General Motors is cutting its 2006 national marketing budget by more than $200 million, according to a report in
Automotive News. Quoting unnamed sources, the trade magazine said the giant
automaker's national advertising budget would total about $1.3 billion this year, in which the company is planning several crucial product launches and renewed attempts to promote GM's new price
strategy. The report said the cuts will affect older vehicles and brands like Buick and Pontiac as GM focuses its advertising efforts more on product launches that include SUVs and pickups. The moves
come on the heels of a disastrous 2005, in which the company was plagued by layoffs and huge losses. Historically, GM has led media spending among automakers, and the company said it will continue to
be "the biggest player on the block" this year, according to Brent Dewar, GM's vice president of marketing and advertising. Dewar declined to confirm any budget changes. The magazine reported that
although the automaker is sending a cost-cutting message to all its units, it will still spend $100 million to advertise during the Winter Olympics, which start Feb. 10. GM spent about $30 million in
January on advertising its new lower pricing strategy for Chevrolet.
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