in individual liberty like me as well retards who believe in big government like LWA, spg, and teahead will all agree that spam-monkeys like Silvia can go rot in hell …. or worse yet in a federal bureacracy that is “here to help.”

06/20, 11:52 AM

posted by:

carstuff

Havana, did you read what I said? LLN was wrong.

06/20, 7:28 PM

posted by:

Borat

Let me repeat 3 biggest lies:

1. I will not come into your mouth
2. Check is in the mail
3. Government is to help you

06/20, 8:22 PM

posted by:

leftwingagenda

just taking time out from the big government retard meeting this weekend to check posts and comments…hi guys!

06/21, 10:30 AM

posted by:

jdasch1

Most advertising for the auto companies are done with “top of mind advertising” objectives….not purchase driving objectives. I would think GM needs to concentrate on the “summer clearence” or “4th of July sale” type of advertising instead of the crap they are trying to shove at us right now like “we are starting over round one” or ” our cars are better than Honda Howie Long style” kind. But they need to start by cleaning house by canning people like Marko LaNeve. Government Motors….bailout nation, coming soon to everyones tax bill.

06/21, 11:11 AM

posted by:

mayer_ray_nagin

But Jdasch, you are being practical, but the DC adminstration- and Chitcago mafia-run Govt Motors is not about doing the proper business thing, but instead its about appearing to represent something new and fresh despite that the same retarded turds are floating around the unflushed toilet of DC and GM. Hence the “hope and change” crap that the obamatards bought, and the “we are new” crap that GM thinks everyone is going to believe. “We are new” does not mean “we are better,” but if you repeat it enough then Yes You Can be fooled again!

06/21, 9:13 PM

posted by:

leftwingagenda

meh, time will tell, and until then, your criticisms are hopeful at best…and it’s really not as if a mccain white house would’ve let gm and chrysler fail entirely, a bailout would’ve likely happened no matter who was in office…deny it all you like, but it’s the truth…

http://thinkprogress.org/2008/10/31/fiorina-mccain-auto-bailout/

 
 
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