GM Cuts $7 Million in Spending, by Cutting Tiger

[MadBadger]

DETROIT -- General Motors Corp. said Monday it is ending its nine-year endorsement deal with golf superstar Tiger Woods as the automaker continues to cut expenses and hoard cash while trying to survive the worst sales downturn in a quarter-century.

The cash-strapped company said in a statement that it is looking to reduce costs, and that the world's No. 1 golfer also wants more personal time as he expects his second child.



Woods
Woods has endorsed GM products around the world and mainly has been seen in Buick commercials as the company tried to give the nameplate a more youthful image. He has carried the Buick brand on his golf bag since 2000, and his most recent promotion was to caddie for a contest winner for nine holes at Torrey Pines, where Woods won the U.S. Open this summer for his 14th career major.

The endorsement deal, believed to be worth at least $7 million a year, was to end in 2009. Woods' agent at IMG, Mark Steinberg, said the decision to end the relationship one year early was "absolutely mutual."

"It was a combination of things," Steinberg said. "Tiger was looking to gain some more time, and certainly it was an opportunity for GM to reduce its spending with everything going on."

GM has been making dramatic cuts in advertising as it tries to conserve cash. The nation's largest automaker spent nearly $7 billion more than it took in last quarter and has warned that, without federal help, it may reach the minimum amount of cash required to run the company by the end of the year.

Mark LaNeve, GM's vice president for North American marketing, said GM and Woods started discussing an end to the deal earlier this year, and it had nothing to do with the Detroit Three automakers' quest for $25 billion in federal loans.

But GM's statement said the decision was made as part of "the search for budget efficiencies during a difficult economy for General Motors."

Buick said last week that it would be cutting back on its deal providing courtesy cars at PGA Tour events.

http://sports.espn.go.com/golf/news/story?id=3722964

[Ian David]

1. Oh, I bet that has Tiger Woods pretty teed-off. n/t

[Neshanic]

2. Bet the Phoenix Open has GM handing out cars like candy as usual.

[madrchsod]

3. the chinese will make up the difference

they love the buick's made in australia and they love tiger...

[LSK]

4. maybe they should cut Buick next

I fail to see the point. If you want a normal car, get a Chevy or if you want luxury get Cadillac. Whats the point of Buick?

:shrug:

[RB TexLa]

5. But the more nameplates, the more jobs. The bailout should require them to bring back Oldsmobile

as there will be more people needed to put the Oldsmobile logo on Chevrolets. They should also get rid of all automation as this would increase the number of jobs. The actual assembly lines should be human powered to create more jobs.









:sarcasm:

[LaPera]

6. Silly, no athlete or celebrity could ever influence my decision on buying a car....

or anything else!

People really must be such stupid fucking sheep as to make a decision involving anything, simply because a highly paid celebrity is endorsing the product & to get it noticed.

Duh, no conflict of interest there, huh?