Obama administration halves Chrysler’s marketing budget

Seems like President Barack Obama didn’t like Chrysler’s “We’re building a new car company” campaign. Chrysler had planned on spending $134 million in advertising over the nine weeks it spends in court – the Obama automotive task force gave the Auburn Hills automaker half that.

According to Robert Manzo, executive director of Capstone Advisory Group and a consultant to Chrysler, not marketing would end up “eroding” the image of the brand while it stays in bankruptcy. 

Manzo told U.S. Bankruptcy Court Judge Arthur Gonzalez that the marketing budget was a “hotly discussed” matter between Chrysler and the task force, which led to the task force slashing the requested amount in half.

Judge Gonzalez then asked Manzo: “Idle plants; why market?” – pertaining to Chrysler’s shutdown of its plants for nine weeks, reports Automotive News.

“The belief on all sides was that it was essential for Chrysler not to lose its brand image in the marketplace,” Manzo testified. “Advertising and marketing dollars are critical to make sure the right message is out there about Chrysler, what’s happening to Chrysler during this interim period and why Chrysler will be a brand going forward that is one that a consumer should continue to look at as one of their purchase opportunities.”

– By: Omar Rana