Re: Proof the Bailouts Were Necessary

Reuters) - General Motors Co signed a sponsorship deal with Manchester United on Monday after rewording the terms negotiated with the popular English football club by the U.S. automaker's ousted global marketing chief.

Under the seven-year jersey sponsorship deal starting in 2014-2015 for the Chevrolet brand, GM will pay $60 million to $70 million a year, said a person with knowledge of the contract who asked not to be identified. GM also will pay the club a $100 million activation fee, making the deal's total value worth as much as $600 million, the person said.

By comparison, insurance broker Aon Plc pays about $31 million a year for the current jersey sponsorship, which runs through the 2013-2014 season.

On Sunday, GM ousted its global marketing chief, Joel Ewanick, without giving specifics. Sources told Reuters that Ewanick failed to properly report financial details about a recent sponsorship deal with the football club. That resulted in a rewording of the deal before it was announced on Monday, the sources said. The persons requested anonymity because they are not authorized to discuss contract details.

GM announced on May 31 that Chevy would take over as Manchester United's automotive sponsor, replacing Volkswagen's Audi brand. Terms of that deal, which runs for five years, were not disclosed, but analysts said it is likely worth at least tens of millions of dollars. It was unclear whether Ewanick's ouster was related to the first Manchester United deal, the second, or both.

GM on Monday again declined to discuss why Ewanick was fired. The automaker had previously said that Ewanick had "failed to meet the expectations that the company has for its employees." Ewanick has declined to comment.

GM and Manchester United officials did not reveal terms of the deal announced on Monday.

GM, which spent almost $4.5 billion on advertising last year, said in May it wanted to tap in to Manchester United's estimated 659 million fans around the world to boost the image of its Chevy brand, especially in Asia. The automaker also announced a four-year auto sponsorship deal last week with Manchester United rival Liverpool.

While GM would not discuss Ewanick's departure, some industry officials said a deal as big as the Manchester United sponsorship agreements would have been signed by multiple executives. They also raised the possibility that GM simply wanted to dump Ewanick as the automaker's U.S. market share has declined by nearly 2 points in the first half of 2012 compared with the year before to 18.1 percent despite a raft of new, well-received cars and trucks.

"They were angling for Joel to be gone for several months," said Peter DeLorenzo, editor in chief of the auto website Autoextremist.com. "He turned a lot of people off. He's so 180 degrees from the staid GM system.

"The moment he got in there, you could count the days until he was going to get exited from the company," DeLorenzo added.

AGENT OF CHANGE

However, sources said GM was committed to Ewanick and his efforts to shake up the automaker's image. Ewanick, 52, was named vice president and head of GM's U.S. marketing in May 2010, about seven months before the automaker's blockbuster initial public offering in November of that year.

Brought in by former GM chairman Ed Whitacre, former vice chairman Robert Lutz and current North American chief Mark Reuss, the high-energy Ewanick was given free rein to shake up GM's marketing, which had been perceived as stale.

The first major effort under his watch was the "Chevy Runs Deep" campaign that launched at the start of the Major League Baseball's World Series in 2010. Critics said the campaign has failed to connect well with consumers.

When he was promoted to global marketing chief in December 2010, Ewanick said the move was intended to give marketing a seat at the executive conference table and a say in planning and budgeting for new GM vehicles.

Ewanick, who was credited with helping to drive Hyundai Motor Co's fast growth in the U.S. market, steered GM back to sponsorship of high-profile events like the Super Bowl.

In May, he announced GM would pull its paid ads from Facebook days before the highly anticipated initial public stock offering for the social networking website, and said GM would not advertise on CBS during the 2013 Super Bowl because they were both overpriced.

Ewanick also led GM's effort to drive down the ad fees paid to broadcast TV networks during the advanced selling season that ended in June, said Brad Adgate, senior vice president of research at Horizon Media. The big four U.S. TV networks garnered single-digit increases from advertisers.

With his aggressive cost-cutting and a hyper personality some found off-putting, Ewanick clearly made enemies. One former GM executive, who asked not to be identified, received an email about the marketing chief's ouster with the subject line "Ding Dong, the witch is dead."

GM Chief Executive Dan Akerson previously said the automaker needed to focus more on marketing.

The "Chevy Runs Deep" campaign, which features the voice of actor Tim Allen, has aimed to focus buyers on the positive association many Americans had with GM before the long decline that culminated in its bankruptcy and $50 billion bailout by the Obama administration in 2009.

In April 2010, GM's Whitacre ordered the ouster of Campbell-Ewald, which had handled advertising for Chevy for over 90 years in favor of San Francisco-based Goodby, Silverstein & Partners, which is owned by Omnicom Group Inc and best-known for the "Got Milk?" ad campaign. Goodby worked with Ewanick at Hyundai.

Campbell-Ewald created some of the most memorable advertising campaigns in U.S. auto history for Chevrolet, including the "Baseball, hot dogs, apple pie and Chevrolet" ads of the 1970s and "See the USA in your Chevrolet" in the 1950s. Industry officials said agencies that were cut may see Ewanick's ouster as a chance to get back in the door with GM.

Earlier this year, GM announced efforts to save $2 billion over five years by pruning the number of ad agencies it uses.

Chevrolet sold 2.48 million cars and trucks in the first six months of the year, and the U.S. market accounted for 42 percent of that total. GM is pushing to boost demand for the mass-market brand in China, Brazil and Eastern Europe, and other regions.

Appealing to consumers overseas was a big reason for the sponsorship deals with Manchester United, which set terms for its initial public offering on Monday. The football club's current jersey sponsorship deal is with Aon, which pays for the right to put its name on the front of jerseys worn by players during games. That practice is quite lucrative for football clubs around the world, but is not allowed by most U.S. sports leagues.

Alan Batey, GM's North American vice president of sales, was named the interim head of GM's marketing. The automaker declined to make him available for comment.

******************************************************

Meanwhile the Japanese build cars that don't suck

The core joke of Hitchhiker's Guide to the Galaxy is that of course no civilization would develop personal computers with instant remote database recovery, and then waste this technology to find good drinks.
Steve Jobs has ruined this joke.

2 (edited by Burned Waffles 02-Aug-2012 07:47:03)

Re: Proof the Bailouts Were Necessary

Wow. Just wow.

Hey [buddies], try to defend this [post]. It'll be funny to watch.

[I wish I could obey forum rules]

3 (edited by Burned Waffles 02-Aug-2012 07:35:24)

Re: Proof the Bailouts Were Necessary

[no insults pls]

Re: Proof the Bailouts Were Necessary

enough of insults or we will consider closing politics forum again!

Proverbs 11:14 "Where there is no guidance the people fall,
But in abundance of counselors there is a victory."

Re: Proof the Bailouts Were Necessary

yikes  "commies" isnt an insult since some communists are here!

The core joke of Hitchhiker's Guide to the Galaxy is that of course no civilization would develop personal computers with instant remote database recovery, and then waste this technology to find good drinks.
Steve Jobs has ruined this joke.

Re: Proof the Bailouts Were Necessary

I'm confused. It looks like a butt-hurt 10 year old moderator edited my post out of ignorance.

"Commie" is not an insult, it's an slang term for communists and those with communist beliefs (regardless of whether or not they describe themselves with that label).

I can certainly appreciate that [poo] was edited, but I've been using it on occasion because other moderators had deemed it acceptable in the past. Consistency plz. Can we get one list of banned words?

[I wish I could obey forum rules]

Re: Proof the Bailouts Were Necessary

... Wait... people over the age of 12 play soccer?

Re: Proof the Bailouts Were Necessary

I would say that "Euroweenies" like it, but surely someone would take it as a serious insult. Clearly, I have a problem with everyone who lives in Europe. tongue

[I wish I could obey forum rules]

Re: Proof the Bailouts Were Necessary

Soccer? You mean football? The world's most popular sport?

Re: Proof the Bailouts Were Necessary

We mean soccer. As the world's richest nation and biggest reason English is used so much internationally (like right now), we get to name sports! smile

[I wish I could obey forum rules]

Re: Proof the Bailouts Were Necessary

"As the world's richest nation"


/me points and laughs.
Go play some handegg while enjoying your debts.

Maar doodslaan deed hij niet, want tussen droom en daad,
Staan wetten in de weg en praktische bezwaren,
En ook weemoedigheid, die niemand kan verklaren,
En die des avonds komt, wanneer men slapen gaat.

Re: Proof the Bailouts Were Necessary

/me dejongs RisingDown

/me argues the yellow card

The core joke of Hitchhiker's Guide to the Galaxy is that of course no civilization would develop personal computers with instant remote database recovery, and then waste this technology to find good drinks.
Steve Jobs has ruined this joke.

Re: Proof the Bailouts Were Necessary

You have to include all assets, including credit limits, RisingDown. tongue

[I wish I could obey forum rules]

Re: Proof the Bailouts Were Necessary

So GM uses its bailout money to put it's logo on a soccer team's jersey and nobody blinks an eye at this?

15 (edited by The Yell 03-Aug-2012 15:32:16)

Re: Proof the Bailouts Were Necessary

YOU LIE

they paid back the bailout!!!! *













* stimulus money was given to them to do that

SOURCE: http://www.nytimes.com/2010/05/02/business/02gret.html

pps no I am not calling xeno a liar, just colorfully and sarcastically repeating the SPIN handed us by our overlords

The core joke of Hitchhiker's Guide to the Galaxy is that of course no civilization would develop personal computers with instant remote database recovery, and then waste this technology to find good drinks.
Steve Jobs has ruined this joke.

Re: Proof the Bailouts Were Necessary

Might be cheaper to the American taxpayer to just buy Manchester United; then they can put the US flag on their jerseys.

Re: Proof the Bailouts Were Necessary

GM's stock price has to more than double before taxpayers can be payed back. Tax money is still invested in GM, and right now withdrawing that investment would come at a loss of many billions.

[I wish I could obey forum rules]

Re: Proof the Bailouts Were Necessary

> xeno syndicated wrote:

> Might be cheaper to the American taxpayer to just buy Manchester United; then they can put the US flag on their jerseys.<<<

our flag has flown over many great things, and many shameful things

God prevent it from flying over Manchester United

/shudders

The core joke of Hitchhiker's Guide to the Galaxy is that of course no civilization would develop personal computers with instant remote database recovery, and then waste this technology to find good drinks.
Steve Jobs has ruined this joke.

Re: Proof the Bailouts Were Necessary

"Manchester United has won many trophies in English football, including a record 19 league titles, a record 11 FA Cups,[5] four League Cups and a record 19 FA Community Shields. The club has also won three European Cups, one UEFA Cup Winners' Cup, one UEFA Super Cup, one Intercontinental Cup and one FIFA Club World Cup. In 1998

20 (edited by The Yell 03-Aug-2012 18:09:26)

Re: Proof the Bailouts Were Necessary

yeah


well now its $2.63 billion, thanks to UNCLE SUCKER  X(


*  the initials for United States are of course U.S.
Thomas Nash drew cartoons showing the U.S. as a gaunt old guy with a goatee and "U.S." on his coat
people said it stood for "Uncle Sam"

"Uncle Sucker" is a spoof of that to indicate the extreme gullibility of our government

it doesn't mean incestous sodomy

don't [] me bro

The core joke of Hitchhiker's Guide to the Galaxy is that of course no civilization would develop personal computers with instant remote database recovery, and then waste this technology to find good drinks.
Steve Jobs has ruined this joke.

21 (edited by xeno syndicated 03-Aug-2012 18:12:43)

Re: Proof the Bailouts Were Necessary

"making the deal's total value worth as much as $600 million"

"valued at $2.23 billion."


So, yeah, what I was saying.  600 million simply to advertise GM, when the team itself is valued at 2.23 B? It'd be better for the US taxpayer to outright buy the team - they could put their GM logo, their various other state-owned / state-control corporations, and they'd get any profits the team would make.  I mean, why not bail out / buy up companies that might actually turn a profit!?

Re: Proof the Bailouts Were Necessary

Oh no I'm not saying it was a good move on GM's part (as pointed out, GM makes crappy cars though they do own Vauxhall over here which tend to be pretty decent). My post was in relation to Yell's post about it being bad for their precious flag to fly over.

Saying that though I don't think they'd want to tarnish the Man U brand by flying the US flag.

23 (edited by The Yell 03-Aug-2012 21:08:58)

Re: Proof the Bailouts Were Necessary

" As of July 2012, the club is number one in Forbes magazine's annual ranking of the world's 50 most valuable sports teams, valued at $2.23 billion."

textbook example of the difference between price, and value.

If we want to sponsor rioting and arson we can just buy out Insane Clown Posse and grant pardons to their fans if they're still standing at dawn the day after the concert

The core joke of Hitchhiker's Guide to the Galaxy is that of course no civilization would develop personal computers with instant remote database recovery, and then waste this technology to find good drinks.
Steve Jobs has ruined this joke.

24 (edited by xeno syndicated 03-Aug-2012 21:52:26)

Re: Proof the Bailouts Were Necessary

Maybe spend 600 million to promote this a bit better:

http://www.chargedevs.com/content/news-wire/post/bob-lutz-introduce-phev-pickup-suv-and-van

Show how companies' bottom lines will be helped by using PHEV Trucks, Vans, etc...

They'll be 'competing' with Chrysler:

http://video.answers.com/2012-ram-1500-phev-pickup-truck-517173132

Re: Proof the Bailouts Were Necessary

Man: What are you doing?
Boy: I'm playing catch.
Man: You're dropping it every third time.
Boy: Hmm you're right. I'm going to juggle.
Man: Now you're dropping two balls at once!
Boy: But I catch 1 of them every time! Yay

and that's how GM decided to build a truck with 3 propulsion systems

The core joke of Hitchhiker's Guide to the Galaxy is that of course no civilization would develop personal computers with instant remote database recovery, and then waste this technology to find good drinks.
Steve Jobs has ruined this joke.