In a bid to cut a tremendous amount of costs, GM has won approval to cut over 50 corporate sponsorship contracts. What iconic displays will disappear?
General Motors was given permission by a federal judge to cut over 50 advertising and marketing contracts across the U.S. The decision, made by U.S. Bankruptcy Judge Robert Gerber on Monday, allows GM to cut millions of dollars in obligations to create a more financially sound company.
Amongst the cuts is the iconic Chevrolet Clock, a Times Square fixture since the 1930s. The clock underwent an expensive, and major technological redesign in 2007.
A total estimate of the savings has been difficult to determine. Despite the company losing tens of billions of dollars, GM still spent $424 million in corporate advertising during the first three months of 2009. Although that number is down nearly 20% from last year, it is still a large amount of money for a company that lost $31 billion in 2008, and $82 billion over the last four years.
The embattled automaker will eliminate ties with the University of Southern California, professional sports teams like the Oakland Raiders, and events, like golf's Arnold Palmer Invitational tournament. Also gone is GM's 15-year connection to the San Antonio Livestock Expo, as well as the stadium naming rights for the Lansing Lugnuts minor league baseball team. That stadium has been called Oldsmobile Park since 1995, despite the 2004 elimination of the brand.
Judge Gerber also gave GM approval to purchase Delphi with support from private equity firm Platinum Equity LLC. Parts supplier Delphi had been mired in its own bankruptcy proceedings the last quarter of 2005.