Automakers Report Worst January Sales in Almost 50 Years†

Monthly Totals in U.S. Fall Below Those in China for First Time

Advertising Age, February 4, 2009 — DETROIT (AdAge.com) — The last time the auto industry sold roughly 669,000 vehicles in the U.S. in January, as it did this year, was in 1963, when Chubby Checker ruled the music charts and Michael Jordan was born. Adding to that bad news, China surpassed the U.S. for the first time in monthly sales, said Mike DiGiovanni, executive director-global market analysis at General Motors Corp. He said about 790,000 units were sold in China last month.

In ‘Trust Me,’ a Fake Agency Really Promotes

A Fake Ad Agency and Real Products

New York Times, January 21, 2009 — Beginning on Monday, the TNT cable channel hopes to add Rothman Greene & Mohr to those ranks as it introduces a weekly series, “Trust Me,” about a Chicago agency that competes against nonfictional firms like Leo Burnett and DDB. In another realistic wrinkle, actual products are being written into the scripts of episodes — including some, like the Dove line of hair care products sold by Unilever, that are also sponsors of the series.

With Saturn, G.M. Failed a Makeover

New York Times, December 4, 2008 — General At least G.M. knows how difficult the challenge will be.

A quarter-century ago, G.M. started Project Saturn with the same goals. And it worked, for a time. Saturn owners, including many who traded in their Hondas and Toyotas to own the first models in 1990, became cheerleaders for the division’s customer-friendly approach, while the United Automobile Workers union gave up many of its traditional restrictions to help Saturn succeed.

Motors has promised Congress that it can recreate itself as a different kind of car company — smaller, with a more cooperative relationship with its union, and a lineup of fuel-efficient cars to compete with the best of the foreign brands

Big Three May Need to Trim Number of Brands

New York Times, December 2, 2008 — For the Big Three automakers to win over Washington lawmakers in their bid for federal aid, they will have to address a critical question in the business plans they give to Congress on Tuesday. Just how serious are they about shrinking their vast lineups of different brands and models to match the current harsh reality of the market?

If GM Has a Brand, It's General Misery†

Company Has Eight Brands, but No Brand Messaging

Advertising Age, December 2, 2008 — "How Detroit drove into a ditch" is the headline of an article in the Oct. 25 issue of The Wall Street Journal.

When the most respected business publication in the world writes a 2,000-word article on the problems of the U.S. automobile industry, you have to assume it knows what it's writing about. Especially since the author of the article is the Journal's former Detroit bureau chief and a man who is writing a book about America's car culture.

GM Pondering Brand Cuts

BusinessWeek, November 28, 2008 — The Detroit Free Press reported today that General Motors, in its attempt to put forth a workable restructuring plan to keep it from going bankrupt, is looking at killing off three brands—Pontiac, Saab and Hummer.

Everyone knows that GM is over-branded. The problem has long been that the company does not want to have to pay dealers to fold the brands it does not need as it did with Oldsmobile in 2001. State franchise laws prevent a car company from simply ending a brand. Closing down Oldsmobile cost the company around $2 billion.

It’s unclear how GM could avoid paying big money to shutter the three brands.

GM ends 9-year endorsement relationship with Tiger Woods

USA Today, November 25, 2008 — As cash-strapped General Motors (GM) looks for ways to slice expenses, it's parting ways with long-time pitchman Tiger Woods.

The ailing auto giant said Monday that it will end its nine-year relationship with the world's No. 1 golfer Dec. 31. Woods' contract with GM was set to expire Dec. 31, 2009.

As the Economy Worsens, Is There Money for Play?

New York Times, November 16, 2008 — From the “Buick” emblazoned on Tiger Woods’s golf bag to the Chevrolet Camaro that Cole Hamels drove home last month for being named the most valuable player of the World Series, it is hard to be a sports fan without stumbling across some type of advertisement for General Motors. The company consistently ranks first among advertisers of televised sporting events, outspending other automakers by more than two to one.

But as G.M. faces a financial crisis that has executives pleading with Congress for a federal bailout, many are wondering how far the company’s troubles will extend into the sports industry, which is already struggling to attract advertisers and sponsors in a weakened economy.

Tough Times Complicate the Case for Buying Super Bowl Ads†

Wall Street Journal, November 11, 2008 — With advertising rates for the Super Bowl running as high as $3 million for a 30-second spot, some marketers are wondering whether during these tough economic times they can afford the big gameFedEx, a loyal Super Bowl advertiser, still hasn't decided if it will buy in. FedEx is concerned that shelling out big bucks — at a time when it's "asking employees to do more with less" — will look "wrong," says a person close to the company.

"Companies have to be mindful that jumping into the game can open them up to criticism," this person says.

Can the Chevy Volt Save GM?

Take a closer look at the plug-in electric vehicle GM hopes will kick-start a much-needed turnaround

BusinessWeek, October 29, 2008 — Far away from the complex merger negotiations and dicey political maneuvering (BusinessWeek.com, 10/28/08) that promise to reshape America's largest automaker, General Motors (GM), design director Bob Boniface is coolly contemplating the company's future.

The Volt is probably GM's last, best hope for the future and certainly its most significant upcoming vehicle. A plug-in electric car with an onboard gas-burning engine that can recharge the vehicle's batteries, the Volt has to affirm the company's ability to innovate and, eventually, create a financial foothold from which the battered automaker can begin to turn itself around.