Chyrsler, Ford Cut Ad Spend; GM, ToMoCo Up the Ante
When the going gets tough, the tough amp-up the ads. As the Detroit News reports, that's certainly the philosophy behind GM and Toyota's increased ad spend. In the teeth of the perfect storm (or dead calm) afflicting new car and truck sales, the automakers upped their first quarter ad budget by 13 and 8.4 percent respectively. That's a not-inconsiderable additional $535m for The General and $291m for the world's largest automaker. On the uh-oh side, cash-strapped Chrysler decreased their ad spend by a full 42 percent (-$186 million) while Ford sliced their ad outlay by 31 percent (-$292m). Ford mouthpiece Jim Cain provided the necessary piercing glimpse into the obvious: "The economy and vehicle sales do affect total spending." However, the DetN points out that "Ad expenses also fluctuate depending on when the Dearborn, Michigan-based company is introducing new and redesigned models." So the fact that Ford's launching the Flex in the first quarter means… what? Meanwhile, once again, Chrysler says… nothing.
More by Robert Farago