DETROIT: General Motors, the US auto maker, aims to cut its US marketing spend, including incentives, by $800 million (€630m; £559m) this year, a move seen as necessary after the company posted a loss of $30.9bn in 2008.
According to Nielsen, GM's adspend fell by 4% to $1.7bn in the first nine months of last year, although the company remained the second-biggest spender overall, after fmcg giant Procter & Gamble.
Fellow auto manufacturer Ford slashed its marketing spend by 23% to $1.1bn, while Cerberus Capital Management, the owner of Chrysler, reduced its expenditure by 26% to $694 million.
General Motors also reported that its North American operations recorded a loss of $14.1bn in 2008, with sales falling by 18% – or nearly 3 million vehicles – year-on-year to 13.2 million units in the region.
By contrast, its global sales rose by 5%, with volumes rising by 30% in Russia, 10% in Brazil, 9% in India and 6% in China, what tge company terms its “key four emerging markets”.
It also forecasts that total US auto sales will fall by 10.5m this year, while cfo Ray Young further warned said that the “global industry downturn really impacted emerging markets” in Q4 last year.
Data sourced from AdAge.com; additional content by WARC staff