Posted by Jim Lindgren:
Government Cuts Chrysler Advertising Budget.
http://volokh.com/archives/archive_2009_05_10-2009_05_16.shtml#1242368091
The federal government cut Chrysler's [1]advertising budget by half:
The Obama administration appears to have reminded Chrysler about
the cost of accepting government bailouts: with federal funds comes
federal control.
A report this week in Advertising Age said that Chrysler wanted to
spend $134 million in advertising over the nine-week duration of
its bankruptcy. But Mr. Obama's auto-industry task force sliced
that figure in half.
Robert Manzo, executive director of Capstone Advisory Group and a
Chrysler consultant, testified at a May 4 hearing in bankruptcy
court that the task force "believed that it was not feasible to not
spend anything on marketing and advertising for fear of eroding the
image of the brand." But, Ad Age said, the task force overruled the
car maker. . . .
Mr. Obama's Presidential Task Force on the Auto Industry includes
Treasury Secretary Tim Geithner and officials from the Commerce,
Transportation, Labor, and Energy departments, plus representatives
of the EPA, White House, the Economic Recovery Advisory Board, and
the National Economic Council. It includes no professional
marketers.
Expect bailout-recipient General Motors to be paying close
attention.
This cut might be a sound executive decision or it might not, but I
think it should be made by Chrysler management and the bankruptcy
court.
References
1.
http://www.cbsnews.com/blogs/2009/05/14/business/econwatch/entry5012735.shtml
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