General Motors: Budget Cut Crazy?

GM Style EventFor the past two years, General Motors Corp. has hosted the GM Style Event as a pre-party for the North American International Auto Show, held each year at the Cobo Center in Detroit. This event brought the rich and famous to Detroit with fabulous entertainment from folks such as Kid Rock, Mary J. Blige and others.

This year, however, GM has decided to call off the event in an effort to reduce costs. The cost cuts are being made to allow for the company to get through a trying time, in fact their slowest sales time. General Motors, like other automakers, are experiencing rough times due to consumers making the shift to purchasing cheaper, more fuel-efficient vehicles.

The loss of this event not only puts a damper on the auto show but also the city of Detroit’s profile. "Obviously we’d love to have it," said Joe Serra, senior co-chairman of the 2009 auto show. "But you’ve got to respect the business decisions they are making. It’s one of those tough ones."

This is not the only event that GM has failed to promote due to their cost cuts. They have also decided not to promote at the Emmy Awards or next year’s Academy Awards. Marking research analysts say that the advertising cuts that GM have made are not surprising given GM’s restructuring efforts.

What are your feelings on GM’s cutting cost plans? Canceling this Style Event – good or bad idea?
 

[ Detroit News ]

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One Response to General Motors: Budget Cut Crazy?

  1. D Craven says:

    It shows that even large corp. such as GM are suffering from decisions our elected officals have made. When are we all going to get smart and not take this crap anymore. I guess when were all broke!!!!

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