The automaker is also suspending work on some vehicle programs and said salaried employees will recover lost earnings in a lump-sum payment within a year. Senior executives will see deeper pay cuts on top of the 20 percent deferment as the company scrambles to preserve cash.
Ford, General Motors, Fiat Chrysler, Honda, and Toyota said they would shut down all factories in the region, citing concerns for employees who work in close quarters building automobiles. Nissan will close U.S. factories. Hyundai shut down its Alabama plant after a worker tested positive for the virus.
General Motors will sit out the Super Bowl, the company confirmed. Last year the automaker aired two 30-second ads in the Big Game supporting its Chevrolet brand, but all its makes will be absent from the ad lineup during Super Bowl XLIX. GM will, however, have some presence in the game — Chevy will present the Most Valuable Player with a Chevrolet Colorado, a spokeswoman said.
The U.S. Treasury Department has slashed its stake in General Motors to 7.3%, putting the government within months of ending its direct ownership of the automaker. The government revealed in an investment transaction report Tuesday that it had reduced its stake in GM more than previously expected.
The Japanese company sold 9.7 million cars and trucks worldwide in 2012, although it’s still counting. GM sold 9.29 million. Both companies saw higher sales, but Toyota’s growth was far larger as it rolled out new versions of popular models like the Camry.
The automaker’s lackluster ads and loss of marketing head Joel Ewanick raise doubts about GM’s ability to improve sales longer term. Experts say that even though it’s making better cars and trucks, advertising has failed to get the message across. Despite spending upwards of $4 billion a year on marketing, GM hasn’t been able to dent the perception that other brands are better.
General Motors Co. ousted Joel Ewanick, the high-profile marketing chief brought in to change the automaker’s image, after company officials questioned the propriety of a deal he negotiated to sponsor the Manchester United soccer team, people familiar with the matter say.
General Motors has dismissed global marketing chief Joel Ewanick two years after hiring him. “He failed to meet the expectations the company has of an employee,” spokesman Greg Martin said Sunday, without elaborating.
Goodbye Super Bowl, hello Hallmark Channel. General Motors agreed to spend money in the TV upfront negotiations but has come away with deals that moved its advertising out of top-tier networks and shows and into less expensive units.
An examination into the motivations and an analysis of the risks of Joel Ewanick’s strategy to stare down the TV networks on price hikes.
Media buyers say the big automotive maker has been at a stalemate with CBS, and possibly NBC — which reportedly follows one it has been having at Fox over pricing. General Motors still seems on the outs with most networks because — according to media executives — it has directed its new media agency Carat USA to ask for big rollbacks, and some double-digit decreases on pricing.
The midnight shift returns. At GM, nearly one in five U.S. hourly workers now clocks in close to midnight and goes home around sunrise.
GM’s top marketing executive said today the automaker will plow savings from a recent decision to drop Super Bowl advertising into other ads and marketing efforts to support a slate of vehicle launches planned in 2013.
General Motors will not advertise in next year’s Super Bowl because it is too expensive, the top marketing executive for the U.S. automaker said three days after the company announced it was dropping paid ads on Facebook Inc. The 2013 Super Bowl will be broadcast by CBS, which is selling 30-second ads for as much as $4 million.
Troubles in Europe hurt the company during the first three months of the year. GM said today it earned $1 billion, or 60 cents per share, in the quarter. That compared with $3.2 billion, or $1.77 per share, a year earlier, when earnings were boosted by the sale of GM’s stake in a parts company.
General Motors has thrown the transmission in reverse, exercising options to cancel a substantial portion of its second quarter upfront commitments. According to several sources, GM has pulled out of nearly 50% of its 2Q upfront buys in broadcast and cable, the maximum allowable under the terms of network ad contracts.
General Motors has consolidated its $3 billion global media buying and planning account with Aegis’ Carat as part of its ongoing effort to create efficiencies and cut costs and agencies.
General Motors CEO Dan Akerson foresees flat industrywide U.S. auto sales in 2012, but says GM can continue to prosper because of a low breakeven point, sustained in part by the new contract with the UAW. Akerson’s market forecast for next year is gloomier than that of many analysts, but he doesn’t buy the predictions of a sales-juicing incentive binge.
General Motors Co. and Chrysler Group extended their existing labor contracts with the UAW after failing to agree on new deals by a midnight Wednesday deadline. GM said talks will resume today at 10 a.m. ET.
General Motors is launching a global media review — and it’s a huge one. In its March 2011 10-K, GM reported worldwide advertising costs of $4.26 billion in calendar 2010. In 2009, it spent $3.37 billion on global media, according to Ad Age DataCenter estimates.
General Motors Co. outsold Toyota Motor Corp. globally in the first six months to become the world’s largest automaker after the record March earthquake disrupted production in Japan. GM sales rose 8.9% to 4.536 million units in the half-year ended June 30, the Detroit-based automaker said yesterday. That compares with 4.13 million units at second-ranked Volkswagen and 3.71 million units for Toyota, including its luxury Lexus marque and affiliates Daihatsu Motor Co. and Hino Motors Ltd., according to statements by the companie
General Motors has signed on as one of the larger sponsors of Fox’s X Factor, becoming the second major advertiser to pledge support for the much-anticipated musical-contest program, according to people familiar with the situation.
General Motors Co. plans to step up its spending on sponsorship of TV entertainment this year, driven by a growing interest in reaching more women who might be drawn to its long-time support of sports like baseball and golf. One project in development: landing a role for GM’s plug-in hybrid Chevy Volt in a reality show.
NBC has struck a big Olympic sponsorship deal for the 2012 London Summer Olympics Games — one that is looking to regain its sports image, General Motors.