General Motors (GM) has emerged from bankruptcy after filing for Chapter 11 administration in early June. Still called General Motors, the “new” auto maker is now 60.8% owned by the US Government, 11.7% by the governments of Canada and Ontario, 17.5% by UAW retirees, and another 10% is owned by bondholders from the “old GM”.
The auto maker also revealed that it will only maintain four vehicle brands in its group, including Chevrolet, Cadillac, Buick and GMC, as these four are more profitable than the rest. Other brands such as Saab and Saturn were put on sale, while the Pontiac brand name has been shelved.
The auto maker will still continue to scale down its operations by reducing plants, dealers and a portion of it’s workforce, in the name of improving efficiency. GM, which has Fritz Henderson as it’s President and CEO and Ed Whitacre from AT&T as it’s chairman, has also also cut lose a total of 54 advertising and marketing contracts.
Such contracts include the placement of a Chevrolet Clock at Times Square (since 1930’s), sponsorships for the Oakland Raiders (American football team) and the Arnold Palmer Invitational tournament (golf event) and more.
For the record, the so-called “struggling” auto maker has spent US$424 million in advertising and marketing just for the first three months of 2009! Although the figure is down by 20% from last year, it is still alot.