With Chrysler and General Motors in bankruptcy many are looking at the ramifications this will have on the industries that supply goods and services to support the automakers. While General Motors is seeking to approval to pay “certain essential suppliers” to its manufacturing operations, we can expect media suppliers to feel more pain during these bankruptcies.
A recent report at autoblog states, Obama administration's auto task force slashed Chrysler ad budget by 50%:
TheDeal.com has a report today that provides a look at the General Motors bankruptcy filing and its media spending. The exact impact on print media is unclear, but remember, in the past few years GM has been shifting its ad spending to electronic media (half of their $3 billion marketing budget last year).
Chrysler is nearly two weeks into its bankruptcy, and the Auburn Hills, Michigan-based automaker is already getting an idea of just how engaged the Obama administration plans to be in the process. Chrysler planned to spend $134 million dollars on advertising during its supposed nine weeks of bankruptcy, but the Auto Task Force has reportedly cut the figure in half.