As General Motors Corp.'s losses grow, so does the amount it plans to cut on marketing spending. In a 40-page document of financial results released today, the automaker disclosed that it will slash marketing in North America -- including vehicle incentives -- by $800 million this year alone.
In a December filing, GM had said it would cut advertising and marketing spending in the U.S. by $600 million by 2012. Presumably, that figure did not include incentive spending. In today's document, the automaker said the cuts were necessary due to lower sales volumes.
Chief Financial Officer Ray Young said in an earnings call today that GM had to use a lot of incentives in the fourth quarter to offset the lack of credit from GMAC, but still eliminated leasing in Canada last year and is reducing leasing in the U.S. "That's an expensive form of incentive," he said.
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