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Sponsor trouble ahead?

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Anyone else see the reports about GM pulling back on sponsorships?

GM to Cut Sports Ties, Refocus Marketing

July 15, 2008

-By Steve Miller

General Motors said today that it would cut and consolidate its marketing and sales budget, including motorsports activity that will likely involve Nascar sponsorship.

The automaker's marketing focus going forward will be "protecting launch products and brand advertising," GM chairman Rick Wagoner said in a statement.

The automaker, whose stock dropped Monday to $9.38—its lowest in 50 years—is seeking to boost liquidity by $15 billion through 2009 via cutbacks and job cuts.

Some of GM's eight brands have increased ad spending, even as sales have faltered, but not all of them. Its best-selling brand, Chevrolet, increased spending through April by 19% (not including online), per Nielsen Monitor-Plus, even as sales dropped 13%. GM overall spent $1.89 billion on ads last year and $641 million through April, as total sales dropped 12.3%, per Autodata, Woodcliff Lake, N.J.

GM already started pulling back from some of its sports ties. In January, Cadillac opted out as a sponsor of the Masters golf tournament. GM also said it would not to renew its $1 billion sponsorship of the U.S. Olympic Committee when its contract ends after this year's games. And Chevrolet recently ended its primary sponsorship of the Nascar Childress Racing team.

The cutbacks on motorsports and Nascar are significant, considering GM, and particularly Chevrolet, have been involved with auto racing since the mid '60s.

The predicted decrease in racing spend overall could account for 20% of an annual motorsports budget that was nearly $100 million, said Peter DeLorenzo, a former auto ad executive and editor of the blog.

"I don't think [a cutback in Nascar affiliation] will make a [PoorWordUsage] bit of difference," DeLorenzo said. He added that the Nascar's "Cars of Tomorrow" initiative—which GM took part in along with Chrysler, Ford and Toyota—"reduced its brand recognition with the sport to the point that Nascar is irrelevant."

IMO this is a sad deal. The Ford vs Chevy vs what helped make NASCAR popular.

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  • Your Responses - Share & Have Fun :)

    • Thanks wanderer, we have a JD dealer in town so that’s a plus for me. 
    • Thanks for the advise everyone! Lots for me to take in and work on. Great pictures LHarris!
    •   Do you have to re-jet for those as well?
    • I don’t have any experience with the Hustlers so I can’t compare them.  I picked up a used Z track with a 60 inch deck and am glad I did.  I mow probably 3 acres though and a lot of it is a flat meadow as we call it.  It’s the bomb out there.   When I get up closer to the house and have contours and trees it gets a little tougher.  The front left deck wheel sometimes gouges into the turf if I turn too sharp in certain spots and getting between some trees is a challenge with the 60.  If I didn’t have the big flat to mow I’d look for a 54.   Either way, don’t turn truly zero turn your zero turn.  You’ll twist a hole in your turf if you don’t keep that pivot wheel turning at least a little bit.   Other thing to note: I added a power flow bagger with 3 bags for fall clean up.  It’s a life saver IMO.  But it doesn’t clean as well as the (2) bagger on the 48 inch rider.  That thing is like a vacuum but it takes way longer due to dumping frequency.   To do it over again I would consider a tow behind bagger for the fall but still don’t know if I’d want to use that for regular mowing.
    • Thanks rl_sd! 
    • Done with trail riding but plenty of snow on the lakes up here so I'm leaving one sled ready for late ice crappies.  Pulled the reeds on the Renegade to inspect and clean, then ended up ordering up a set of Boyesen rage cages.    
    • seen a robin yesterday...  
    • I work nights, so don't see any weekday games, but of the weekend games I have seen, tonight was the best of the year.
    • I’ll second the Hustler recommendation.  I have a fastrak 54” and couldn’t be happier. Put about 350hrs on the last 4 years. Had a 42” JD before this one, and darn near cut my mowing time in half. If you got the hustler route, get the front flex springs.... they ar worth the money