GM Slashes $800 Million From Marketing Budget for 2009

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.


2009 Geneva Motor Show Photo Gallery

2009 BMW 7-Series USA Press Launch Photo Gallery

Remember, if YOU have photos you want published, email them from your cellphone, digital camera or pc to mobile@autospies.com


Read Article

dumpsty - 2/27/2009 1:46:36 PM

+1 Boost

So, does these cuts mean no dealer rebates or cash back or customer cash?

Wow, I thought many of these incentives is what gets people in the showrooms regardless of how many people actually qualify for it.

marinaside1199 - 2/27/2009 2:31:00 PM

0 Boost

R.I.P GM

TopGear - 2/27/2009 4:52:48 PM

+4 Boost

GM doesn't need advertisement. We hear about GM on the news everyday.

veyron1001 - 3/2/2009 11:18:30 AM

+1 Boost

Yep wasting money, wanting more bailouts, broken promises, false statistics, ceo retiring, claiming to save money. The list goes on.

veyron1001 - 2/27/2009 11:10:03 PM

+1 Boost

So that is what 29+ billion to go? Interesting how a company that is billions in the red for years can get a bailout but me in the green can not get one.