Debbie Schlussel: AUTO-Crat in Chief: Obama Halves Chrysler's Marketing Budget

By Debbie Schlussel

When Barack Obama joked at the White House Correspondents Association dinner that Car and Driver named him auto executive of the year, he was supposed to be joking.

But he really wasn't. The last laugh is on the companies who accepted government bailouts and the resulting government-style management.

Chrysler wanted to spend $134 million in advertising over the nine weeks it's expected to be in bankruptcy -- the U.S. Treasury's auto-industry task force gave it half that.

So if GM, which is wrestling with the possibility of a Chapter 11 filing itself, is wondering how much influence the task force will have over marketing, the answer is: plenty. However, transcripts from the U.S. Bankruptcy Court for Southern District of New York, where the Chrysler case is being heard, proved for the first time that the task force at least understands that advertising is a necessary expense -- even if it doesn't think Chrysler needs $134 million for nine weeks of car ads.

As Chrysler prepares to spend the $67 million the task force approved, GM is cutting back as it tries to slim down to satisfy a June 1 deadline set by the Treasury's auto task force. Few, however, believe GM can avoid following Chrysler into bankruptcy court. . . .

GM reduced ad spending "some" in the first quarter, Chief Financial Officer Ray Young revealed last week in a conference call about the company's $6 billion global loss in the period. He noted in the call that GM is closely following Chrysler's procedures "in case we have to go through it."

Can't wait until Obama goes to BBDO ad pitch meetings. (Where's Don Draper when you need him?) Maybe they should put a hammer and sickle in the ads. You know, just for truth in advertising.

Posted by Debbie on May 12, 2009 05:32 PM to Debbie Schlussel