GM to end Olympic sponsorship after 2008

[Flybrian]

GM to end Olympic sponsorship after 2008
Automaker says other ad methods more efficient than $1 billion investment

Updated: 7:12 p.m. ET Aug 6, 2007 | Link to Orignal Article @ MSNBC

DETROIT - General Motors Corp. said Monday it has decided not to renew its $1 billion sponsorship of the U.S. Olympic Committee when its contract ends after 2008.

The company said the move is a result of changes in its marketing strategy and came after GM evaluated the return on its advertising investment.

“We have other avenues to be able to reach this same audience without bearing the expense of being an official sponsor of the U.S. Olympic team,” spokeswoman Ryndee Carney said.

GM is continuing to look at spending its advertising dollars in the most efficient way, including the move to digital formats from traditional print, television and radio advertising, Carney said.

“Our current agreement with General Motors means that GM will be an official U.S. Olympic team sponsor through 2008,” USOC spokesman Darryl Seibel said. “As to where things stand with a possible renewal, we do not comment on the status of ongoing discussions with our corporate partners.”

Carney said she did not know what GM’s strategy would be for advertising related to the Olympics beyond the Beijing games in 2008. Chevrolet continues to sponsor the U.S. Snowboarding Team, and GM of Canada is sponsoring the 2010 Winter Games in Vancouver, she said.

The decision was not made because of GM’s financial condition, Carney said. The company lost $2 billion last year but has turned in its third straight profitable quarter. It is undergoing a restructuring plan that includes reducing its hourly work force by more than 34,000 with early retirement and buyout offers, and it is in the midst of critical contract talks with the United Auto Workers.

GM’s move was reported Monday by Street & Smith’s Sports Business Journal.

GM signed a 10-year, $1 billion sponsorship agreement in 1997 to buy rights as the official vehicle-maker for the U.S. team. The deal was extended through 2008 in November 2004. The company has been involved with the U.S. Olympic Committee as a sponsor since 1984.

[toesuf94]

In other news, Toyota Motor Corp has signed up to be the official sponsor of the 2010 US Olympic team...

[AxelTheRed]

So what? Did Toyota give GM a taste for its own ass on a plate and is now handing them to itself now?

[cletus8269]

"... cementing their foothold as the #1 automaker in the world..."

agreed though the money would well be spent somewhere else... like doing commercials that downplay toyotas performance claims like the ditch homebrew deal.

[hyperv6]

The Olympic's are a dead issue.

Ratings are no where near what they were years ago.

When we only had 3 networks and no dish or cable we would all sit and watch the Olympic's because we only saw this stuff once every few years. Now we can see it five times a day on five different sports networks.

Besides with the stuff people are doing in the X games Gymnastics and ice skating just pale anymore.

There is much better place for the money to be spent and get much more coverage.

Who here bought a Buick just because you could get the Olympic special edition? Mmmm..... I thought so.

Now they would do more good doing the Special Olympic's plus get a tax write off.

GM's marketing is not anymore out of tough than most marketing deparments. Most have no clue as the people hired to sell the products and are not car people or even people who love what they are selling in the first place as it is only a job.

With all the Police chases in LA on CNN at Lunch time anymore we could get GM to provide cars to the runners and let them show how well their cars perform. I may be joking but at work we all note how well some cars perform or hold up during the chase.

Edited August 9, 2007 by hyperv6

[Cadillacfan]

It's not like this billion dollar sponsorship did any good for GM. It's somewhat of a smart move when you think about all the money GM has wasted especially now that the ratings over the past decade for the Olympics are on the decline. Product is key now, not advertising in a drawn-out, and increasingly unpopular sporting event.

[FUTURE_OF_GM]

Good.

america doesn't support GM. so GM shouldn't support america.

Seriously though, I really hate to see Toyota move in to areas where GM once was the only horse in town. (For example: Toyota now sponsors FFA, Tractor Supply and Bass Pro Shops as their MAIN truck) These are small, but very influential positions in the "truck market"

Another example is Nascar.... As big a waste of money as it is, I still think 'yota will benefit from it at Detroit's expense.

[pow]

Good.

america doesn't support GM. so GM shouldn't support america.

Seriously though, I really hate to see Toyota move in to areas where GM once was the only horse in town. (For example: Toyota now sponsors FFA, Tractor Supply and Bass Pro Shops as their MAIN truck) These are small, but very influential positions in the "truck market"

Another example is Nascar.... As big a waste of money as it is, I still think 'yota will benefit from it at Detroit's expense.

I know... on Toyota's homepage the other day, there was a link to this.. http://www.toyota.com/events/index.html?s_van=GM_TN_EVENTS

They've got as much covered as they can... USA Swimming, Bass fishing, motocross, pro-cycling, and son on.

[Flybrian]

Tractor Supply...because real professionals buy Tundras.

[vrazzhledazzle]

Lol, I would shoot myself if Toy signes as sponsor. This is actually a move I am glad to see GM making - advertising is one of their worse things. If their Ads impoved as much as their cars it would be awesome. Lastly, I don't know about China being a good place to sponsor a US team. I wouldn't use Buick name there unless you are sponsoring the Chinese team.

O, and the contract was worth $900 million, not a whole billion.

[cletus8269]

woder if they use lead based paints on the cars like they do the toys...?

[prinzSD]

I love this comment from DeLorenzo at autoextremist

3 down arrows for NBC. The card-carrying members of the anti-car, anti-Detroit "intelligentsia" in the media on both coasts love to heap derision on Detroit and anything to do with American-sourced cars, but oh how they love to lap up Detroit's ad money. This duplicitous dance has been going on for years now, and the fact that NBC is reeling from GM's Olympics decision is poetic justice. What's that old saying about not knowing what you'll miss until it's gone? Or, as NBC suits scramble to make nice with GM marketeers after the fact, the GM-ers can paraphrase the great Rod Tidwell with, "You lovin' us now, aren't ya'?"

It's about time the media who loves to bash the big three get it in the face when they lose marketing dollars from GM, Ford and Chrysler. They can't have their cake and eat it too. I just ready the Friday paper on my morning commute on Amtrak and like almost all Friday's their is mention of the big three losing market share (this Friday is GM's turn). But I must also say there was a review of the Enclave which got a great review and was considered better then it'ss competitors. GM needs more of these types of vehicles across the entire Division structure.

[Drew Dowdell]

Oh nooooosss!!@!!21!!!!1

And I was going to buy a 2010 Buick LaCrosse Olympic Celebration Edition!!! :( :( :( :( :(

Edited August 10, 2007 by Oldsmoboi

[cletus8269]

maybe with all theat money they saved, they can do commercials like hyundais... maybe not so far as to say DUH to the mission impossible theme, but something along those lines