Tuesday, May 12, 2009

Obama Admin Cuts Chrysler's Ad Budget By Half

The sorry saga of Chrysler continues.

The administration's Auto Task Force, headed by investment banker Steve Rattner, reportedly cut the Chrysler's advertisement budget by 50%.

According to the article posted on autoblog.com,

"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. Judge Arthur Gonzalez wasn't even sure 50% spending was necessary, saying "idle plants, why market?" "

I suspected as much, but the administration is really going to micro-manage the operation of Chrysler, with Auto Task Force headed by a person with zero auto industry experience. All I can say to Chrysler is: You should have gotten your house in order, a lot sooner.


Post a Comment