New GM slashes spending

The new era at General Motors has begun following its emergence from bankruptcy with millions of dollars worth of sponsorship dumped by the company. The federal judge overseeing proceedings allowed General Motors Company to drop 54 contracts relating to advertising and sponsorship.

Although there was no official figure attached to the cuts, it is believed it was worth tens of millions. A large number of the contracts related to several of GM's now defunct brands including Oldsmobile and Pontiac but others covered the remaining quartet of Chevrolet, Cadillac, Buick and GMC.

Despite a presence since the 1930s, GM ended its sponsorship of the clock in New York's world famous Time Square, proving nothing was sacred in the latest round of cuts by the beleaguered corporation. Several NASCAR tracks and teams were also told they would no longer be receiving financial backing from GM, including Daytona Speedway.

These moves follow the decision to drop renowned documentary filmmaker Ken Burns and Buick endorsee, golfer Tiger Woods.

Speaking in a live webchat on GM Fastlane blog, recently installed marketing czar Bob Lutz revealed his focus is trying to sell General Motors to the public again after months of damaging PR. And he admitted that the previous regime had missed the marketing target.

"My top priority now is to enhance the ability of GM to let the public know about what great cars and trucks we build," Lutz said. "For all the money spent in the past, this seemingly simple task has eluded us."
 
He added that he was beginning the process of overhauling advertising across all four brands.

"I think you will very quickly see a drastic change in the tone and content of our advertising. And if you don't, it will mean that I have failed," Lutz said.

The self-confessed 'car guy' admitted that the only way GM could overcome the damage done to the company's reputation was to produce undeniably good cars.

"It's certainly not easy and the only recipe I know is to create new cars and trucks that are so compelling in their design and value proposition that even those unsure about GM will say, 'I've gotta have that car,'" he said. "Beyond that, it's a task for communications and advertising and that's where we need to improve our effectiveness."

He further added: "The number one priority will be to create both the PR and advertising messages that will not only break through but actually leave consumers with an enhanced view of each of our brands. Easier said than done, but we must do it."

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