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DEC 2008

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?

Category: Brand
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DEC 2008

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.

Category: Brand
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NOV 2008

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.

Categories: Brand, Marketing
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NOV 2008

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.

Category: Brand
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NOV 2008

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.

Category: Marketing
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NOV 2008

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.

Category: Marketing
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OCT 2008

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.

Category: Innovation
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OCT 2008

Chrysler's Woes Are Partly The Result of Poor Quality

Auto Makers Showing in Consumer Reports Survey Is Evidence of Miscues

Wall Street Journal, October 27, 2008 — Detroit's Big Three look like they will soon be a Smaller Two. Industry leaders and investors are still absorbing the idea that Chrysler LLC could disappear. A lot of consumers have already moved on.

Chrysler's woes arise from many mistakes, compounded by bad turns of luck. But the company's failure to keep up with rivals on quality is a significant, and underrated, factor in its current crisis.

Category: Brand
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OCT 2008

Buying from a 'dying' car brand

When car brands go away, the service continues but your value can dry up

CNNMoney.com, October 22, 2008 — With all the problems in the auto industry, you may wonder if the car brand you're thinking about buying today will be around tomorrow.

The bottom line is this: "You should stick with the strongest brand," advises Robyn Eckard, a spokeswoman for Kelley Blue Book, which tracks automotive values.

It's not what could go wrong with your car while you own it, she said. It's what happens when you want to unload it.

Category: Brand
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OCT 2008

How to Cope with Aging Brands

The story of brands getting old is a story of relevance.

Prophet, October 1, 2008 — Individual brands, or even whole categories, that were once important for a particular consumer segment, become irrelevant as society evolves and tastes change.

Category: Brand
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